WARNING: This section or article may contain spoilers!
Five centuries after the Hero of Oakvale's final defeat of Jack of Blades, the fate of Albion would once again come to rest in the hands of an unlikely Hero from the ancient bloodline, whose path to greatness began on the heels of tragedy.
The Hero starts as a poor orphan living with his/her (the player can choose to be a boy or a girl) older sister, Rose. Going to see what all the noise is about that morning, they find a man named Murgo, who is a trader selling "magical" items from his cart (most of which are frauds, as he sold a magical mirror which would make the owner appear beautiful in it but would only work in complete darkness). They are especially fascinated by a music box that, by turning the handle three times, will "grant the user one wish". However, the Hero's sister doesn’t think it will work. An old woman appears and expresses her disappointment that some kids don't even believe in magic. (It is possible that Rose does believe; however, she would rather spend gold on food than magical objects that most likely aren't even real). The woman encourages the two to earn five gold to buy the music box, as they will never know if it does grant wishes if they don't try.
They spend the whole day earning the gold needed to buy the music box, and then Rose make her wish to live in a castle (inwardly), at which point the box starts to play a tune from Fable, glow and spin, all with increasing intensity, until it disappears. Disappointed, they return to their make-shift shelter, and find the dog they saved from a bully during their quest to earn 5 gold. Late that night they find that some guards want to take them to Fairfax Castle, and they instantly agree. There they meet Lord Lucien in his study, who tells them that if they help him with something, he can arrange for them to live in the castle. He tells them to stand on a platform on the floor bearing a strange symbol (the crest of the Heroes Guild), and when they do, it shines and forms a blue barrier around them. After seeing this, Lucien states that they are Heroes and tries to touch the barrier, which turns red. Surprised, he goes to the table and reads through one of his books. He states that they are Heroes, but none any of the three he needs; instead, one of them is the fourth. Stumped, Rose asks what's happening. Lucien gets a gun from one of his drawers and says: "This isn't what I wanted -- but nothing must stand in my way.". He then shoots the Hero's sister, who falls to the ground motionless. Turning to the Hero he says: "I can't allow you to live either. I'm Sorry." and shoots the Hero, who falls out through the window of the tower. The Hero survives the fall and is found by Theresa, the old blind woman that spoke to Rose near the trader's wagon, and the dog.
- "Lucien disappeared from Castle Fairfax that night, certain that those who might stand in his way were dead. But some grief is so great, even death may keep its distance. And so the boy/girl survived. Days later, far from the dark alleys of Bowerstone, life slowly returned to his/her small, broken body. The boy/girl awoke to a familiar face watching over a strange bed. He/She reached out for the comfort of the dog's warm fur, ready to take his/her first steps in a new life. Ten winters blanketed Albion, ten summers filled the air with the sounds of insects and laughter. With time, the boy's/girl's pain turned to strength. His/Her grief became will. A will to change the world. And to avenge the death that still haunted his/her every dream."
- — Theresa as the Narrator
The story jumps forward to the Hero who has been living with Gypsies in their camp next to Bower Lake. Theresa gives the Hero some items and a Guild Seal, and sends them to the tomb in the middle of the lake. Once there, Theresa tells the Hero through the guild seal, which acts as a communicator, that the cave was once the Heroes Guild, where 500 years ago Heroes were trained to fight evil (however once the Heroes left the guild they were free to become good or evil). She also says that the Guild was destroyed a long time ago when the people of Albion revolted against the Heroes, as they had become self-serving and generally evil, being more like mercenaries than Heroes. After gaining his/her new abilities, the Hero heads for Bowerstone, where Theresa informs them that Lucien is at The Tattered Spire and he plans to rebuild it. She tells the story of how it was built by the Old Kingdom as a hub for all the Will (magic energy) in Albion, and how its immense power can grant the users wishes.
She tells the Hero that they need to recruit the Heroes of Skill, Will, and Strength if they want to defeat Lucien. Hearing this, the Hero heads to Oakfield to find the Hero of Strength, a monk named Sister Hannah, who is a member of the Temple of Light like her father, and thus a pacifist (someone who refuses to fight). The Hero agrees to escort her through a cave so she can retrieve holy water needed to help plant the new Golden Oak. A magic acorn that only appears every 100 years or so is needed by Oakfield's people to maintain the fertility of the land, as before the first Oak was planted, it was barren and dead. If it isn't replaced, the land will return to its original state. Going through the cave Theresa states that she will need to find a reason for Hannah to fight; in the last chamber a monk informs Hannah that a stranger is in the Temple and he has a gun to her father’s head.
