The game was originally going to be made as an expansion for The Elder Scrolls II: Daggerfall, but was eventually made into its own game.
The game is a Survival Horror and a Role-playing game. The aim is to find Mehrunes the Dragon, while surviving from enemies in the Realm of Oblivion.
The Apprentice is about to take his final test in the Battlespire Academy, but finds that an army of Daedra have invaded and killed nearly everyone there, with his friend being held captive by their leader, Mehrunes the Dragon. The Apprentice travels through the realm of Oblivion to find and kill Mehrunes the Dragon. After killing him and rescuing his friend, he escapes to Tamriel.