The game's protagonist is a young man named Alundra, who learns that he has the power to enter people's dreams. He is shipwrecked on an island, near the village of Inoa, where locals have been suffering from recurring nightmares that sometimes cause death. With his dream walking ability, Alundra proceeds to try to help the locals. The narrative becomes gradually darker and more twisted as the game progresses, dealing with mature themes such as death, clinical depression, fate, religion, and the essence of human existence.