Dragon Wars begins as Lufiak Duell is sent on a rite of passage: he must return within a year with a dragon's scale. Taking this quest at face value, the headstrong youth goes in search for the nearest dragon he can kill and during the struggle, comes to find out that he is part of a great dragon clan, men who have the blood of dragons flowing through their veins.

This revelation, of course, sends him to the Sky Garden to meet the Great Dragon, but for a different reason than he has in mind. Lufiak and Feenie, the fairy he rescues, come to find out that a "Dark Force" has been infecting the land, moving from the south and causing normal creatures to act in odd manners. It's from this point, Lufiak continues his action-packed quest to defeat the Dark Force.