Shadowgate takes place in the fictional world of "Tarkus" ("Tyragon" in the Before Shadowgate novel, also known as "Terrakk”, the Kal Torlinese term for "Earth") where creatures from fantasy and myth live. In the land of "Kal Zathyn" (according to the novel), on top of "Gatekeeper Mountain", is the living castle of "Shadowgate" where a group of powerful wizards known as the "Circle of Twelve" once met. One of the Circle of Twelve, "Talimar", became corrupt and was removed from the Circle. After that, he began to call himself "The Warlock Lord" and caused chaos across the lands by inciting conflict between humans, elves, dwarves, and the races on Tyragon. After those wars ended and the land began to rebuild, the Warlock Lord amassed an army of followers, including trolls, orcs, goblins, and other creatures. He waged war against the Kings of the Lands, and was defeated when the rest of the Circle of Twelve intervened. They sealed the Warlock Lord inside the caverns underneath Shadowgate, and then disbanded. The only wizard who remained was "Lakmir", who took on the role of Tyragon's guardian to ensure that the Warlock Lord's evil would not threaten the Lands again.
