The game takes place in a Viking legend-inspired world, stuck in a perpetual twilight since the sun stopped moving weeks before the events of the game, mainly populated by humans and giant-like creatures called the Varls, as the Dredge, an ancient race believed to be extinct for ages, returns to kill them all.

On the west, the Varl Vognir, together with several other companions that include his longtime friend Hakon, the retired Varl warrior Ubin, and the resourceful human Eirik, are charged with escorting Ludin, Prince of the human capital Arberrang, to the Varl capital Grofheim in order to seal an alliance between the two races. In the city of Vedrfell however, Vognir is slain in an encounter with Dredge, leading Hakon to take command of the caravan. Continuing their way, the caravan faces many of the Dredge, and, while exploring the city in ruins of Ridgehorn, find an unconscious man next to a woman's dead body on the top of a tower. As they rescue him and continue their way, the man, Eyvind, unsuccessfully implores Hakon to return to Ridgehorn, convinced his companion is still alive. The caravan reaches Grofheim, to find it aflame and completely overrun by Dredge.

On the other side of the country, the hunter Rook and his daughter Alette encounter a lone Dredge near their home of Skogr. They hastily come back to their town and their Varl friend Iver, to find the village attacked by the Dredge. Together with the Chieftain's wife Oddleif and the other survivors of the village, they escape to the town of Frostvellr. Finding the town unsafe, they continue their quest for shelter, eventually having no choice but to seek refuge in the Varl fortress of Einartoft. On their way, terrible earthquakes occur, seemingly caused by a massive form in the distance. Although the Varl of Einartoft refuse to let humans in at first, Iver, whose real identity is a legendary, long-disappeared warrior known as Yngvar, persuades them to let the caravan in.

In Einartoft, Rook, Alette and their companions meet Hakon, Prince Ludin, and their own companions who also took shelter in the fortress after discovering what was left of Grofheim. They all meet with the Varl King, Jorundr. The situation is soon revealed to be desperate here as well, as Einartoft is under siege from the Dredge and their immortal champion, Bellower. With the king refusing to destroy the bridge leading to the fortress, the companions have no choice but to fight the Dredge, leading to Iver being severely wounded and losing an arm in a fight against Bellower. As Eyvind tries to distract Bellower and save Iver, the massive form they saw in the distance earlier, a massive, terrifying serpent, emerges and gives a glance at the battle before going away, causing the Dredge to retreat in fear.

Meanwhile, Juno, the woman whose body was next to Eyvind when Hakon's caravan found him, awakens in the ruins of Ridgehorn, to find the gigantic serpent facing her. After unsuccessfully trying to kill her, the serpent speaks to her, revealing he was supposed to swallow what was left of the world, but is deeply troubled by the presence of a "darkness" taking over the world instead. After he leaves, Juno contacts Eyvind by telepathy, urging him to leave Einartoft and meet her down south in the city of Sigrholm.

Eyvind pleads with Rook to lead him to Sigrholm. Rook agrees, as Einartoft is already doomed, and the caravan leaves, soon warned by Ubin and other survivors catching them that the city fell a few hours after they left. When the caravan reaches the unwelcoming city of Sigrholm, Juno is nowhere to be found; despite Eyvind's protests, Rook decides the only hope they have left is to find shelter in the fortified city of Boersgard. However, they find another city in the brink of chaos, with no boats left, and where a group of mercenaries named the Ravens, led by the Varl Bolverk, rules the city. Boersgard finds itself stuck between the sea and a Dredge host. More Dredge arrive every day, while supplies are running out and widespread riots are tearing the city apart from the inside, as Rook and his friends decide their only hope resides in building new boats to leave by the sea before it is too late. As the city's defenses are about to fall before their goal is achieved, they are saved by Juno, together with Hakon, Prince Ludin, and an army of Varl who escaped Einartoft at the last moment. Despite this brief moment of triumph, they soon find themselves in more trouble as Bellower and yet more Dredge arrive. With the help of Rook, Juno creates a magic arrow; the Dredge would rout if Bellower was defeated, and although he is immortal, the arrow would hit his mind, convincing him of his own death and making him fall into a coma. The player is given the choice to give the arrow to either Rook or Alette; the one chosen ultimately hits Bellower, allowing their companions to defeat him and make the Dredge army flee, but is killed by Bellower after shooting him. Some time later, the caravans of Rook and Hakon, unified as one, leave Boersgard together with the Ravens on newly constructed boats, afflicted with grief, after giving Rook/Alette a proper farewell and funeral.