Ilias Village is the first stop on Luka's journey. It is where the player is introduced to the narrative after Ilias informs Luka of his duties. Slime Girl attacks here, and after meeting Alice in the local woods, Luka has had no reason to return to Ilias Village for any reason on his journey.
According to Luka's flashbacks, the villagers were originally hostile towards him and his mother, the populace being very xenophibic towards outsiders. Whether this is due to their faith in Lias or otherwise, the relationship between Luka and the rest of the village seems to have improved at the start of the game.
On the outside the village looks like a typical sleepy settlement where not much happens. However, the most devout location to Ilias's following, the Shrine of Ilias in the center of the village. It is here where Ilias appears to bless her heroes and as a focus of her religion it is likely that Luka will be back here in Chapter 3.
As it is the location furthest south and due to the more focused worship of Ilias, it can be seen as a direct contrast to the Monster Lord's Castle, the supposed final location of Luka's quest to defeat the Monster Lord.
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