The Last Story takes place upon the island fortress of Lazulis, in a world that is slowly being drained of life by an unknown force. The story focuses on a group of mercenaries looking for work on Lazulis; one of their number, Zael, dreams of becoming a knight. During gameplay, the player controls Zael as he and the mercenary group to which he belongs undertake missions on Lazulis. Zael can command the rest of the mercenary squad during missions, and fights in battles that involve action, tactical and stealth elements.
