Ember is a mysterious ore which has the power to imbue people and items with magical power. The mining boom town called Torchlight is built above a rich vein of Ember, and adventurers are drawn there seeking the magical substance and the enchanted items it creates. However, as the player character explores the dungeons below Torchlight, they discover that Ember has a corrupting influence which led to the fall of past civilizations and endangers those who use it in the present.

The player character arrives in town and is recruited by Syl, a sage who is searching for her mentor, an alchemist named Master Alric who has disappeared in the nearby mine. At the bottom of the mine tunnels, the player finds a passage into older, crypt-like chambers below, eventually discovering that the entire dungeon is a “layer cake of ruined civilizations.” Alric ambushes the player and reveals he has become evil due to the corrupting influence of Ember. After fighting a series of monsters and henchmen to reach the bottom of the dungeon, the player must face Alric and an ancient creature named Ordrak who is the source of the Ember’s corruption.