Tales of Graces takes place on a planet known as Efinea. The people of Efinea use a substance called Arles which is composed of another substance called Cryas which has allowed civilizations on the planet to flourish. On Efinea there are three kingdoms—Windol, Strata, and Fendel—who are competing for dominance of the planet.
In the remote region of Windol lies the city of Lhant. The eldest son of the feudal lord Aston, Asbel, is a bright and cheerful boy who spent his childhood like any other carefree boy does: enjoying everyday together with his irreplaceable friends. After a certain incident awoke a new desire in Asbel, he decided to enlist himself in a knight's academy in the capital in order to gain the power to protect others.
Graces takes place seven years after the incident. In his eighth year, Asbel has grown up and established himself as a fine knight. However, at the death of his father, Aston, he gives up his dream to become a knight and takes over his father's position of a feudal lord.