The game takes place in a small, lawless island nation called Kakati, where a ruthless warlord named General Kartov has risen to power. Kartov, a former Soviet military officer, seeks to exploit the island's rich natural resources and turn it into a hub for smuggling and piracy.

A fictional island in the Pacific, called "Kakati Island", inspired by the landscapes of Papua New Guinea and the Solomon Islands.

The game ends with Hawk reflecting on his experience on Kakati Island, realizing that he has forged strong bonds with the Kakatese people and that the island has become a second home to him.