Enraged, Hannah takes a huge hammer off one of the statues and races for the Temple; the Hero arrives soon after only to see a strangely clothed man shoot the Abbot, after which Hannah kills him with her hammer. The next day at the funeral Theresa arrives and tells Hannah that Lord Lucien sent the man who killed her father, at which point Hannah agrees to help and tells everyone to call her 'Hammer'. (Previously, lots of people would joke calling her Hammer instead of Hannah, which she never liked.) Theresa takes her to the Guild Cave to start looking for the next Hero. (Some people believe that Theresa was the cause of Hannah's father's death, as she said before that she needed to find a reason to get Hannah to fight, then Lucien found out where she was and sent one of his men to hold her father hostage. This ended with both dying and Hannah vowing revenge on Lucien.)
Theresa tells the Hero to seek out a powerful Will user named Garth in his tower in Brightwood, the same man the Hero saw leaving the castle the night his sister was killed by Lucien. Reaching Garth's tower, the Hero is attacked by a Shard, a magical floating piece of the Spire that Lucien uses to teleport his men to where he needs them, and has to fight off Lucien's Spire Guards. At the top of the tower the Hero is blocked by fire and debris and can't reach Garth, who is taken prisoner by one of Lucien's more powerful men.
The Crucible and the Spire
Informed by Theresa that the winners of the Crucible (a tournament going through 8 rounds each with 3 waves) are invited to join Lucien's army in the Spire, it is decided that the Hero must win themself in order to go to the Spire and rescue Garth. She also sends Hammer to help, as the Westcliff path is infested with Bandits. On the way to the arena, Hammer and the Hero have a run in with some Balverines and kill them, at which time Hannah points out all the good they are doing, stating that she would pray for hours at the Temple without it actually helping anyone, and that they just killed some Balverines and therefore made the path safer for everyone. Reaching the Crucible, Hammer isn't allowed in, due to her pointing out that one of the commentators names doesn't make sense. After beating the challenge, the Hero departs for the Spire leaving behind his dog and his equipment. On arriving at the Spire, the Hero sees an older Lord Lucien who explains his plans of cleansing the world of its evil.
Later the Hero meets the Commandant, the same man who kidnapped Garth in his tower, who explains how there is a collar around the Hero's neck and that they will be tortured for disobeying him. He then tries to break the Hero’s will, hitting them and telling them to thank him for it. Later the Hero finds Garth, who says to be patient, and wait for their chance.
- "An unloved task slows the passage of time. An eternity passed within the Spire. Each day the great black walls grew. Each dawn grew darker in their shadows, and the deeds within the walls grew darker still. As years passed, the Hero's task seemed ever more impossible. Lucien remained behind the great white light, Garth remained hidden, and others like the Commandant appeared, all as brutal and powerful as the first. And slowly, all thought of freedom or the outside world faded..."
- — Theresa as the Narrator
10 whole years pass and the Spire has been almost completely rebuilt by Lucien's slaves. The Hero, still trapped, is ordered to find a missing guard, and soon finds the guard's corpse and takes his weapons. Garth appears and uses the last of his magic to remove the Hero’s collar, leaving the Hero to do all the fighting. They make their way to the Commandant's chamber, where the Hero kills him and lets Garth absorb all of the released experience orbs, giving him back all of his lost powers.
Escaping from the Spire, Theresa and the Hero’s dog meet them at the shore in Oakfield, and Theresa recruits Garth. After meeting Hammer, who is excited to see the Hero after the ten long years, they head to the Guild, where Theresa tells them that the Hero of Skill is a pirate named Reaver who resides in Bloodstone. On hearing this, Garth takes the other Heroes to his tower where he was working on a Cullis Gate. After fighting off a small army of Lucien's men while Garth charges the portal, only the Hero and the dog make it through to Wraithmarsh; Hammer and Garth are accidentally returned to the Guild when the Cullis Gate malfunctions.
Going through Wraithmarsh, Theresa explains how it used to be Oakvale, but over 100 years ago one of the citizens made a deal with evil forces and all of the people living in the town had to pay the price.
The Hero finally makes it to Bloodstone and finds Reaver posing for a sculpture in his mansion. Reaver first dismisses the Hero as he doesn't have enough Renown, locking the door behind them (if the player stays close to the door he can hear Reaver question the artist “You think my buttock looks like that?” at which point he shoots the artist). After returning to Reaver, he sends the Hero to return a seal to someone in the Shadow Court in Wraithmarsh. Finding the Court, the Hero learns that Reaver was behind the destruction of Oakvale all those years ago, having made a deal with the Shadows; in turn for agreeing to let them destroy Oakvale, the Court say that as long as he continues to send them sacrifices to steal the youth from, who they will recognise by the seal he sends them with, they will transfer their youth to him, granting him immortality. However, when the Hero arrives, they discover that there is a young woman in the Court’s chamber, who was teleported there by accident when she read from an old book. The player decides whether to keep the seal, sacrificing the Hero’s youth, or give it to the young girl, allowing the Court to steal her youth and the player to preserve their own.
