The story begins with a man named Eriol, as he lands on the 'Lonely Island' mythical prehistory England. While traveling he stops at the "Cottage of Lost Play" a house owned by Lindo and Vairë elves. They tell him how they came to be there, and of a place called the 'Cottage of Children', a place where Children that had gotten lost in the woods could stay. Its caretaker left and the cottage was rediscovered by Lindo's father, and he took the children to this island, with him, and now Lindo looks after them.

The next day Eriol walks in the garden and meets the door man, and is told the story of "The Music of the Ainur". A creation myth where the creator sings into being immortal spirits, that with their help sing into being the world. One of these spirits becomes evil, and begins to dislike the two races that are placed within the world, Elves and Men. Some of the spirits decided to be caretakers for the world and broke up into two groups the Valor, care takers and the Maia, servants to them.

That night he asks to hear more stories, and is told "The Coming of Valor and the Building of Valinor". the care takers have their own parts of the world, but eventually get together and create a can all live in the world. They placed it on the war West of the world and they call it Valinor, all but the evil one decided to live there, he made his home in the mountains of the north.

Eriol soon wishes to stay on the island, but must get the queen's permission, but she tells him ...