It stars Desmond, the hero of the first two games, who immediately after the start of the game, gets robbed of his gems, sword and clothes because he refused to fight the bandits because he only draws his sword in face of real evil.
For the most part of the game you try to retrieve your Falcon Sword and Genji Armor, along the way you meet some old and new friends, lots of demons and, of course, many pretty girls. Of course there is more than just some equipment hunt. After all the demons are causing a lot of trouble...
This game provides examples of:
- Adjustable Censorship: Two versions of Knights of Xentar were released in America: one with an NR-13 rating (for ages 13 and up), and one with an NR-18 rating (for ages 18 and up). The NR-13 version censors the genitalia on the women and also censors some of the dialogue.
- The Anime of the Game: Dragon Knight, Dragon Knight Gaiden, and Dragon Knight: The Wheel of Time were OAVs loosely based on the game series.
- A Taste of Power: Even though you lose your equipment before you can get control, Desmond's still overleveled and can beat anything in a flash. After the first town, however, you're forced back into level 1.
- All There in the Manual: The manual has the plots of the first two games, which never left Japan, summarised. The game even tells you to check it at a few points.
- Bag of Spilling: Justified: You start out at low-middle levels and with the most powerful sword and armor, but you are robbed at the start of the game and weakened shortly after, through some kind of demonic object.
- Battle Theme Music: There are three normal battle themes, one boss battle theme (played only in two battles, though) and a final boss theme.
- Breaking the Fourth Wall: At one point the heroes discuss the upcoming sequel Dragon Knight 4.
- Cat Girl: There is an entire town of catgirls appropriately called "Feline Farms".
- Caught with Your Pants Down: An optional scene where you meet a woman in a forest. She is so embarrassed, she threatens to kill herself if Desmond doesn't, ahem, give her some blackmail material. And then Desmond also gets caught—by his party this time.Luna: Look, he's pointing north!
- Class and Level System: As in many Japanese RPGs each party member is his own unique class.
- Cutscene Boss: Desmond confronts Arstein. Arstein casts an attack spell at Desmond. Desmond strikes Arstein before the spell can land. Desmond wonders why Arstein did not properly defend himself against the strike. Arstein admits he allowed himself to be struck, and dies from the wound. This type of dueling is never brought up again, and the next battle involves regular combat.
- Dub Name Change
- Takeru -> Desmond
- Baan -> Rolf
- Alsteen -> Arstein
- Informed Equipment: Averted. However, it can be invoked literally...
- Foreshadowing: Happens during Alice's scene. The Pearl of Sorrow's seal can only be undone by the son of a god, or through sex. He never does get it on with her.
- Fractured Fairy Tale: Clara is involved in a different version of The Big Bad Wolf.
- Gameplay and Story Segregation: The One-Hit Kill duel with Arstein ignores the RPG combat system.
- Gargle Blaster: "Brandy, grog and fried pig gristle. Never again. At least, not in the same glass."
- Guide Dang It!:
- Getting the Mystic Marble in Dreadsden can be quite tricky.
- You get only one of Luna's spell gems during the main quest. To find the rest, you need to do things like looking into a specific jar ten times or spend 50,000 sovereigns in a specific shop, then another 50,000 on the gem itself. The game doesn't even hint that either the jar or the shop is special in any way.
- H-Game: Rather softcore, though.
- Healing Potion: Three kinds, one of them heals the entire party.
- Honor Before Reason: The reason why you are totally naked at the beginning of the game.
- Lady Land: Arcadia, a city where all the inhabitats are women.
- Let's Play: Unfinished and very obviously NSFW.
- Market-Based Title: Because of legal issues involving the name Dragon Knight, Dragon Knight 3 was released in the US as Knights of Xentar. The OVA Dragon Knight Gaiden was released as Dragon Knight: Another Knight on the Town.
- Mrs. Robinson: In a city of nudists one crone insists that experience is more important than youth. Or good looks. Heroes disagree.
- Mysterious Parent: Desmond is actually the son of the goddess Althea.
- Never Trust a Trailer: The US preview describes the idyllic Strawberry Fields being attacked. Desmond does not visit Strawberry Fields in this game, because this already happened in the previous game, Dragon Knight II.
- No Celebrities Were Harmed: Two of Desmond's "exploits" are modelled after "Snow White" and "Little Red Riding Hood".
- Nude Apron: Luna wears one in "Where Are They Now?" Epilogue.
- Only Mostly Dead: Averted. If one of your party members dies, it's game over.
- Optional Sexual Encounter: Not surprisingly, there are several and not all of them are optional.
- The Pornomancer: Gods blessed Desmond to never go without a bed to sleep in. They didn't foresee the... interesting results.
- Post-End Game Content: After beating the game, activating the Mirror of Illusion unlocks the gallery mode. The NPCs have new dialogue when revisiting all of the towns.
- Pun: The House of Horrors. It's not a haunted house.
- Rape Is a Special Kind of Evil: While most of the H-scenes are played for laughs, the game takes a very serious turn after the attack on the fairy village.
- Really Gets Around: Desmond.Althea: "That blessing so you'd never be without a bed to sleep in certainly had some interesting side effects..."
- Real-Time with Pause: It was an Ur-Example of a pausable real-time combat system.
- Say My Name: One of the most memorable gags in the game.Desmond: Luna!
- Stacy's Mom: Desmond likes Luna's mother almost as much as Luna.
- Supernaturally Young Parent: The goddess Althea you meet near the end looks no older than most girls in the game. She is Really 700 Years Old and the mother of the hero, Desmond.
- Take That!: In one scene, Desmond rants about TSR's Dragon Knight trademark, likely referring to the 1990 Dragonlance adventure Dragon Knight, published a year earlier than the Japanese release of Dragon Knight 3.
- You're Not My Type: One character responds to the seductive advances of a Cat Girl with "Sorry, not my type. Or species."