Either way, the Hero returns to Bloodstone where Reaver is posing for a photo. Having just finished, Reaver shoots the photographer, as he learns it will take three months for the picture to develop. Reaver also explains that he had heard Lucien had put a bounty on the Hero's head, which he decided to accept. Lucien's men arrive and start destroying the town; one of Reaver's men informs him that Lucien is also after him. Realizing that he has been double crossed while double crossing the Hero, Reaver uses his escape tunnel, leading the Hero through the caves and fighting Lucien's men all the way to his escape boat. Getting to the other end, they are met by Garth and Hammer who Theresa had sent to wait there. Reaver tries to leave on his ship, which he named "The Reaver" (claiming that he would have named it The Narcisa but it has already been registered), but it is destroyed by a Great Shard, a larger and more powerful version of the normal shard. The Heroes destroy it by defending Garth from Spire Guards while he weakens the shard with spells.
Returning to Bower Lake, Theresa takes the four Heroes to the top of Heroes' Hill. She has them stand in precise locations in order to complete a ritual that will give the Hero a weapon that will stop Lucien. When the ritual is complete, a huge blast goes off and all the Heroes are temporally weakened; the weapon still hasn't appeared and Theresa is gone. Lucien however appears with his men who kidnap the three other Heroes. Lucien stays behind with the Hero and the dog, and pulls a gun on the Hero, saying that "The last time I killed you it tore my heart out". Lucien then fires, only for the Hero's dog to block the shot by jumping in the way, killing him. Unfazed by the heroic gesture, Lucien reloads his gun and shoots the Hero in the head.
The Hero is woken up by his sister Rose and finds that he/she a child again; the Hero spends all day playing with his/her older sister on their farm home. Going to sleep at the end of the day, the Hero is woken up by music coming from beyond the gate. Rose encourages him/her to go back to sleep; however the Hero runs out the door and through the gate. As Rose screams from far behind, the Hero runs down a path filled with dead corpses, at the end of which they find the music box that the children had bought from Murgo. There the Hero is shown his/herself as they changed throughout the journey; from child to teenager to Spire guard, to theirself now. Theresa informs the Hero that they have the weapon that they need, and all of a sudden the Hero is transported to the Spire where he/she finds Lucien draining the energy out of Hammer, Garth, and Reaver and about to make his wish.
Revealing the music box, all of the energy is drained out of Lucien, who tries to convince the Hero that he was only trying to save the world from all evil. As he talks on, the player can kill him with whatever they want. However, if they wait too long then Reaver will regain conciousness and shoot Lucien, thereby robbing the Hero of their vengeance, at which point he says, "Sorry, did you want to kill him?"
Either way, Lucien dies and Theresa appears in front of the Heroes revealing that the Spire can still grant a wish. She gives the player three choices - Sacrifice: All of the people who died in the Spire's making will be brought back to life, but the Hero loses the chance of seeing their family ever again; Love: The Hero's sister, dog, and family will be brought back to life, but their lives come at the cost of the countless innocents who died in building the Spire; or Wealth: The Hero will receive more gold than they could possibly imagine, to spend on whatever they want, but any they loved and all of the Spire's prisoners will remain dead. The player can then decide what the Hero's wish is. Theresa explains that from that room of the Spire she can teleport them anywhere, and offers to send the other Heroes wherever they want. Garth wishes to return to his homeland of Samarkand, with Reaver tagging along to find some "exotic substances" and "uninhibited people", though Garth insists that it's nothing like that. Hammer explains that she is still fond of fighting but has grown tired of killing things, and thus asks to be sent north to study with the warrior monks she has heard about, who fight as a means to enlightenment rather than for killing. She admits that there is nothing left for her in this land, but that she will be leaving behind her best friend. With all of the other Heroes gone, Theresa tells the Hero that the world is theirs to enjoy, but that the Spire is hers. From there she teleports the Hero out of the Spire and severs all communication with them.
Depending on the player's choice the hero receives a letter explaining how the people of Albion feel about them now.
Snag between the plots
There is a error made in the Chamber of Fate early in the game, regarding the Hero of Oakvale's second battle with Jack of Blades. When Theresa talks about the current Hero's ancestor she mentions that he battled Jack of Blades twice; once in the Chamber of Fate, and again when Jack reformed himself as a dragon. She said that not much is known about the battle, other than the fact that the Hero of Oakvale used the Sword of Aeons against him. This doesn't fit if Theresa is alive, as to keep the Sword of Aeons the Hero would have had to kill her. Also in the Chamber of Fate when you look around the room at the paintings recording his achievements, you see the good version of the picture marking the first time he defeated Jack of Blades, which also suggests that he choose to destroy the sword instead of killing Theresa. This can be explained as a mistake on the part of Albion's historians, who have been noted as being notoriously inaccurate, or it could be a mistake regarding their interpretation of the Sword of Aeons, which they may be confusing for the equally powerful and almost identical sword known as Avo's Tear, which the Hero of Oakvale may have used against the dragon Jack of Blades.