The storyline weaves together werewolf mythology and Bavarian history with sexual intrigue and businessmen's quest for their primal roots. The game's two lead characters are Gabriel Knight—the seemingly less-than-bright but smart-as-a-fox mystery writer and bookstore owner—and Grace Nakimura, his less-than-trusting assistant. Knight has inherited a castle in a small German village and the title of Schattenjäger ("shadow hunter" in German) that comes with it. It has been a year since the voodoo murders case (Sins of the Fathers) and the local villagers implore him to investigate the mysterious death of a little girl—caused, they believe, by a werewolf. Knight and Nakimura's search for clues takes them to Munich, King Ludwig II's famous Neuschwanstein Castle, Altötting and Bavaria's forested countryside. Their efforts lead them to uncover the truth about King Ludwig's mysterious death and discover a lost Richard Wagner opera, written by Robert Holmes (composer of music in the game).
Babe is a little pig who doesn't quite know his place in the world. With a bunch of odd friends, like Ferdinand the duck who thinks he is a rooster and Fly the dog he calls mom, Babe realizes that he has the makings to become the greatest sheep pig of all time, and Farmer Hogget knows it.