1983, Tibet. A weary traveler approach a figure standing on the peak of the mountain. "You shall become human again..." - says the man. Then we see that it was a woman he spoke to - a beautiful woman with a third eye on her forehead...

Long ago, a powerful race called Sanjiyan, the Three-Eyed Ones, came to existence. Those were humans who discovered the secret of eternal youth, and therefore ceased to be humans. They controlled people and made some of them to Wu - obedient immortal servants without their own will. One girl stand up against this, a Sanjiyan named Parvati. She destroyed the leader of Sanjiyan, the terrible Kaiyanwang. She tried to forget the past, living in a secluded area in Tibet under the name Pai. A Japanese scientist Fujii met her and tried to help her to become human again. But Fujii died, and only a letter to his son was left. Pai went to Tokyo and met Fujii's son Yakumo, a careless teenager who was working as a cross-dressing waiter. When her pet monster bird attacked Yakumo, she saved him by using the power of her third eye. But after Yakumo made contact with the mysterious power of the Third Eye, he lost his true human nature and became her Wu! Now their destiny is tied together, when they try to regain their lost humanity and prevent Kaiyanwang's Wu, the cruel Benares, to resurrect his master.

Seima Densetsu, The Legend of the Divine Demon, is Sega's RPG entry into the library of games based on the animé series 3x3 Eyes. The game attempts to include the entire story of the manga and animé, from the moment Yakumo first met Pai to the final confrontation, incorporating different story arcs, some of which are unique to this game. The game is a traditional Japanese-style RPG with turn-based combat. Players select attacks from a menu, viewing the battle from first-person perspective, and the executions of the attacks are shown as animated platform sequences. The game features an animé-style intro and cut-scenes with voice-overs for important characters.

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