The Orthodox Papal State of Lunaria is a theocratic country and is the center of Lunarian Orthodoxy, Its capital is the Holy City of Yumuen.
The country is landlocked and is surrounded by the Gran Chaos Empire to the west, the Star Dragon Mountain Range and the Nothung Dragon Knight Kingdom to the north, the Union of Eastern Nations to the northeast, the Kingdom of Freidonia to the east, and the Mercenary State Zem to the south.
According to the Lunarian religious texts, around the time of the founding of the Elfrieden Kingdom, the people of Lunaria had come together due to their belief that their ancestors came from the Moon itself. These 'lunarians' or 'moon people' became a source of support during this time of chaos and gathered followers to eventually became a nation itself. The main doctrine was salvation of the weak and mutual aid.
However, despite this seemingly harmless and benevolent appearance, the Papal State of Lunaria began to influence the citizens, governments and polices of other countries, thereby gaining power and prestige. By the time of Kazuya Souma's summoning, Lunaria was already a nation with substantial influence. They also held antagonistic views against the worship of the Mother Dragon as they believe that worshiping a living being like a deity was heresy.
After the occupation of Van in the aftermath of the One Week War, a large rebellion occurred in the northwest region of the Principality of Amidonia. Though no substantial evidence was ever found, Kazuya Souma, Maria Euphoria and Roroa Amidonia suspect that the Orthodox Papal State of Lunaria was responsible for starting it by inciting followers of their faith to riot. Lunaria would later build up its military forces to send into Amidonia under the pretense of protecting those who followed the Lunarian Faith. These military build-ups would subside as they did not want to come into conflict with the Elfrieden forces that were re-occupying Van at that point.
Sometime after the formation of Freidonia, Lunaria would send Saint Mary Valenti to Kazuya Souma as an ambassador and 'gift' to him. Her goals were to establish the Lunarian Faith as a state religion in the kingdom, grant the title of Holy King to Souma and create an alliance between Friedonia and Lunaria to challenge the Gran Chaos Empire. Kazuya would turn down the title of Holy King, but did agree to allow the Lunarian Faith to be practiced by anyone who wished to follow it. He also appointed Bishop Souji Lester to manage the believers of the Lunarian Orthodoxy. much to the consternation of both Saint Mary and the Lunarian clergy. As all religions in Fredonia were to be registered, the Lunarian Faith would not gain dominance over the other beliefs.
The Orthodox Papal State of Lunaria is a theocracy and has a pope who serves as the religious and temporal ruler. Below the pope are the cardinals. A cardinal can only be removed by the pope or by the unanimous decision of other cardinals, and if all cardinals give unanimous approval they can also remove the pope.
As such, the citizens are considered as followers of the faith or worship of the Moon Goddess Lunaria. The Lunarian Orthodoxy is one of the two major religions of Landia, with worship of the Mother Dragon being the other. Though the faith preaches love for all mankind and mutual cooperation and tolerance, several extreme zealots of the Lunarian faith are hostile toward other religions. Furthermore, since it is their belief that only the pope has the right to name saints, the Papal State takes great offense over the fact that Maria Euphoria is being referred as a Holy Saint by her people, despite Maria stating that she does not acknowledge herself as such.
Furthermore, magic is seen as the grace of the gods or spirits. Therefore, scientific methods are also seen as heresy. As stated by the scientist Genia Maxwell, her research and theories would have gotten her thrown in jail or burned at the stake in the Papal State. By explaining the reason behind the magic, the church would lose its power, influence and control.
Those who are chosen to be saints by the pope and holy revelation by the Lunalith, (an ancient holy artifact), are nuns from the central church. Normally they were originally orphans taken in by the church and are trained and raised by the doctrines of the faith. As such, they are cut off from the rest of the outside world and are made to be obedient 'servants of the church' in order to influence or seduce the rulers of other nations. On average, there are usually 50 potential saints among the clergy.
The politics of the Papal State are seen as potentially dangerous by Kazuya Souma, Maria Euphoria, Roroa Amidonia and others. The main reason why Kazuya did not accept the title of Holy King was because he did not want to get involved by the Orthordoxy, should they declare any holy crusades or religious affairs against other nations. It is no secret that the State is strongly opposed to the Gran Chaos Empire and is trying to ally itself to Friedonia against it. Through the power of their faith, the Papal State has the potential of starting conflicts in other nations.