The story takes place in a world after the "Creator" has passed away. He left humans 6 types of magic and 7 wands. The Sages given the 7 wands were called "Guardians of the World", and they carried on the task of protecting order in the world. Thousands of years have elapsed since The Creator passed away. The task entrusted to the "Guardians of the World" continued to be passed on from teachers to students, along with the Magical Wands. People knew nothing except Peace. However, the world was changed by one thing; People, who forgot how to revolt against their destiny, lost all their hopes, and became trapped inside deep despair. Amidst the chaos in the world, only one small light of hope remained; The boy with the "Wand". His journey begins now.

In Lost Magic the player controls Isaac, a young Wizard who initially sets out looking for his missing father. Soon his investigations uncover a threat to the world by the evil Diva of Twilight.

Lost Magic is a game that where the primary focus is combat, with little in the way of exploration to interrupt the main theme of the game. The stylus is used to direct the player's allies, (monsters captured by Isaac)and to cast spells.

The focus of the game is capturing monsters to later help the Isaac defeat the more powerful foes. Up to 400 different spells can be cast, many in combination with others to create new effects. The challenge lies in using the stylus quickly and accurately to not only combine these spells, but to effectively direct the real time battles.

The game supports Wi-Fi as well as both single and multi cartridge versions of multiplayer.