Ace Combat 7 is set in the series' fictional universe of Strangereal, where Earth has entirely different nations, geography, and history. The game's story details the 2019 Lighthouse War, fought between the Osean Federation and the Kingdom of Erusea in the continent of Usea.
Players control a culture who have rediscovered the lost plans for a flying city that can visit and trade with Earthbound cities. The city begins as a flying town center, and players build from there. Heavy buildings increase the need for lift, and construction must be balanced to avoid tilting the city.