An ominous tower that lies at the far end of the Valley, it was here that Shovel Knight lost his beloved Shield Knight, and where Donovan nearly died. He plans to reach the tower to stop The Enchantress and find and save Shield Knight.
The Tower of Fate is divided into three stages:
In the Specter of Torment campaign, the Tower of Fate serves as the hub world, where the player can buy and upgrade Curios, buy new Cloaks and talk to several NPCs exclusive to the Specter of Torment storyline. The player can also access the Magic Mirror, where they can go access each of the Order of No Quarter recruits' stages.
At certain points after recruiting a specific number of Knights, a flashback sequence will occur in which the player will control Donovan, Specter Knight in life, where he is shown climbing the Tower of Fate with his partner Luan in order to retrieve a legendary amulet that has been rumored to been located there.
As the game progress moves on, at the balcony where Specter Knight starts at, it is possible to see the conquered facilities in the valley.
- Red, a red skeleton who trades Curios for Red Skulls.
- Manny, who sells Cloaks. In order to unlock this character, Specter Knight needs to offer 800 gold to its container for three times.
- Missy, who sells the Will and Darkness Wisps that the player missed during their visit to the main stages.
- Legion, who upgrades Curios. In order to unlock this character, Specter Knight needs to offer 1,000 gold to its container for three times.
- Horace, who offers the Tower Climbing mini-game.
- Edge Farmer, who gives gold to Specter Knight after being impressed by either performing the Cold Shoulder or by skating with the Rail Armor in front of him.
- Madame Meeber, a character exclusive to the Nintendo game versions (Wii U, 3DS, and Nintendo Switch), who can scans the Shovel Knight amiibo and summon a fairy companion who will follow them throughout the game.
- Creech, a bartender that comments on how populated the tower is.
- Dancer, who will unlock the Cold Shoulder action if interacted with. She only appears after the player clears The Lich Yard and will leave after she's talked to because Specter Knight broke her heart.
- Gall, who demonstrates "the Kiss of Death" when spoken to. He only appears after the players recruits half of The Order.
- Goldarmor, who will be in the mirror room. Above him there will be a colored lamp which will break and fall if Specter Knight Dash Slashes through it three times. If the lamp falls over Goldarmor, the flames will tint him with the respective color. After cycling through all the colors, he will be revealed to be a dragon in disguise, dubbed by fans as "Dragonarmor".
- Memmec, next to the Goldarmor in the mirror room. The player can knock one of the purple orbs near the entrance at the Memmec, which will proceed to play with the orb and release treasures (this can only happen once).
- Grandma Swamp, who appears to Specter Knight through a mirror in the room next to the dining hall. The player must strike the mirror consecutively, causing it to spin and show her image.
- Dark Acolyte, who is responsible for guarding and operating the Magic Mirror that teleports Specter Knight to the stages. Later he is replaced by Reize until all the Order of No Quarter recruit stages are beaten.
In addition, each time Specter Knight defeats a member of The Order, they will appear, one at time, at the dining hall, by the feast table, where they will comment on the new base of operations. Minions from the respective Order members will also start to roam the Tower, and some will give gold to Specter Knight when spoken to (only one time).
- The room where Specter Knight fights The Enchantress is the same room where he battled Shield Knight.