Cecil Harvey and Kain Highwind were ordered by the King of Baron to deliver the Carnelian Signet here. On the way, they had to fight their way through the Mist Cave and defeat the village's guardian, the Mist Dragon. As a result, Rydia's mother, who had summoned the dragon, died just as her summon did.
Upon Cecil and Kain's arrival at Mist, the package opened by itself, and Bombs were released into the village, setting it on fire and killing most of the highly-trained Summoners. While the village burned to the ground, the two found Rydia clutching her mother's corpse in shock. Overhearing how they slew the Mist Dragon, Rydia correctly accused Cecil and Kain of murdering her mother. Kain then half-heartedly suggested killing her as he had surmised that the King of Baron must have wanted the Summoners dead.
Cecil urges his friend to reconsider and the two decide to fight back against Baron, no matter the cost. Concerned for the girl's safety, Cecil offered to take Rydia with them, but she vehemently refused. When the soldiers pressed her she summoned forth Titan, who caused a massive earthquake that separated Cecil and Kain and caused a massive landslide that would block off the Mist Valley.
During the game's ending, Rydia is seen restoring Mist with the support of her friends, seventeen years later in Final Fantasy IV: The After Years.
The background music that plays in Mist during Cecil and Kain's first visit to it is "Ring of Bomb", while the track that plays in the town after this event is Final Fantasy IV's "Town Theme".