Two years after the world is freed from darkness, a young dragon escapes and crashes to earth. Shu and Bouquet have joined Legolas' Sarbin resistance against General Logi. Shu leads a supply raid on a Rosekstan airship, then rides with Bouquet to investigate the crater, and encounter a mysterious boy named Noi. All three find themselves prey to a Rosekstan fleet. But a red dragon appears and decimates the Rosekstan forces. While evading the red dragon, Noi uses his Tosen Kyuden ability on Shu. With Noi's help, the Blue Dragon returns. After a fierce battle, Shu and Blue Dragon cause the red dragon to retreat.

Kluke starts to get exhausted from various teleporting when getting some White Guardian soldiers away from the battle. After decimating half of the White Guardians' troops, General Logi clashes with Furioso. As the battle rages on, the Investiture Beings continue their meeting as Mikhail plans to take action upon both sides despite the objections of Hildegard and Lotarus. Shu and the Noi/Blue Dragon have begun their fight with Vermillion. Kluke finally collapses from the strain. Meanwhile, Delphinium and Matilda engage each other in battle which ends with Matilda having Zephyrus teleport her away from Delphinium and Deathroy. As Shu and Vermillion are locked in combat, Mikhail ends up leaving the floating city. General Logi and Furioso are still locked in combat until Furioso leads him into a trap consisting of the White Guardian soldiers firing their cannons at him. General Logi manages to evade it and makes a striking blow toward Furioso only for one of the White Guardian soldiers to throw himself in front of Furioso. Jiro and Xie continue their reconnaissance. General Logi's hideout blows up to reveal a weapon air fortress called Sleipnir which decimates some of the Brunacks. During Shu's fight with Vermillion, Mikhail arrives and assumes his Red Dragon form and starts attacking the Rosekstan soldiers and the White Guardian soldiers. Shu and the Noi/Blue Dragon managed to put up a barrier to protect Jiro and Xie. Shu ends up going into overdrive which starts to make the grounds unstable, but lets himself get beat due to the pleas of Kluke, Bouquet, and Marumaro.

Rosekstan begins their attack on Rudolph's war machine. Rudolph then unleashes his winged creatures, a bunch of Amethyst Dragons, a Moody Dragon, and a Phantom Dragon. Jiro, Kluke, Marumaro, Bouquet, Andropov, and General Logi unleash their shadows to attack the war machine while Noi looks for Shu. Meanwhile, Shu makes contact with Zola's spirit. As the battle progresses, Rudolph's war machine decimates most of the Rosekstan fleet. Just as one of the winged creatures is about to attack Jiro, he is saved by Delphinium and Deathroy (who have unleashed Chimera) as they arrive with reinforcements. Sleipnir fires its cannon at Rudolph's war machine but to no avail. Rudolph then fires the attack which decimates more Rosekstan airships as Noi charges towards the war machine.