The Lost Town, also known as the Kaka Village, is located in the lowest level of the 13th Hierarchical City of Kagutsuchi. The town was founded by Jubei, and his youngest brother, Munefuyu as a place for the Kakas to reside. After the defeat of the Black Beast, this town was relocated, and built on the mountaintop. Years later, however, Kagutsuchi was built directly over their village, robbing the village of sunlight, much to it's inhabitant's dismay. Despite this, the Kakas still live peacefully in the village, and more often than not, Ragna is seen visiting them.
The Lost Town is a simple town, decorated with many signs, water-barrels, and lampposts. As there is a large crane in the middle of the town, as well as buildings still under construction, the town is still being built by Kakas to this day. It's two most noticeable features is the giant melting pot, and the large, metal cat-like head, that seemingly resembles Jubei.
- In the Lost Town stage on the right corner of the screen, a wanted poster for Ragna can be seen. However, it appears to be much different from the most well known one.
- There is a sign which refers to the stage as Catstreet with the phone number 3-26-16-10 below it, as well as the words Cat Call.