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Lazulis Island, location of the like-named harbour town of Lazulis City. A band of mercenaries, headed by Zael and his surrogate brother Dagran, come in search of work. They are given a task by the governing Count Arganan, which will take Zael and his band of mercenaries across the expanse of Lazulis Island and then beyond, over the ocean.

The Last Story is an action role-playing game based around handling what the enemies focus on. The player controls Zael directly, giving commands to the rest of the party, who will draw the attention of any enemies he attacks. Other enemies may or may not focus on him, and instead focus on other members of the party. By attacking these enemies, Zael can draw their attention away from his allies.