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Ancient Atlantis was a small continent located in the Atlantic Ocean between North America and Europe, which sank beneath the sea approximately 20,000 years ago. The continent of Atlantis boasted 1 of the most highly advanced civilizations of its age. During the last 500 years before its sinking it became the center for many occupations, including alchemy. There were several different groups of sorcerers in ancient Atlantis, including the Darkholders who created the first vampires, and the followers of Zhered-Na (including Dakimh the Enchanter), a "white" school of magic. The state of magic in the old empire was great and it is quite possible that many of the more powerful spells existing today were first created or researched there.

Since the sinking of Atlantis few new inroads have been made into the mystical arts by its later inhabitants. The important magical artifacts, like the magical Sword of Kamuu, were created before the land sank. Alchemy eventually blended with science and technology until little was left of the arcane abilities within the civilization itself. Still, Atlantis was a wondrous land of magic before it sank and its ruins are many. Additional items, tomes, and alchemical potions may be buried beneath those ruins, waiting for someone to utilize them once again.