The Panzer Dragoon series takes place on an unspecified post-apocalyptic planet where the people compete for land, resources, and the technology of the Ancients. The ‘Ancients’ is the generic name given to the people that once controlled a world spanning, hyper-advanced civilization thousands of years before the start of the Panzer Dragoon series of games. The Ancients were able to create monsters either for war use or practical uses.

These creatures survived the downfall of the Ancients and are one of the main enemies in the series. A mysterious cataclysm, hinted at as a terrible war during the course of the series, would spell the downfall of this civilization and nearly destroy the world, leaving the survivors to eke out a bleak existence among the blasted remains in the ensuing millennia. Eventually, the Ancients and their works would gain a sort of 'godlike' respect, and a horrific regard, among some people as they passed into legend.

The remnants of these technologies are used in the development of much of humanity’s own machinery, weaponry and vehicles, such as the unusual floating ships which are a staple of the series. A faction called The Empire have collected and used weapons from the Ancient Age to gain dominance of the continent.