A major convention of world-renowned scientists is coming to Steam City, but there is a problem- someone has been kidnapping the attendees. Narutaki narrows down the list of potential targets to the next two, and goes to warn them. Later, one of them is indeed snatched, but Narutaki and Goriki foil the attempt. Later, at the convention, it is revealed that the other, Dr. Gerhalt Von Halt, is the one behind the kidnappings. He wants the knowledge of the scientists to make his megamaton better than human. He claims his evil identity- Dr. Guilty- and tries to capture the remaining scientists. Narutaki is having none of it, however, and the battle is on. Dr. Guilty's megamaton is strong, however, and Goriki is badly damaged. Just when it seems as though the heroes will be defeated, the scientist Narutaki saved earlier gives Narutaki special bullets; with which the bad guys are at last defeated.

There's a festival approaching to celebrate the dragon guardians of Steam City, but to everyone's surprise, a real dragon shows up and begins breaking into the local jewelry stores. At least, it seems to be a real dragon. The shop owners are living in a state of perpetual terror, and it seems that only Narutaki will be able to crack the case.

As Knight Phantoms reign of terror continues, Steam City has been evacuated and the city is a mere ghost town in the wake of his devastation. It's going to be Narutaki's most intense battle yet, but with so many people caring about their beloved Steam City, even enemies may be willing to lend a helping hand.