Each character has an LP meter, and getting knocked down reduces the bar. The LP meter is another unique system in Romancing SaGa 3. The level-scaling system balances the game by scaling the enemy strength depending on the character stats. More so, these characters upgrade their skills by being repeatedly used. The more the player uses a certain character on the battle, the better that character becomes in combat. This system deviates from the traditional level-up system that Square Enix is famous for. The activity-based progression system encourages players to use specific characters, as well as train on specific skills. Player choices and sidequests affect the outcome of the story. There are also friendly NPCs that players can recruit to their party. Upon picking one character, the other characters will join the party along the way. These characters are the swordsman Julian Naul, the merchant Thomas Bent, the marquis Mikhail Ausbach von Loanne and his sister Monica Ausbach, the bodyguard Katharina Lauran, and the mercenary Harid and siblings Elen and Sarah Carson.

Players select eight characters with different adventures to conquer.

The game takes place on the third Rise of Morastrum, and there can be only one savior or destroyer of the world. The first survivor 600 years ago was an Archfiend who ruined the world, while the second one became the holy Matriarch who saved the world and overthrew the great evil.

Every 300 years, a supernatural phenomenon called The Rise of Morastrum causes the apocalyptic Death Eclipse, and anyone born from that day dies with only one survivor who becomes a ruler. Romancing SaGa 3 retains its original plot and fundamental gameplay.

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