The story follows Fam and Ihrie, who are searching for the legendary Ultimate Power, which is said to grant any wishes the finder may have. After obtaining a map from the merchant Galuff, they find the "Proof of Royalty" in an ancient castle, where they fight off fellow treasure hunters Miguel and Rasha, along with the treacherous Galuff. Fam and Ihrie learn that alongside the Proof of Royalty, they need the Sword of Sargus and Mirror of Truth to obtain the Ultimate Power.

Later, Ihrie scolds Fam for being so slow at memorizing new spells, which causes Fam to run away on her own. She encounters Lyle in the woods, and falls deeply in love with him. Lyle is also looking for the Ultimate Power, and the two partner up to find the rest of the treasures. Eventually Fam, Lyle, Ihrie, Miguel, Rasha and Galuff all end up at a ruined city; the location of the Sword of Sargus. However, there they run into Ruguduroll, who taunts Lyle and proves invulnerable to both swords and magic before vanishing, leaving the sword behind. Lyle reveals that Ruguduroll was once a priest in his homeland, but was corrupted by magic and destroyed the entire kingdom, along with Lyle's fiancee, Meria. This is why Lyle wants the Ultimate Power; for revenge.

As Ihrie tries to grab the Sword of Sargus, it is revealed that the spirit inside it, Sargus, only lets people who are without materialistic wishes touch it. As such, Fam is the only person in the group allowed to touch the sword, and her wish is to help Lyle on his quest. As Fam is determined to help the prince, Ihrie decides to come with them, and since Rasha has fallen in love with Lyle as well (causing rivalry between her and Fam), she follows them as well and forces Miguel along. With Galuff in tow, the group goes to find the Mirror of Truth. This quest does not go on for long, however, as Ruguduroll finds it first, then attacks the group and steals the Proof of Royalty and Sword of Sargus. At the same time, it is revealed that Ihrie's magic is the same type as Ruguduroll's, and therefore she can harm him.

Ruguduroll is unable to get the Ultimate Power, as the sword belongs to Lyle as per Fam's wishes, and Sargus refuses Ruguduroll's wishes. The group make their way to Ruguduroll's castle, and on their way they find a magical stone where his memories are inscribed. Tapping into it, they see that Ruguduroll was corrupted by all the poverty and misery in the land that went unseen by the royal family. He wanted the power to stop it, and accessed the powerful magic hidden by the king. The group break into his castle, and Fam and Ihrie manage to hold him back with their magic as Lyle attacks him with the reclaimed Sword of Sargus. Ruguduroll is killed, and Lyle begins rebuilding his kingdom as Fam says goodbye and runs to Ihrie.