This is Melfand Stories from 1994. It’s a side-scrolling arcade like action game, with nice graphics and simple gameplay. The branching story is set in a stereotypical, but charming fantasy setting.

Depending on the hero that you play and the paths that you choose, you get different dialogue. One of 3 companions will support you in the final battle. The game features 9 levels total and is kind of short overall.