In his quest to reach the Tower of Fate, Shovel Knight has a run-in with his rival, Black Knight. In the ensuing battle, he takes a hit, and falls unconscious, coming to in a strange land. The Enchantress must be up to something really big now.

Tonight you will hear a knock at your door. Behind it lies an unimaginable horror. A horror that, should you wish to put right, you must take into your home. You must care for it, until you can undo the sick things done to it. Its name is Lyra.