Set half a century after the ending of Fable II, the third part sees the fantasy kingdom of Albion dramatically changed. The scientific progress has come, bringing new machines, factories, firearms, gaslight, steampunk aesthetics and a new way of life. And the Industrial Revolution is about to provoke the actual revolution. Too many people in the kingdom are not content with the changes and are about to overthrow the current king, who is also the main character's brother. Unlike the previous game, you are an aristocrat from the very beginning. It is up to you to take action and save your homeland this way or another, and it depends on you if your character is remembered as a wise and just leader or an evil tyrant.

The plot is non-linear, so the player's actions and decisions can influence not only other characters' perception of him but also the world in general. Compared to Fable II, social interactions with NPC became simpler and more straightforward. It is usually enough to be nice to people to make them like you, or even fall in love with you. To make an engagement, however, you will have to complete certain quests.