Setting Destiny is set in the distant future, after an event referred to as the Collapse ended the Golden Age that was started by the discovery of The Traveler, and pushed humanity to the brink of extinction. The force responsible for the Collapse is known as The Darkness, and indirectly acts as the primary antagonist. Battles against the forces of The Darkness are fought at various locations throughout the Solar System.

Plot The game begins with the player's Ghost resurrecting them as a Guardian, after having been dead for an unknown length of time. The Guardian is quickly forced to fight Fallen who have inhabited the ruins of the nearby Cosmodrome in Old Russia. The Guardian, with the aid of their Ghost, is able to secure a jumpship and escape to The Tower that houses the Guardians on The City border.

After being outfitted and introduced to the Vanguard, and Gunsmith, the duo learn from Amanda Holliday that their Arcadia Class Jumpship is missing its Warp Drive, a component necessary for interplanetary travel. Due to the scarcity of the part and flyable jumpships in general, the Guardian is forced to return to where they found the ship in an attempt to find the part.