- "Not only have you shamed yourself--and us--but I am told you have lost the King's Sword, the symbol of the alliance..."
- — Prince Morley
The King's Sword is an important weapon that serves as symbol for the alliance between Ludia and the Empire. The original sword was crafted by a blacksmith in Mt.Glom.
Story
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The original King's Sword was given to Cray, the chief of the Woren. After the sandflier was attacked by Sa Ryong in the initial cutscene of the game, Cray gives Nina the King's Sword as a means to defend herself as she sets out to procure parts for her broken sandflier. Nina gives the sword to Ryu who then uses it as his standard weapon.

When Nina is ambushed by Rasso, a military captain of Empire in the town of Sarai, Ryu rushes to her aid and swings the sword at Rasso. He wounds Rasso's face but the sword breaks in the process and both Nina and Ryu flee the scene.
After traversing the Causeway and entering the Aqueduct, the party is caught by Yuna and transferred back to Ludia in the East. Cray is interrogated and held in custody by the Ludians.

Ryu and the party then proceed to Worent and from there, subsequently to the Gold Plains, to seek out advice from Cray's mother Tarhn. Upon mentioning the Broken Sword, Tarhn advises the party to head to Mt.Glom in order to talk to the blacksmith. Upon doing so, the party decides that a replica needs to be crafted as a surrogate for the broken sword. They gather a Faerie Drop after the events in Wychwood and forge the copy of the sword.

Upon their return to Ludia however, the party learns that Empire has returned the original King's Sword in it's broken state. Prince Morley is not amused after he learns that the original King's Sword was broken. He had to make concessions to Empire in the form of giving away territories for a "neutral" zone between both the West and the East in order to appease them and maintain the alliance. Cray remains in custody and the sword is not accepted. The party frees Cray during the night and flees from Ludia.