The Last Story is set on Ruli Island. While the continent Ruli Island is linked to by a harbor has been devastated by wars, Ruli Island continues to thrive and is rich with resources.
Elza, the protagonist of The Last Story, lives in Ruli City, the heart of the island. This grand city is more than a plaza and main street. Ruli City has many small alleys to walk through. The layout was inspired by French and Italian villages.
Mercenaries came to Ruli Island seeking work and fame. Elza and his friends are part of this group. Mercenaries are given dirty jobs like slaying monsters. People generally try to avoid mercenaries because of their work. Knights, on the other hand, are respected and have a stable life. Elza and other mercenaries dream that one day they will be able to become knights.