Victory and Defeat continues the story of Flaranthlas Eldanari. Flare is a half-elven warrior who has gone against the Church of Adel by learning magic, sorcery, and wizardry. The Church will do anything to keep Flare from restoring the Dragon Order and thereby fulfilling the ancient Kelcer prophecy.

Flare leads a small group of Guardians to Elem. Their goal is to find the ancient shield that is one of the last remaining signs mentioned by the Kelcer prophecy.

Unbeknownst to Flare's group, there are others searching for the shield. In addition, the Church of Adel is fighting feverishly to keep the shield hidden.

A second group returns to the capital city of Telur. Their mission is to convince the king that he has been deceived by the church.