Kyle Capua is the middle of the three siblings who lead the gang of sky bandits serving as antagonists in the first part of the game.
Estelle and Joshua first cross paths with Kyle during their pursuit of Kyle's sister Josette who staged a burglary at Rolent's mayoral mansion and took off with a priceless piece of septium. Estelle, Joshua and Scherazard manage to track down Josette to the camp she set up in Mistwald Forest and, after a brief battle, subdue her and her three accomplices. Before Josette can be taken into custody, however, Kyle appears in the Bobcat, the sky bandits' airship, and fires a warning shot at the bracers with the ship's orbal cannon. Landing the ship near the camp while keeping the bracers in his sights, Kyle emerges from the hatch and tells his sister that something big came up in the Bose region and that he's here to pick her and the others up. Wasting no more time with explanations, Kyle tells Josette to just hurry up and get on board, immediately taking off afterwards. The bracers later learn that the big event that Kyle was talking about was the sky bandits' capture of a public airliner.
Estelle, Joshua and Scherazard run into Kyle again while they're investigating the abandoned mine near the village of Ravennue. After the sky bandits captured the airship, they hid it in an open area in the mountains connected to the mine and when the bracers arrive, Kyle and four of his fellow sky bandits are busy transferring the airliner's cargo onto their own ship. Kyle's first reaction upon seeing the bracers is one of denial, exclaiming that "you're not supposed to be here this early". After realizing that Estelle and her companions aren't directly involved with army and that it's only the three of them he and his men are up against, Kyle and his underlings attack the bracers.
Despite their strength in numbers, Kyle and his men are unable to defeat the bracers, but after laughing at Estelle for making a remark suggesting she has no clue about the actual location of the hostages, he detonates one of his smoke bombs and he and his men make it on board the Bobcat before the bracers get their bearings back.
While Kyle managed to shake the bracers at the mine, good fortune smiles on them and they manage to pick his trail back up and while at the Kingfisher Inn on the shore of Lake Valleria, Estelle, Joshua and Scherazard stake out a meeting between Kyle, Josette and 2nd Lieutenant Lorence. Before Lorence's arrival, Kyle and Josette have a brief conversation where Josette points out that their older brother Don has been acting irrationally lately ever since "someone" (most likely Weissmann) had a meeting with him. Kyle agrees with her, though his statement that Josette should drop out and get herself to safety while she still could gets him an angry retort that the sky bandits wouldn't last long without her domestic skills.
Once Lorence arrives, he informs Kyle and Josette that the Queen is getting ready to pay the ransom and that while the army and the guild are on the move, they remain unaware of the hostages' location. Excited about the prospect of getting the ransom and putting the whole situation behind them, Kyle and Josette leave the meeting place and return to the Amberl Tower where the Bobcat was parked and their crew was waiting. As they fly their ship back to their hideout in the Nebel Valley, they're unaware that Estelle and her companions have stowed away on board.
Upon reaching their hideout, Kyle and Josette go to report to Don, only to receive a frightening surprise when Don suggests that releasing the hostages will be too dangerous and that they're better off killing the passengers after receiving the money. Horrified at the idea of murdering innocent people, Kyle joins Josette's protests, stating that he doesn't want to regain their home with blood-stained money. Don doesn't take kindly to this challenge and hits Kyle with a thrown liquor bottle. As Kyle and Josette desperately try to figure out what's wrong with Don, Estelle and her companions rush into the room and defeat the three Capua siblings in battle. After Don, who got knocked out during the fight, regains consciousness, both parties are puzzled by his personality suddenly changing from cruel and bloodthirsty to good-natured. Kyle decides to take advantage of the fact that all attention is momentarily focussed on Don and detonates one of his smoke bombs, allowing him and his siblings to escape the room. Thanks to their men slowing the bracers down, Kyle, Josette and Don manage to make it to the exit before their pursuers catch up with them, only to run right into the arms of the army waiting outside. As they're surrounded, subdued and led away by the army soldiers, Kyle realizes they've been double-crossed.
After their arrest, Kyle, Josette, Don and their followers are all imprisoned in the dungeons underneath Leiston Fortress. It's there that they meet Estelle and Joshua again while the two are in the process of trying to get the kidnapped Professor Russell out. After an awkward moment and a brief one-sided verbal scuffle between Estelle and Josette, the bracers walk back out again, leaving the Capuas where they are. Not having any sympathy for the Intelligence Division themselves, Kyle and his siblings decide to keep Estelle's and Joshua's involvement to themselves instead of ratting them out.
