The Shadow Dragon Medeus, one hundred years after his defeat at the hands of the hero Anri, has returned to plunge the continent of Archanea into fear and despair.
Medeus rebuilds the Dolhr Empire and joins forces with Pontifex Gharnef, who shares his ambitions for world domination.
Together they set out to subjugate the entire continent.
A descendant of Anri's royal house, King Cornelius of Altea, takes up Falchion and attempts to repeat his predecessor's heroics—but before he can slay Medeus, he is betrayed by his erstwhile allies in the kingdom of Gra. In the ensuing chaos, Altea collapses and Falchion is lost.
Prince Marth, just 14 years old, manages to flee Altea to the remote island kingdom of Talys. Though he is received warmly there, he dreams of returning to his homeland and freeing it from oppression.
Conflict comes to Marth again on his 16th birthday, as the Galder Pirates suddenly overrun and occupy Talys Castle. Joining forces with Princess Caeda and a handful of Altean soldiers, Marth resolves to drive the pirates out.

As the very first Fire Emblem title, this game was the starting point for many hallmarks of the franchise—class promotions, permanent loss of defeated units, and the fabled Triangle Attack all began here.