Fable begins with the player character as a child in Albion. The character discovers heroic powers early in life. After a time jump, players continue as the adult hero in their home village of Briar Hill. A stranger turns the hero’s grandmother and the village to stone, prompting the hero to leave and investigate what happened.

Players can travel freely across the map, including southern villages and northern regions. Key locations include the capital Bowerstone, which contains Fairfax Castle and the Heroes’ Guild. The Heroes’ Guild appears as a point of interest in the early story. The setting is described as a fairy tale world rather than a traditional fantasy game. This version of Fable does not continue the previous games’ storylines, but some elements of the original lore and the concept of Albion are included. Player choices affect relationships with non-player characters, story outcomes, and how the world responds to the hero.