Xuan-Yuan Sword VII is an ARPG rooted in Chinese history and mythology. Players take on the role of Taishi Zhao, a calm and reliable swordsman who was accidentally involved in a tragic fate. To protect his beloved family, he starts a journey in this chaotic realm to find the truth.

At the end the Western Han Dynasty, Wang Mang, the regent of Han, seized the imperial throne and established the Xin dynasty. During this time, various auspicious signs as well as ominous phenomenons, such as the unearthing of a stone bovine and a white stone carved with writing, and the discovery of ancient tombs were prevalent.

A peculiar bamboo scroll was unearthed from the tomb of the Marquis of Liu, and was swiftly delivered to the court astrologer. Unexpectedly, on the night the scroll was received, a fire broke out, and all within the court astrologer residence perished. The scroll also vanished without a trace.

Ten years had gone by, but the prosperous era foretold by the mysterious omens did not come to pass. Numerous natural disasters tormented the commonfolk, and many rose up in rebellion. Just then, the scroll that disappeared more than a decade ago resurfaced, ushering in a turbulent time anew.