☐ Old yellowish animated movie like a cross between Hobbit and Dark Crystal

Many (many :-\) years ago, when I was little, my little sister and I spent the weekend in Toronto at her father’s place. I recall that the first night we were there, he had a bunch of people over for a sort of party or whatever, so my sister and I stayed in the bedroom and watched an animated movie. For decades now, I’ve been trying to figure out what movie it was. Here’s a list of everything I can remember about it:

  • We watched the movie on broadcast (OTA) TV in about 1984-1988, so it must be from before then.
  • It was similar to (but not) The Hobbit, a fantasy movie with fantasy creatures.
  • It was similar to (but not) The Dark Crystal, again, fantasy creatures.
  • It’s not Black Cauldron.
  • It was animated (definitely cartoony).
  • It had an overall yellow pallet for its color-scheme.
  • There was a scene in which two of main characters (very much like hobbits) were standing on the top of a cliff and watching an army of bad creatures (which in my mind are like Skeksis), marching through a mountainous pass and trying to figure out what to do or talking about warning someone.

Does this sound familiar to anyone? Does anybody have any idea what movie it was?