Centuries ago, the continent Elibe was ravaged by the Scouring, a war between humans and dragons, resulting in the dragons being banished to another world. Now, another war has begun with Zephiel, ruler of the Kingdom of Bern, who declares his intent to conquer all of Elibe. True to his word, his armies soon begin attacking neighboring countries. In one of these countries, Lycia, a courageous and reckless boy named Al lives in isolation in the mountains with his father, a blacksmith.

On a whim, Al decides to leave home and go on a journey to see the world. He arrives in a city occupied by Bern's army and meets Gant, a knight who is serving Bern in return for the safety of his liege, Princess Tiena of Tania. Al and Gant team up to fight the occupiers and then escape together. Gant recognizes the sword Al was given by his father as a relic from the time of the Scouring, and tells him that it could have a connection to the Fire Emblem, a power capable of defeating dragons. Al decides that he wants to find the Fire Emblem, but before doing so he must rescue Princess Tiena.

Fire Emblem: Hasha no Tsurugi, which was serialized in Shounen Jump, is a side story of the Game Boy Advance game Fire Emblem: Fuuin no Tsurugi (known in the West as Fire Emblem: The Binding Blade). It follows a cast of original characters whose paths occasionally cross with Roy, the protagonist of the game.