True to the stage's name, the fighters combat in front of the main entrance to a large castle (which is surrounded by a forest with a slighty-covered full moon overhead) surrounded by a wide moat.
Based on the SNES version, this is the same area as the rooftop where Spinal is mainly fought in the game's arcade, and where the fighters can knock each other off into this stage, particularly into the moat in the background.
- Sabrewulf's Castle - The titular residence where the lycan Sabrewulf is fought in the sequel, and its surrounding areas:
- Interior Castle - An interior area located somewhere in the castle in Killer Instinct.
- Spinal's Rooftop - The rooftop of the castle in Killer Instinct, where Spinal is mainly fought in.
- Dungeon - A dungeon located somewhere in the castle in Killer Instinct 2/Gold, where the demon lord Gargos is fought in the final battle.
- Alchemical Lab - A hidden laboratory located somewhere in the castle as seen in Killer Instinct (2013).