In 740 AD, in England, the mighty magician Merlin has three apprentices; Balthazar Blake, Veronica Gorloisen and Maxim Horvath. Horvath betrays his master by joining forces with the evil sorceress Morgan le Fay. Morgana mortally wounds Merlin before Veronica is able to rip Morgana's soul from her body and absorbs it into her own. As Morgana attempts to kill Veronica by possessing her from within, Balthazar stops her by imprisoning Morgana and Veronica in the "Grimhold", a magic prison in the shape of a nesting doll. Before dying, Merlin gives Balthazar a dragon figurine that will identify the Prime Merlinean, Merlin's descendant and the only one able to defeat Morgana. While he searches for his descendant throughout history, Balthazar imprisons Morganians, sorcerers who try to release Morgana, including Horvath, into successive layers on the Grimhold.