Genealogy of the Holy War takes place on the continent of Jugdral, which is divided between eight countries: the Kingdom of Grannvale, the Kingdom of Verdane, the Dominion of Agustria, the Republic of Manster, the Kingdom of Thracia, the Republic of Miletos, the Kingdom of Silesse, and the Kingdom of Isaach. According to staff, Jugdral is within the same world as Archanea, the continent featured in the original Fire Emblem and its sequels: the events of Genealogy of the Holy War are set hundreds of years prior to the time period of Archanea, with the latter being in a barely civilized state. It was during this time that the Dragon Tribes were debating how to treat humanity. In ancient times in the year Grann 440, the Earth Dragon Loptyr made a pact with the priest Galle, who becomes his vessel for bringing ruin to humanity. By 632, the Divine Dragon Naga had discovered Loptyr's part in the gradual conquest of Jugdral, so she chose twelve soldiers to defeat Loptyr: this event became known as the Miracle of Darna. The Twelve Crusaders defeated Loptyr and his cult, bringing peace to the land in a conflict dubbed the "Holy War" — these twelve would go on to establish Jugdral's countries. The events of Genealogy of the Holy War begin in the year 757.

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