The story begins in the castle town of Aliahan, set in a medieval world of knights and magicians. The party ventures through caves, ruins, and castles as the adventure unfolds. Dragon Warrior III's world map corresponds loosely to the real geography of Earth: the town of Romaly evokes ancient Rome, Portoga recalls Portugal, Assaram sits near present-day Iraq, Jipang corresponds to Japan, and a place called New Town in eastern North America is in the middle of a revolution against an overbearing ruler.