Shangri-La is a mythical valley hidden somewhere in the Kunlun Mountains in Asia. Its existence was long believed to be a legend by mortals. It served as a vault for important Wizard artifacts. The valley can only entered through a portal hidden in the mountains.
In ancient times, the Source of All Evil declared war on the Wizard race. Knowing they could not win, their kings ordered all important artifacts to be moved to the valley. They cast powerful magic to conceal the valley and placed Garuda Demons there as guardians, which they considered a necessary evil, as many of the knowledge and artifacts hidden there could be dangerous.
In 2008, Professor Whitney organised an expedition to the valley. However, all but Arthur Cobbs were either killed or transformed into Garuda. Billie and Violet traveled to the valley to resue him. A young man named Bryant Hughes then stole an ancient staff from the temple, causing it to collapse. During their escape, Billie and the others vanquished most of the demons and the valley was left in ruins.