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The Empire of Niflheim (ニフルハイム帝國, Nifuruhaimu Teikoku?) is an enemy nation in Final Fantasy XV. It has achieved world domination bar the Kingdom of Lucis that has defended itself with the crystal's power. Tenebrae has limited autonomy from Niflheim due to the oracle Lady Lunafreya Nox Fleuret, who has the power to commune with the gods.
Under Emperor Idola Aldercapt, Niflheim launches an attack on the capital of Lucis, Insomnia, during the peace treaty-signing party, which would have settled the dispute over the last crystal. Presumably the treaty-signing was but a ruse to invade Lucis. King Regis Lucis Caelum CXIII, his son Prince Noctis Lucis Caelum and Lady Lunafreya are all reported dead. In truth, Luna escaped to Altissia and Noctis was not in the city when the attack took place, prompting him to seek rendezvous with Luna and start his quest to restore his kingdom and save the crystal.
Niflheim, also called Niflheimr, is a location in Norse Mythology meaning "mist world". In the story of Gylfaginning, Odin explains that creation began when the ice of Niflheimr met the flames of Muspelheim. Nibelheim is literally translated as "fog-home" in German. "Nibel" is an old-fashioned way to pronounce "Nebel", the German word for "fog", but can also be translated as "cloud" resulting in "cloud home".