In the phantasy mod there are several different new factions corresponding loosely to new Races, these are:
- The Undead
- Mages(presumably human)
- Blazing Hands(human)
Notably, the race of gnomes exists but they are a part of dwarves, other factions include: demons, Immortals, golems which are either a hostile faction or in the case of golems are incorporated into mages.
The Native Factions also appear in this mod and have a large lord advantage at 20 lords per native Faction to the 10 lords of the Phantasy Factions.
These factions are very similar to Native ones except, they mostly have feuds with each other and they have a "Rally" function.
When the "Rally" function is called, all armies of Phantasy factions gets a large increase in soldiers with the message:"'Race 1' has rallied its forces."