Faxandu is for the Famicom and NES. The name was licensed by Falcom and was developed and released in Japan in 1987. Nintendo also released the game to the world market in 1990. It can be considered a side-story of Xanadu, which is the second installment of Falcom's long-running RPG series, Dragon Slayer. The title is a combination of "Famicom" and "Xanadu"

The player-controlled protagonist of is an unidentified wanderer. He has no name, though the Japanese version allows the player to choose one. The game begins when he approaches Eolis, his hometown, after an absence to find it in disrepair and virtually abandoned. Worse still, the town is under attack by Dwarves. The Elven king explains that the Elf fountain water, their life source, has stopped and provides the protagonist with 1500 golds, the games currency, to prepare for his journey to uncover the cause. As the story unfolds, it is revealed that Elves and Dwarfs lived in harmony among the World Tree until The Evil One emerged from a fallen meteorite. The Evil One then transformed the Dwarves into monsters against their will and set them against the Elves. The Dwarf King, Grieve, swallowed his magical sword before he was transformed, hiding it in his own body to prevent The Evil One from acquiring it. It is only with this sword that The Evil One can be destroyed. His journey takes him to four overworld areas: The tree's buttress, the inside of the trunk, the tree's branches and finally the Dwarves' mountain stronghold.