The opening scene informs the player that it has been three years since the events of Ys I and II. Adol Christin and his friend Dogi are on a journey. Passing through a town, they find a gypsy caravan and Dogi has his fortune told. The fortune teller's crystal ball explodes and both Adol and Dogi decide to go to Dogi's hometown of Redmont. On the way to Redmont, the pair chance upon a wildcat that attacks them, saving Dogi's childhood friend, Elena Stoddart, in the process. Upon arriving, they learn that the townspeople are being threatened by men from nearby Valestein Castle. Always ready for adventure, Adol decides to assume the task of helping them out.

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