
Seeking to set things right, Spyro sets out to free all of the dragons. However, Gnasty Gnorc misses imprisoning the youngest dragon in the realm, Spyro (who was seen chasing sheep in the background during the dragons' documentary shoot), because of his small size. While in exile, Gnasty Gnorc has experimented with magic and on this fateful day, he decides to unleash two of his most powerful spells vengefully: one which freezes all the unsuspecting dragons inside crystalline statues and another which transforms a portion of the dragons' treasure into an army of gnorcs. Little do they know, Gnasty Gnorc (pronounced Nasty Norc), whom they previously banished from the Dragon Realms long ago to the Dragon Junkyard, somehow overhears their derogatory comments about him and becomes quite upset. The adventure begins in the Artisans homeworld in the Dragon Realms (presumably Spyro's home) in Stone Hill on the day where the elder dragons, Astor and Lindar, are being interviewed for a video documentary about their world.

Artisans - The homeworld of the artistic dragons.

It contains six homeworlds, the first five of which are named after the dragon clan that resides there: The game takes place in the Dragon Realms, a sprawling world of much topographical and biological diversity, ornate structures and abundant treasure.
