The computer game follows the main theme of the film and is set in "Fantasia", a world of the imagination facing extinction by the "All consuming Nothing", eroding its very fabric and condemning it to oblivion. It is in desperate need of a hero from the "Real World", someone to believe in it and thus renew its life.

That someone is a small boy, Bastian Balthazar Bux, who discovers a dusty old book on the shelves of an antique bookshop. The title is "The Neverending Story" and it chronicles the ever changing fortunes of the people of "Fantasia".

Bastian takes the book and blowing the dust from its jacket reveals the front cover depicting "Auryn" the silver and gold medallion symbolizing the strength of "Fantasia". On reaching school he avoids his teachers, climbs into an abandoned attic and setting himself down on an old rug begins to read the compelling tale.

The many peoples of "Fantasia" are gathered to seek audience with their Empress, but are dismayed to find her ill and weak. "Cairon", the physician gives them encouragement, telling of a hero, a small boy from the plains by the name of Atreyu - the only person who can find the saviour of "Fantasia". In the game you take the part of Atreyu and only through your endeavours will the kingdom be restored to its former glory!