While seemingly placid on the surface, the world of Lunar is slowly descending into chaos, as the Goddess Althena, the creator and guardian of the world, has disappeared and the valiant efforts of the legendary Dragonmaster Dyne and his faithful companions fade into obscurity. With Althena gone and no one able or willing to become the next Dragonmaster, a shadowy figure, known only as the Magic Emperor, has started plotting to usurp Althena's place and become a god. In a remote village far removed from the decay that is slowly spreading throughout the world lives a young man named Alex, who dreams of one day becoming the next Dragonmaster like his hero Dyne. One day, Alex's friend Ramus convinces him to head towards a cave near town, where it is rumored the legendary White Dragon resides. With Alex's childhood friend Luna and his mysterious pet Nall in tow, Alex heads off on what seems to be a meaningless adventure, not knowing that it would be the first step in an epic journey with the fate of the entire world at stake.

- A Classic RPG Brought to a New Generation of Fans - Widely acclaimed as one of the best RPGs of all time, the classic, original Lunar is back to be experienced by a new generation of gamers.
- Enhanced Graphics and Sound - All of the graphics have been redone to take full advantage of the widescreen format and processing power of the PSP. Newly composed songs added to the remastered original soundtrack ensure the new audio experience is just as impressive as the graphical overhaul.
- Traditional Play - Classic RPG play that has players leveling and upgrading gear as you progress through a story peppered with cutscenes.
- Expanded Battle System - First introduced in Lunar Legend, the Arts Gauge System that allows players to unleash devastating attacks or heal party members has been implemented to add another dimension to the battle system.
- All-New Additional Story Elements - The beloved original story has been expanded and fleshed out with new cut-scenes and story sequences, revealing more about the four heroes and answering some of the questions left unresolved in the original.