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Not much is known of the Nephlan Empire, it was briefly revealed they defeated the Canillians in a war, having defeated the battered nation they still occupy the Canillian archipelago with little or no resistance from its inhabitants. They are currently facing the threat of Prince Chaos' return with the capture of their leader Stromulex.
The Nephlan Empire is controlled by its assumed emperor as an absolute monarch, under the system of imperial autocracy.
The empire was recently at war with the Canillian Principality (for unknown reasons).