Most of Final Fantasy VIII is set on an unnamed fantasy world. The setting is highly European in design and features a blend of modern and futuristic locales. The planet contains five major landmasses, with Esthar, the largest, covering most of the eastern portion of the map. Galbadia, the second-largest continent, lies to the west, and contains many of the game's locations. The northernmost landmass is Trabia, an Arctic region. Positioned roughly in the middle of the world map lies Balamb, the smallest continent, the island on which the game begins. The remaining landmass is small and mostly desolate, riddled with rough, rocky terrain caused by the impact of a "Lunar Cry", an event where monsters from the moon fall to the planet. The southernmost landmass includes an archipelago of broken sections of land that have drifted apart. Islands and marine structures flesh out the game world, and a handful of off-world locations round out the playable areas.
 
The six main protagonists of Final Fantasy VIII are: Squall Leonhart, a loner who avoids vulnerability by focusing on his duty; Rinoa Heartilly, an outspoken and passionate young woman who follows her heart; Quistis Trepe, an instructor with a serious, patient attitude; Zell Dincht, an energetic martial artist with a fondness for hot dogs; Selphie Tilmitt, a cheerful girl who loves trains and pilots the airship Ragnarok; and Irvine Kinneas, a marksman and consummate ladies' man. All but Rinoa are members of "SeeD", an elite military force based out of futuristic installations called Gardens. Temporarily playable characters include Laguna Loire, Kiros Seagill, and Ward Zabac, who appear in "flashback" sequences; SeeD cadet-turned-antagonist Seifer Almasy; and sorceress Edea Kramer. The main antagonist is Ultimecia, a sorceress from the future who wishes to compress time.