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Estalia is in the Southern Old World, a peninsula to the south-west of Bretonnia bordered by the Irrana and Abasko Mountains to the east, the Great Ocean to the north and west and the Southern Sea to the south. Geographically it is analogous to the real-world Iberic Peninsula. Far from the front lines in the wars against Chaos, Estalia has remained politically fractured, with rival kingdoms vying for power and influence between each other and against the neighbouring city-states of Tilea, such as Tobaro, which lies across the Abaskos from Bilbali.

Estalia is dominated by two powerful port cities, Bilbali and Magritta. The rivalry between the two - and between each and their Tilean neighbours, for that matter - has endured for centuries. There is also rivalry between Tilea and Estalia over the leadership of the cult of Myrmidia, although most agree that the temple in Magritta is the most senior place of worship for the religion. Estalians take great offence at being referred to as Tileans, or at being addressed in the Tilean language by accident.

Estalia bore the brunt of Sultan Jaffar's invasion from Araby, which was eventually driven from the peninsula by a combined force including knights from Bretonnia and the Empire and precipitated the first crusade.

The peninsula is renowned for its diestros, skilled duellists who carry finely crafted swords made from superior Estalian steel, and who ply their trade across the Old World. As in Tilea, military affairs are usually left to mercenaries, the so-called Tercios or Dogs of War. A typical force will include caballeros (heavy cavalry), bandolieros (handgunners) and hombres villanos (swordsmen).

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