The Icicle Inn is located on the northern continent to the north of Bone Village and to the south of the Northern Crater. The town is an area that you just pass through on your way to the next area.
The story of the game takes you through to the Icicle Inn after you have passed through the Forgotten Capital at the start of Disc 2. Leaving the area involves snowboarding down a hill into an area that eventually leads you to the Great Glacier. Check out the Icicle Inn walkthrough page for more information.
There are a number of items that you can obtain around the Icicle Inn including:
Hero Drink
Vaccine
X-Potion
Turbo Ether
You can purchase the following items at the Weapon Shop:
The map below shows the location of the Icicle Inn on the World Map:
Organics
Dragon Claw
Microlaser
Adaman Clip
Hawkeye
Red M-phone
Mast Ax
Lariat