Xam'd: Lost Memories centers on Akiyuki Takehara, whose quiet life on Sentan Island is shaped by its isolation in the Yuden Sea and by the war between the Northern Government and the Southern Continent Free Zone. He lives with his mother, Fusa, while remaining closely tied to his father, Ryuzo, the town doctor. The island's uneasy routine shatters when a school explosion and a mysterious burst of light infect his arm, leaving him in intense pain and awakening a power he does not understand. The white-haired girl who rode the bus with him becomes the first person to guide him through the frightening change taking hold of him.
As Akiyuki tries to understand what happened, the fragile balance of Sentan Island begins to collapse under pressure from forces far beyond the town. His friends Haru and Furuichi are caught in the incident too, and what starts as a local disaster quickly expands into a larger conflict tied to the divided world outside the island. Caught between his family, his friends, and the unknown force inside him, Akiyuki must decide whether to resist the transformation overtaking him or use it to survive the battles ahead.