Scheherazade is a bonus character in Soul Calibur IV designed by guest artist Yutaka Izubuchi.
Her weapon, named Alf Layla Wa Layla, is a rapier. The weapon's name comes form the Arabic name of One Thousand and One Nights, a collection of stories told by the original Scheherazade, a legendary Persian queen. Like all of the bonus characters, Scheherazade's moveset is recycled from one of the main character's; she uses the same moveset as Amy. What lies in her soul is Fervor.
There was once a war between Soul Edge and Soul Calibur that shook the world. This tale was of great interest to Scheherazade, the storyteller of her people. She manages to avoid the elders who had concealed themselves long ago in the deepest parts of the woods. She found herself tangled in many troubles, though she still managed to satisfy her curiosity; only to be taken back to the woods again in the end.
Normally, the ones who leave the village are put to death, but Scheherazade instead was locked away in an arboreal prison. There she spent many years thinking about the man she loves, a young warrior who would become the founding father of Wolfkrone. Eventually, her time was served and was she released. However, Scheherazade showed no signs of remorse. Instead, she fled the village once again.
Scheherazade's people lived many, many years longer than humans. The successions of the outside world were very swift to her. She was certain her beloved had died long ago, though she thought he must have left some legacy and was determined to find out what it was for herself. After all, what storyteller fails to see her own tale through to the end?