The sword Narsil was forged during the First Age by the Dwarf Telchar of Nogrod, a famous weaponsmith and artificer. The sword's name contains the elements nar and thil, fire and white light respectively in Quenya, referring to the Sun and Moon.
For whom Telchar originally made Narsil, as well as its early history, is unknown, as is its history prior to its possession by Elendil of Númenor. One possibility is that Narsil was first given to a prince of the Noldor, passing thence to Elros, one of the last of the three Noldorin Royal Houses perhaps via Maglor, who cherished Elros as a son after briefly abducting him as a child.
In the Second Age, Narsil would then have been retained by Elros, Númenor's first king, and his direct heirs, until Silmariën was denied the throne because of Númenor's laws of primogeniture. In this case, Silmariën, who herself went on to found a new dynasty — the Lords of Andúnië — presumably came into possession of two of the most ancient Númenórean heirlooms, the Ring of Barahir and Narsil.
The other possibility is equally plausible, and circumstantial evidence for it can be found in The Silmarillion. Those few Númenóreans who continued to welcome the Eldar late into the Second Age led by Silmariën's descendants had been brought many gifts from Aman by their friends and perhaps one of these was Narsil.
The only certainty concerning the sword's history begins over two thousand years after Silmariën, when her distant descendant, Amandil, the last Lord of Andúnië, sent his son Elendil back to Middle-earth with Narsil towards the close of the Second Age, as he correctly guessed at Númenor's imminent destruction.
Elendil became thereafter a great lord, the first of the kings of Gondor and Arnor. He used Narsil in the War of the Last Alliance against Sauron. During the siege of Barad-dûr, Sauron was brought to bay and his body slain by Elendil and Gil-galad, who were themselves slain, and Narsil broke into two pieces beneath Elendil. Elendil's son and heir Isildur then used the hilt-shard of the sword to cut the One Ring from the hand of Sauron. Sauron's spirit fled and he was vanquished. Although his body was broken and power removed, Sauron's spirit survived when Isildur claimed the One Ring for his own.
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