While rival Covenants can be enemies, they can also be friends. The game features an extensive set of diplomacy options: Players can trade, negotiate and even form alliances with other Covenants. Or they can go to war, attempting to destroy the enemy Covenant's lifestone, a large gem that restores health, resurrects fallen Covenant members and is required for a Covenant's survival.

If defeated, the player simply starts over in a new world with all items, equipment and companions intact. In fact, players can do this on purpose, and in doing so can make the game harder or easier, adjust rival Covenant strength and tweak a few other settings.​