Based on the test results, Ruby, Weiss, Blake, and Yang form “Team RWBY”, and their school life beings. However, the four are not able to open up to each other just yet. Weiss, unaccepting that Ruby was chosen as team leader, appeals to the professor that she is more capable of the role, but is advised to be “be the best teammate.” On the other hand, Jaune had been chosen as the leader of “TEAM JNPR”, with Nora, Pyrrha, and Ren as his teammates. Feeling discouraged about his lack of skill and cowardness, he is possessed by the Grimm “Nightmare”.

Blake’s plan was a much too dangerous one, making the “Nightmare” possess Blake so that they could confront Nega-Weiss. Yang objects but Blake was firmly determined. Shion and Ozpin decide to accept her plan, considering Weiss’s urgent condition. As Blake becomes covered with the “Nightmare”, an ominous herd of shadows appears. Blake gives the word of command, “Burry the Schnee Dust Company!” toward the shadows, which looked just like Adam, who she had left behind in her past. Blake attacks Nega-Weiss along with the herd, and Nega-Weiss confronts them with anger. It was indistinguishable if the herd was Grimm or the White Fang. Meanwhile, Ruby uses this chance to head toward the center core of the dream, where the “Nightmare” had rooted.