Hidden Wonderland drew inspiration from The Peach Blossom Spring, a fable by the well-known Chinese poet Tao Yuanming. The game is set in the late Tang dynasty following the An Lushan Rebellion when the country was ravaged by competing warlords. To flee the war, civilians come to a valley to build a new home.

In the game, the player assumes the role of village head who sends villagers to gather resources, manages labor, grows the population, establishes a village for survival step by step, and gradually turns it into a paradise.