A generation has passed since the events of the first Overlord, with that game's Overlord now the ruler of the Abyss after being trapped following the events of Raising Hell. The Tower Heart was broken shortly after the old Overlord's disappearance, causing a cataclysm, which destroyed much of the old land and started a magical plague. When the survivors fled to new lands, the Glorious Empire came into being and it began to take control of the new lands, while purging all magical creatures. The old Overlord's mistress gives birth to his child, the "Overlad". The Mistress then takes the child to the mountain village of Nordberg and leaves him to grow up there, where all of the villagers (except a girl named Kelda, the Overlad's only friend) fear him, referring to him as "Witch-Boy".
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