The Lake Shrine was a great palace built on the Lake to the north west of Inoa Village. After Melzas took control of the King of Torla, he had the palace built for his residence, and for his followers to worship him within. However, after the King realized what Melzas was, and what he was doing, the King ordered the Shrine become his tomb. The Shrine was sunk beneath the Lake, and the seal split into seven jewels, which became known as the Crests, and entrusted to Seven Wise Sages.
After almost a hundred years, Alundra retrieves the seven Crests, and raises the Shrine to confront Melzas. The Shrine contains the many rooms expected within a palace; many bedrooms, a library, kitchen, and many more. It is uncertain what happened to those that once resided within, however these people could have been transformed into the creatures within, or simply have fled before the Shrine was sealed.
After placing the seventh crest, a large high-medieval, western palace rises from the waters. The Shrine is heavily damaged, and some areas remain flooded. Approaching the Shrine presents the first of many challenges Alundra must face; the palace is protected by a high wall and sturdy door.
However, part of the floor on the east side has collapsed, allowing Alundra to sneak inside. Once within, Alundra must lower two sets of barriers in order to reach the chains that lock the gate in place. After deactivating the two barriers, and loosening the chain, the gate opens, allowing access within.
However, the door to the palace is still sealed, and Alundra must traverse a hedge maze within the palace grounds. The grounds also feature two shrines; one will restore Alundra's health and magic, the other provides a teleport pad to Inoa Village. Whether anything is meant by this connection, or if it is simply for gameplay purposes is not clear.
After activating two switches around the grounds, the door will open, allowing Alundra to enter the Shrine. The entrance hall contains six large, raised basins, flanking a door to the main chamber of the Shrine. Within, Melzas lies in wait. Rather than facing Alundra, he uses his power to stop time within the Shrine, and throws Alundra out, sealing the door.
Alundra must now traverse the halls of the Shrine, and reactivate the east and west clock towers. Doing so will restart time, and allow Alundra to reach the six switches that allow Alundra to face Melzas. The puzzles are complex, often controlled by hidden timers, and the enemies throughout the Shrine are powerful. Alundra must use many paths and backtrack often to reach the switches, ranging from the basements, bedrooms and even the roofs of the Shrine.
After reopening the door, Alundra faces Melzas once more. Rather than face the Dreamwalker directly, Melzas sends his Dragon against Alundra. After destroying Melzas' bodyguard, Alundra confronts the demon and duels him, first in his physical body, before the demon draws him into its mind and tries to destroy him once and for all. However, Alundra triumphs, and burns Melzas' body, destroying the demon forever.
With Melzas dead, the Shrine begins to collapse, forcing Alundra to flee.
|Alundra – Meia|
|Beaumont – Bergus – Bonaire – Elene – Fein – Giles – Gustav – Jess – Kisha – Kline – Lutas – Meade – Myra|
Nadia – Naomi – Nestus – Phineas – Rumi – Septimus – Sierra – Sybill – Talis – Thyea – Wendell – Yuri – Yustel
|Berue – Cephas – Jaylen – Jeal – Keysmith – King Miming – King Snow – Kōhei – Lars – Lurvy – Lyman|
Melzas – Merrick – Nava – Nirude – Olen – Ronan – Stenia – Uma – Vul – Wilda – Zane – Zazan – Zorgia
|The Klark – Inoa Village – Tarn's Manor – Coal Mine – Lars' Crypt – Despair Desert – Ancient Shrine|
Coastal Cave – Reptile Lair – Magyscar – Sanctuary – Underground Waterway – Nirude's Lair
Fairy Pond – Murgg Woods – Tower of the Great Tree – Torla Mountain – Nava's Keep – Lake Shrine
|Crest – Dreamwalker – Gilded Falcon – Gazeck – Guardians of the Seal|
Life Vessel – Magic Seed – Murgg – Teleport Arch – Zolist
|Enemies – Equipment – Items|
|Tarn's Manor – Wendell's Dream – Olen's Nightmare – Coal Mine – Lars' Crypt – Bonaire's Dream|
Ancient Shrine – Coastal Cave – Kline's Nightmare – Reptile Lair – Giles' Dream – Magyscar – Sanctuary
Meia's dream – Underground Waterway – Nirude's Lair – Fairy Pond – Elene's Dream – Murgg Woods
Tower of the Great Tree – Torla Mountain – Nestus' Nightmare – Nava's Keep – Lake Shrine
|Airship – Kindra Forest – Mt. Sparrowhawk – Tortuga Beach – Ox Tank – Howling Cave – Dun Webb|
Gold Badge Testing Center – Beneath Milena's Mansion – Underwater Cave – Sunk Ship – Siren Ruins
Eden Ruins – Paco Ruins – Demon Whale – Varuna Dungeons – Church of the Key – Turnkey Dam
Mount Firedrake – Underwater Passage – Dark Isle – Dragonia – Old Varuna Ruins – Star Key