The vagabond youth hero of the first "Dragon Knight", Takeru Yamato, wanders into a small town of Phoenix and finds it terrorized and devoid of young men, its only residents being few older men and many moore unmarried young girls. Next morning after Takeru's arrival, he sees the town changed. He learns that Phoenix had been once ruled by a group of female demons known as the Witch Clan until they were destroyed by their rivals, the all-male Dragon Knights. Three years before the events of the game, a woman known as Mesaanya had arrived in Phoenix. At first she has appeared very friendly and gained the villagers' trust as a healer, but then she revealed her true colors as she took over the Witch Tower and forbade the love between men and women. Now that her commandment was broken, she has turned dozens of kidnapped village girls into different monster minions to guard the Witch Tower and also possessed a young maiden named Kate. After Mesaanya steals a sacred book containing the set of evil-sealing holy scriptures that Takeru delivered for the Elder from Baan before it could be used against her, Takeru relucantly agreed to enter the tower and collect the scriptures to break the curse.