Much like the Ebonheart Pact, the Daggerfall Covenant united races that were commonly known as old enemies. Due to the events in Cyrodiil, trade routes, the region's main source of income, were disrupted. This caused poverty and suffering, and ultimately forced to unite the people under one banner.[OOG 1]
The Daggerfall Covenant stretches over the provinces of High Rock, Hammerfell and the city-state of Orsinium and Imperials of Cyrodill. Its capital was the city of Wayrest, built on two shores of the Bjoulsae River in High Rock. The faction is led by the High King Emeric.[OOG 1]
The starting location for this faction is the city of Daggerfall, where the player wakes up after being brought out of the water where they are deposited after escaping from the Wailing Prison in Coldharbour.
Merchant king of Wayrest, Emeric, took action and united the previously warring races of Breton, Redguard and Orc. He earned the trust of the kings of High Rock, earned alliance of the Redguards by a diplomatic marriage and, finally, made a war treaty with the Orcs.[OOG 1]
As trade in the region slowed to a halt, it was only appropriate to have a merchant for a leader of this faction. High King Emeric took this throne as he united the races of High Rock, Hammerfell, Cyrodill and Orsinium. Emeric is known for his skill in politics and diplomacy. He, no doubt, is a wise leader, but his foes are given no mercy. His strategy is to infuse fear into his enemies, slaughtering armies and leaving few of the fighters alive, only for them to run and share their tale.[OOG 1]
The dominant race of the Daggerfall Covenant, they were once ruled by High Elven overlords after they were discovered to be descended from both Men and Mer before becoming the dominant race in the region of High Rock and edging them out. A reminder of those days is the Mer blood that still runs through their veins. This makes Bretons gifted mages, surpassing the ability of any other race of Men. Described as talented and resourceful, and having a similar focus on honor in battle, the Covenant is often ruthless in the defeat of enemies that threaten their people's prosperity, Bretons are known as skilled craftsmen, shrewd merchants and inventive mages and are famed for their Knights. They value prosperity over glory in battle.[OOG 1]
Living deep within and around the Alik'r desert, Redguards are renowned warriors, both athletic and prodigiously talented. They value honor and dignity above all else; their sacred purpose is to preserve their ancient traditions and prove their strength and prowess, surviving in the harsh environment. Mages are highly distrusted in their society. The capital of the Redguards was the great city of Sentinel.[OOG 1]
During the Second Era, when their homeland, Orsinium, was finally given provincial status, they had to prove themselves to be more than mere savage beasts. And the Orcs did so by devoting themselves to the newly forged alliance.[OOG 1]
- Main article: Quests (Online)
- There will be a quest given by a farmer near Daggerfall involving a prize pig being kidnapped.
- The player will be asked to stop a plot by the Bloodthorn assassins, who are plotting to kill King Casimir. 
- The main line of quests in Glenumbra revolve around the defeat of Angof the Gravesinger, the leader of the Bloodthorn Cult and a Worshipper of Molag Bal.
- There is a very interesting story involving a town overrun by werewolves that plays a crucial part in the early story once arriving in Daggerfall.