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Mideel is a hot springs town in the southern part of the Planet in Final Fantasy VII, known for being a place where the Lifestream is close to the surface. It is located on a large island south of the eastern continent.
The party comes to Mideel to search for their lost leader, Cloud Strife, without even knowing if this person they have journeyed with since the events of Midgar is even the real Cloud, or just another Sephiroth Clone. Their lost comrade was last seen falling into the Lifestream at the Northern Cave, but since Mideel is close to the Lifestream, the party figures there is a chance Cloud might have surfaced there.
The town is shaken by a series of earthquakes when the party returns to check up on Cloud and Tifa. The Ultimate Weapon appears in the sky and the party battles it before it flees. A flow of Lifestream swallows the town and Cloud and Tifa are pulled into it where the two explore Cloud's Subconscious to unearth his true past and identity. They wash ashore and the others find them and take them aboard the Highwind, the recovered Cloud returning to the role of leader.
The player can find a Cursed Ring in town before it is destroyed. One must first examine the back door of the Weapon Shop before the key can be picked up. Then, cross the bridge to reach just outside the Accessory Shop, and examine and pick up the "Beat-Up Useless Old Key" on the floor of the wooden pathway adjacent to the shop when hearing a screechy sound. The pathway is also behind the silver haired old woman wearing purple clothing (she mentions about a kid who got a green stone from that Chocobo). Use the key on the back door of the Weapons Shop and choose the option "Tell them the truth!". He will give the player a Cursed Ring.
A small white chocobo follows the busy shopper found in all the shops before Mideel's destruction and on the ledge on the very left side of village post-destruction. Giving it Mimett Greens (can be bought from the Chocobo Farm) and scratching it behind its ears nets the Contain Materia.
Before the town's destruction the player can find a busy shopper in all the shops. Post-destruction the other shops lose most of their stock, but the previous busy shopper will sell the party all of the previously available stock at the same price.
When spoken to in his delirious state, Cloud will mutter on about Xenogears, another RPG that was in development at the same time as Final Fantasy VII. Xenogears also includes a reference to Final Fantasy VII by displaying a poster of Tifa in one of the in-game areas.
According to Final Fantasy VII Ultimania Omega, Cloud's rescue scene was originally planned to be even longer; after washing up on the shore of Mideel with Tifa, Cloud would have been unconscious and Tifa would have had to revive him with CPR. During this stage Cloud would have a vision of being experimented by Professor Hojo in Nibelheim, and of his escape with Zack. The scene was moved to be viewed in the Shinra Mansion basement in the game's final version.