Kyle and his fellow sky bandits cross paths with Estelle and Joshua once more in Grancel where he and his siblings are sponsored by Duke Dunan to participate in the Martial Arts Competition with the promise of a lighter prison sentence if they do well enough during the tournament, presumably an arrangement secretly made by Colonel Richard in order to "make up" for using them in his rise to power. After being led to Grancel harbor by boat and being allowed to buy weapons at the local store (while still being in handcuffs), Kyle, Josette, Don and Lyall are taken to the Grand Arena to take part in the match, making it through the preliminary rounds and facing off against the Royal Army's 3rd Regiment during the quarter-finals.
Kyle and his team manage to defeat their opponents in the ring and although he personally takes several hard hits, the combined efforts of himself and his fellow teammates proves enough to see them through with Kyle ending the match in style by taking out the team's captain with a well-aimed smoke bomb. The next day, Kyle and his team share a waiting room with Estelle and her companions, with things being relatively amiable between the two parties, even concluding in mutual luck-wishings. When it's time for them to take on the team of the Intelligence Division which used them as pawns, Kyle and the others are eager to deliver some payback, even though they're temporarily unnerved when Lorence casually mentions their history as former aristocrats just before the fight. Unfortunately, the Capuas' desire for revenge on their betrayers isn't enough to win them the match. Kyle himself gets several hits in and prepares to use another one of his smoke bombs to even the odds, but before he can use it Lorence rushes in and effortlessly takes him down. Beaten and exhausted, Kyle and his companions are then hauled off and sent back to Leiston Fortress.
Despite their defeat in the competition, things turn around for Kyle and the other sky bandits when the Intelligence Division's coup is thwarted and its members are arrested themselves. Taking advantage of the turmoil around them, Kyle and his companions manage to escape custody and are still at large as the Birthday Celebration takes place.
Kyle, Josette and Don Capua originally hail from the Erebonian Empire and their family used to be nobility, complete with a mansion and territory. All that changed when they lost their territory to a corrupt merchant, leaving them with nothing except their airship and their servants, who became part of the sky bandit gang. Seeing no other way to survive, Kyle and his siblings took to piracy, hoping to one day gather enough money to get back the family home they lost. While initially only active in the southern reaches of Erebonia, the Capuas eventually moved their activities into northern Liberl, even making a push into the Rolent region.
Of the three Capua siblings, Kyle is easily the most laid-back and easy-going of the three, being less confrontational than the tomboyish Josette and more reserved than the loud and boisterous Don. Despite his usually friendly demeanor, he's not afraid to get his hands dirty if he feels it necessary. He acts as the gang's second-in-command. He usually defers to his older brother's leadership, but generally doesn't hesitate to call Don out if he gets too carried away. Being 7 years older than Josette, Kyle still acts a bit protective of his younger sister, feeling it would have been better if she hadn't gotten involved in piracy like the rest of them. When Josette angrily retorts that they wouldn't last long without her domestic skills, Kyle quickly backs down, suggesting that his homemaking and cooking skills are really as bad as his sister says they are.
Kyle is fought twice during the events of Chapter 1 and his tactics remain identical throughout the fights, though in the second battle he loses his weakness to earth magic while becoming more vulnerable to other elements.
While Kyle has more HP than the average enemy, he's not particularly strong on his own, his strength and defense being lower than that of the various large monsters the player might have exterminated by that point already. While Kyle can take several hits before going down, he's weak to elemental magic and doesn't have any immunities to bad status effects.
In addition to his standard sword slashes, which hurt one character for medium damage, Kyle has one additional attack that makes him stand out: the smoke bomb he frequently uses in cut-scenes is occasionally used as a craft in battle. Kyle's smoke bomb is an attack that hits a character and all allies around him or her for physical damage in addition to having a chance to inflict the blind status. Since it's a physical attack, however, it frequently whiffs if Kyle becomes blinded himself and since it takes some time to charge, it can be cancelled altogether when he gets hit by an attack with impede properties, such as Schera's Bind Whip craft.