Miscellania Castle is the residence of King Vargas, ruler of the small island-kingdom of Miscellania, neighbour to the smaller island town Etceteria. Both towns are small and cramped, each with a castle that acts as a home for many of the island's inhabitants. The courtyard of the castle also holds other small residential houses and stalls, including Greengrocer of Miscellania and Island Fishmonger. The Castle itself has three floors, the ground floor where the servants (Einar and Thorhild) dwell, the first floor, which houses the island's Monarch, King Vargas, his personal advisor, Ghrim, and his son and daughter, Prince Brand and Princess Astrid, and the second floor, which consists of two towers emblazoned with the flag of Miscellania.
Due to King Vargas being transformed into a yeti, he is not fit to rule his country and the player must help him, which leads to the quest Throne of Miscellania. Afterwards, the neighbouring kingdom of Etceteria, who has always had a bitter rivalry, is at war with Miscellania, despite neither of the nations having a military. The player must help out the two islands and bring them closer together in the quest Royal Trouble.