In Faxanadu, an unidentified wanderer joins a group of Dwarves to attack the town of Eolis.
The player-controlled protagonist of Faxanadu is an unidentified wanderer who returns home. The game begins when he approaches Eolis, his hometown, after an absence to find it in disrepair and virtually abandoned. Worse still, the town is under attack by Dwarves. The Elven king explains that the Elf fountain water, their life source, has been stopped and all other remaining water has been poisoned and provides the protagonist with 1500 gold, the game's currency, to prepare for his journey to uncover the cause. As the story unfolds, it is revealed that Elves and Dwarves lived in harmony among the World tree until The Evil One emerged from a fallen meteorite. The Evil One then transformed the Dwarves into monsters against their will and set them against the Elves. The Dwarf King, Grieve, swallowed his magical sword before he was transformed, hiding it in his own body to prevent The Evil One from acquiring it. It is only with this sword that The Evil One can be destroyed. His journey takes him to four overworld areas: The tree's buttress, the inside of the trunk, the tree's branches and finally the Dwarves' mountain stronghold. 
