- "The darkness! Don't... don't come any closer..."
- —Queen Karnak
Karnak is an industrial kingdom that had obtained its power through the use of Cid's inventions. Queen Karnak became angry at the engineer for trying to turn off the machine that powered the Fire Crystal, the source of power of the Fire-Powered Ship and the catalyst for the city's industrial nature, after he realized the implications of having the Crystal run on the machine. As a result, the Queen threw Cid into the Karnak Dungeons.
When the player reaches Karnak, they discover that the Queen has been missing for some time. It later is discovered she has been possessed by Exdeath. In order to try and save the Crystal, the party must first infiltrate the fire ship and defeat the Queen, now in the form of Liquid Flame. They succeed, but the Crystal is destroyed. The Queen, however, enters a delirious state and remains so for the remainder of the game, resting in a bed in the second floor of the inn in Karnak.