During Christmas 1955, a young Hellboy is told a bedtime story by his adoptive father, Trevor Bruttenholm, of an ancient war between human and magical creatures. After the magical creatures are driven back by the humans, the goblin blacksmiths extend an offer to Balor, king of the elves, to build him an indestructible mechanical army. Encouraged by his son Prince Nuada, Balor accepts; the Golden Army subsequently decimates humanity. Regretting his actions, Balor forms a truce with the humans, that they will keep to the cities and the magical creatures to the forests. The crown to command the Golden Army, which can only be worn by one of royal blood, is split into three pieces. Nuada, disagreeing with the truce, leaves in exile.