The player travels through an assortment of towns, landscapes, and dungeons while battling a variety of enemies ranging from insects to giant bosses, and gaining experience and items along the way.

An evil being known as Zerah has polluted all of Lakeland's rivers and lakes, making people very sick, and some dying.

The following is a list of major characters in Lagoon, taken directly from the manual: The original Sharp X68000 version has several differences from the more common Super NES release.

Also, the storyline is slightly different, with objectives that do not match the order in which they happen in the Super NES version.

The combat is closer in style to Ys, Hydlide or The Tower of Druaga, where the player attacks by simply drawing a sword and crashing into an enemy, rather than hitting a button for each slash.