Shu and general Logi fight. The whole gang is fighting Logi's whole group. While Shu was fighting, he realized he had a new technique. the commander and the others are planning to destroy Shu and the others.

Shu's informant Homeron is gathering information about the Extra Seven. Shu and Co. arrive at Flame Phoenix' ruins. When Kluke disappears, she ends up in the area where she first encountered her Phoenix shadow and asks it how she can call upon its power again. Phoenix tells Kluke that the answers lie in herself. Kluke then receives a necklace and rejoins Shu and Co. When they find Jibral's scattered army being attacked, Shu and Co. join the battle. Upon defeating the robotic soldiers and their shadows, Shu and Co. are soon attacked by a giant robot. Kluke brings out her Phoenix Shadow to use its barrier to protect everyone enough for Shu to use Blue Dragon to destroy the giant robot. Meanwhile, Homeron receives news the mysterious woman who stole the Extra 7 is heading west.

Following the trail of the downed Norg ship, Shu and Co. look for Homeron and the Norg's crew in the Great Brandish Forest which is on the border of Gran Kingdom and Sabalu Country. Delphinium is also in the woods searching for the Norg Crew. Shu, Jiro, and Marumaro as well as Homeron and the Norg Crew are soon attacked by Obacks (one-eyed single-horned bears (known as Horned Lazy Bears within the Blue Dragon Game for the Xbox 360)). Even when Shu catches up with Honmalon at where the Obacks nest, Delphinium arrives and uses her shadow to kill Homeron. After evading Blue Dragon, Delphinium escapes. With the crew of the Norg freed, the captain of the Norg tells Shu that the Extra Seven are on General Logi's ship.

In a broken-down village, Shu's party encounters a girl named Linda who tells them that the Brigands consisting of Schmidt and his army of Mecha Robos (which were salvaged from the war) keep attacking her village to steal everything. Linda reveals that the villagers shun conflict to evade standing up to Schmidt. When the villagers return. It is here that Noi met his first love in Linda. Shu, Bouquet, Marumaro, and Noi help the villagers rebuild their village. After some romantic hintings by Marumaro to Noi, Schmidt and his army of Mecha Robos arrive and attack the village. While Noi and Linda evacuate the village, Shu, Bouquet, and Marumaro holds off the Mecha Robo army. After the villagers are safely in the mountains, Shu and Marumaro unleash their shadows and fight back. Meanwhile, Schmidt finds the hiding place of the villagers and finds their hidden treasure while the Mecha Robos with him restrain the villagers. When it comes to protecting Linda and the villagers, Noi reveals himself to be the young black dragon (from episode one) when trying to save Linda. Noi in his dragon form then attacks the Mecha Robos. Meanwhile, Shu and Marumaro finish off the Mecha Robos in the village. After taking out the Mecha Robos, Noi engages Schmidt in battle and defeats him. Upon seeing Linda's reactions, Noi flies off as Shu, Bouquet, and Marumaro catch up to the villagers. Moments later, the villagers rebuild their village as Shu, Bouquet, and Marumaro wonder how Schmidt was taken down as Noi returns. As they leave, Linda appears to say goodbye to Noi.

After Shu's brief talk with Primella, Noi finds a path out of Nirvana while Shu options another route for their next destination. Shu and Co. make their way through the city while evading the White Brigade's patrolling shifts commandeered by Furioso's intelligent tactics. During this part, Bouquet's hair touching Marumaro's nose causes him to sneeze giving them away to one of the security shifts. Shu and Marumaro manage to take them down as the next shift appears. Lucky for them before the soldiers ca signal, Jiro arrived and took them down. Jiro manages to create a diversion as Shu and the others make their escape, but Furioso easily recognises the ruse. When Furioso gets ready to intercept and fire where Shu and Co. are, Dr. Tarkovsky intervenes and tells him and the soldiers in the area to fall back, courtesy of Primella's plea.

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.