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In 171 AG, Aiwei fled to the Misty Palms Inn after his involvement in the infiltration of Zaofu was discovered by Team Avatar. In pursuit of him, Team Avatar eventually traveled to the Misty Palms Oasis, where Mako and Bolin discovered Aiwei heading toward the inn. Team Avatar attempted to rent a room in order to monitor the truth seer, but they were denied by the innkeeper, who refused to accommodate any teenagers due to a prior incident involving unruly teenagers.
Shortly after, Macao and Lily barged into the inn and asked for Bolin's autograph, identifying themselves as huge fans of his movers. Upon discovering that Bolin was a mover star, the innkeeper retracted her initial refusal and allowed Team Avatar a choice of any available room in the inn. Mako insisted on the room across from Aiwei's, despite the innkeeper's remarks that it was too small to accommodate four people.
Korra and Mako observed Aiwei from their room, while Asami and Bolin played numerous games of Pai Sho, which the latter found in one of the room's chests. Korra eventually decided to confront Aiwei in his room and found the earthbender in the middle of meditation. The young Avatar decided to meditate as well in order to enter the Spirit World, after deducing that Aiwei would be meeting with Zaheer outside of the mortal realm.
Later that night, Ghazan and Ming-Hua arrived at the Misty Palms Inn in search of the Avatar. Alarmed by their presence, Mako urged Asami to take Korra's body to safety on Naga, while he and Bolin occupied the two benders. Ming-Hua attempted to ensnare the polar bear dog, but was quickly overwhelmed by a series of attacks from Mako, whom she eventually managed to subdue using a water tendril. Meanwhile, Bolin attempted to defend himself from Ghazan's lavabending to no avail, eventually choosing to dive into a pool in order to shield himself from the flaming earth projectiles. Ming-Hua proceeded to trap the earthbender inside a water orb, before lifting him out and holding him alongside Mako, who remained unconscious and immobilized on her other water tendril.
The Misty Palms inn is a multi-level lodging facility in the Misty Palms Oasis. It consists of several rooms rudimentary in design, with only basic accommodations such as flat beds and storage chests.
Some drawers are stocked with recreational activities such as Pai Sho game sets and books, while candles are provided as a means of lighting. Outside of the inn is a large pool flanked by three palm trees.