Ruby Rose, a girl who admires Huntsmen, along with her elder sister Yang Xiao Long enroll into Beacon Academy, a training school for Huntsmen. Her talents were discovered by Ozpin, the school’s Headmaster. Weiss Schnee, heiress of the world’s largest Dust manufacturing company, the Schnee Dust Company (S.D.C.), has disagreements with her father, defeats Arma Gigas, and leaves. Blake Belladona, a former member of White Fang, a terrorist organization and sworn enemy of the S.D.C., also leaves her organization. These two girls also become new students at Beacon. With hope and secret passion in their hearts, the story of these four girls who dream to become Huntsmen, now begin.

Young boys and girls wanting to become Huntsmen gather to attend Beacon’s entrance ceremony. As everyone gathers, a shy Ruby is being urged by Yang to make friends. However, after being dismissed by Blake and angering Weiss, she gets depressed. Ruby begins to feel uneasy when she learns about her upcoming placement test, which will determine the team members she would spend the rest of her school days together. As all new students must enter the forest where dangerous Grimm lurk, Ruby, impatient with the test’s rule of teaming up, pairs with the first person she sees, but…

On her snowboard, Ruby slides down the snowy field. Weiss, possessed by the Grimm “Nightmare”, created a world in her dreams, which is a reflection of her mind. With the help of Shion, a Huntsman specializing in the Grimm “Nightmare”, Ruby sneaks into Weiss’ dream and heads toward the place where the “Nightmare” had taken root. Those possessed by the “Nightmare” will be entrapped in a nightmare where Aura and life will be deprived. Weiss was already in a dangerous condition. Ruby was so eager to quickly free Weiss from the “Nightmare” but the world reflecting Weiss’ mind, block’s Ruby’s way.

The city falls along with the deformed Sillies and the robot soldiers affected by the bugs’ rampage. As the situation gets chaotic, Nega-Weiss shows up with a giant statute of Nicholas, capturing the Sillies one after another. Although Jaune bravely confronts the statue of Jacques, who is wearing armor that’s reminiscent of Grimm “Geist”, he and Pyrrha, a resident of the dream, are captured. Meanwhile, Ruby’s party manages to reach the core of the dream where the “Nightmare” had rooted, but Nega-Weiss stands in their way. Yang and Blake are swallowed into the glyphs and disappear.

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.

Freed from the nightmare, Team RWBY resume their school life. The teammates had opened their hearts to each other more than before. Ruby decides to do her best as leader, and Yang supports her younger sister’s decision. Weiss and Blake promise to accept each other as teammates.