The game follows the story of Ryu, the protagonist who belongs to the "Dragon Clan," a race of dragons with the ability to transform into powerful dragons. The game begins with Ryu hatching from a dragon egg, and his adventure begins as he seeks the truth about his origins and what happened to the Dragon Clan in the past. Breath of Fire III retains the traditional JRPG format, where players explore the world, engage in turn-based battles, and solve puzzles within dungeons. One of the game's highlights is Ryu's ability to transform into dragons using the "Dragon Gene" system, allowing players to combine various dragon genes to create different dragon forms with unique powers.