Shangri-La is an independent nation founded in the Kinani Desert, located in the very center of The Continent. It is north of Zeth, south of Helman, east of Pencilcow, and west of Leazas. It maintains a uniquely advantageous geographical position, since not only is it the only nation that borders every major human country (except JAPAN), but it also does not share a border with the Monster Realm thanks to the Crystal Forest.
Desert Guides traverse the harsh landscape to enact the nation's commerce. Shangri-La's economy is relatively strong, providing the rest of The Continent with several goods and resources unique to the desert.
The entirety of Shangri-La is located within the Kinani Desert, which is huge, dry, and one of hottest areas in the world. The desert also regularly experiences intense sand-storms, making it impossible for any outsiders to explore very far into it, which also serves as a natural defense. The city of Shangri-La is hidden deep within the desert and can only be found by casting secret enchantments that reveal passageways through the sand. Only its inhabitants know these enchantments and to divulge them is severely punished. Many nations have tried to conquer Shangri-La over the years, but the Kinani Desert's challenges have caused all to fail. They have a small army that is mostly composed of Desert Guides commanding tamed Desert Worms. They are decently strong for a guerrilla desert force, but otherwise not particularly powerful.
Upon first sight Shangri-La looks like a utopia. The city contains fresh water sources, opulent buildings, and beautiful citizens, a stark contrast compared to the surrounding desert. The palace holds regular feasts made up of exotic delicacies to celebrate the nation's fortunes. Shangri-La's history boasts an unparalleled history of safety from both Monsters and the armies of human nations.
The secret of Shangri-La's success, and the reason it was able to establish a thriving country in a dreadful desert, goes back hundreds of years. The first King of Shangri-La somehow captured the Holy Gal Monster, Housesnurse of the Earth, trapped her in a secret dungeon, and forced her to obey his commands. It is her power that is responsible for the desert sandstorms and the secret enchanted passageways. Centuries later, she still remains hidden and chained in an underground dungeon below the Royal Palace of Shangri-La.
Aside from the Desert Guides and King Descoco, there are no males in Shangri-La. The nation's populace is otherwise entirely composed of beautiful women. These women serve the King passionately without objection and run all affairs of the country. The women of Shangri-La all share the traits of selflessness, submissiveness, and obedience. This is due to King Descoco's secret: none of these women are human, but dolls given life with magic. All women in the country were either exiled or killed when Luce Descoco took power, with the help of a magical genie named Aladdin. Aladdin's magic gave rise to the current citizenry, a host of living dolls that exist to serve Descoco. The Kalar now live here after Rance conquered Pencilcow.
- In Kichikuou Rance, the player will still enter in the Creator Phase even if Shangri-La is independent, making it the only territory that does not have to be conquered.