Geneforge 5 takes place during the height of the rebellion. As shown in the 2nd Geneforge game, Drakons were created, but rebelled, ran away, and formed their own faction to destroy their creators, the Shapers. Within time, they created a powerful leader named Ghaldring, who fled with as many servants as he could to some islands to the north when the Shapers decided to attack. There, he researched and created more of his kin until he decided to take over the islands for his own kind.
After a successful campaign, he moved up to conquer the mainland Terrestia, starting from the eastern side. In a short time, he and his forces took over half of the continent with the shapers unprepared for their enemies. They set up Geneforge stations in the north and to the south. Soon, the shapers regained on the offensive and took back the lands they lost to the rebels. They were to the point of defeating the rebellion when they released their weapon: the Unbound, a Drakonlike species filled with essence, extremely erratic, and uncontrollable. Releasing the Unbound into Shaper lands, the rebels took over the eastern half of their continent back, but were met by tough Shaper resistance on the western side.
The game starts where the playing character is 'awoken' up in one of the northern provinces of Terrestia, an area known as the Foundry.