Luka and Alice go to San Ilia after leaving Port Natalia. Luka goes to the castle to meet the San Ilia King, expecting him to offer advice for his journey. Prior to this, the San Ilia King was told by Ilias in a dream that he would meet an unbaptised boy named Luka. The king welcomes Luka and tells him to meet three wise sages and complete their task to obtain the Goddess Sword. Alice steps in and shatters the sword, sending the king into a delusional state. She tells Luka to seek out the power of the Four Spirits instead. A guard rushes in and is told that the Monster Lord is attacking, causing him to increase the castle's security.
Afterwards, Granberia shows up and challenges Luka. He manages to repel her after showing off his new techniques.
Luka and Alice visit the Underground Library to retrieve a book on the Four Spirits, though this involves fighting against the book's guardians and the library is accidentally set on fire by Alice.
Within the city, Luka acquires Sacred Anti-Ghost Water, notices a request coming from Port Natalia, and hears various rumors from the citizens about a Haunted Mansion. Additionally, Amira tells him that Sylph, the spirit of wind, lies within the Forest of Spirits.
After clearing the Haunted Mansion, the ghosts there begin invading San Ilia and treat it as a haven for them. Additionally, after Luka defeats the Chimera Dryad within the Forest of Spirits, the Fairies invade San Ilia and begin playing pranks on the citizens. As he sets off for the Safina region, Luka wonders if everything will be okay with undead souls and monsters invading a religious place.