PAL is in most ways a traditional Japanese-style role-playing game. The player orders each character in battle, choosing attacks, items, and techniques. Equipment upgrades are represented as scrolls, and techniques can be upgraded as they are used. Kaoru's boyfriend, Yukito is also an excellent cook and can learn a wide variety of recipes to create recovery and assist items for use in and out of battle.

One rainy day, a shy young girl named Kaoru was walking home from school. Near her house, she found a puppy abandoned in a box. She rescued the puppy, naming him "Pal", and cared for him dearly. However, not long after, the prophet Nostradamus, having waited hundreds of years searching for the one who will finally make his predictions come true, has finally found the one he's been seeking.

It just so happens that this person is none other than Pal's owner, Kaoru. Nostradamus sends his servants, who kidnap Kaoru, leaving Pal all alone. The Seven Gods of Luck, taking pity on Pal, grant him a rare gift: a Fruit of Evolution. Eating it, Pal transforms into a human. Together with Kaoru's boyfriend Yukito and two lesser gods who work for the Seven Gods of Luck, Pal sets out to rescue Kaoru and stop Nostradamus!