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Dragon Knight Byuu has fled the Kingdom of Khana in the wake of the invading Granbelos Empire. To pursue his evil goals of domination, Emperor Sauzer has kidnapped Princess Yoyo and is threatening the world's lagoons with his aims to unleash Bahamut's power. Now it rests on Byuu's shoulders to gather unlikely allies and harness the power of his dragons to stop Sauzer before his ambition plunges the world into darkness.
- Along with Front Mission, Bahamut Lagoon was scheduled for a 1996 North American release. However, Square's decision to jump ship to the PlayStation console for the continuation of the Final Fantasy series resulted in souring relations between Square and Nintendo, which was thereafter unwilling to undertake publishing duties for Square's games.