In Wasteland Fairy Tale the protagonist, a battle-hardened Little Red Riding Hood, slays two colossal werewolves in combat. Her commanding officer, "Mother," permits her to return to Spire Town to visit her grandmother. The game chronicles the harrowing events she encounters during this single-night journey.

The story unfolds in a nation gripped by internal collapse and external invasion. Externally, the country faces threats from the Oceanic Empire’s vampires and the Eurasian Federation’s werewolves. Internally, endless war has ignited widespread civil unrest, compounded by a corrupt, oppressive government, pushing the nation to the brink of ruin. Amidst this abyss of despair, Little Red Riding Hood fights tirelessly to uphold her duty and protect what remains of her homeland.