During their search for Jiro, Shu runs across news of a small war about to happen between a Rosekstan sub fleet led by Captain Varenko and a small band of resistance led by Captain Crester (one of the surviving members of Grand Kingdom). The party continues forward anyway hoping not to get found, leading to the combination of Saber Tiger and Hippopotamus with the 'stealth mode'. During but a few moments, Crester's band of resistance were eliminated. It was then suddenly Micheal appears before Crester and grant him the power to call his own Wyvern-like shadow allowing him to devastate General Logi's sub fleet. Having found out that the shadow that Crester wields is different from the normal Shadows and the Artificial Shadows used by Grand Kingdom, Shu's party steps in to defeat Crester. After defeating Saber Tiger and Hippopotamus, Crester faces off against Shu and Blue Dragon. After Crester is defeated, Shu, Bouquet, and Marumaro learn about the 'Dragon scales' Mikhail handed out which can grant miraculous powers to the user. They then overhear one of the Rosekstan soldiers tell Captain Varenko that they lost contact with General Logi.

The mysterious woman before now known to be named Lotarus is shown to be one of seven shadowy dragon from the castle in the sky. She is given freedom to re-judge the people of the world even after her ordeal with Logi. She runs into Mikhail and tells him that she will handle the next test. In Logic, Shu is at the library looking up while Bouquet takes Marumaro and Noi out shopping for groceries. After Marumaro and Noi ditch Bouquet, she runs into Lotarus (who uses the alias of Lota) who becomes curious about her. She asks what Bouquet wished for if she had power, but she replies that she already has everything she wants. Meanwhile, Shu finds nothing on where the dragon sightings are. Bouquet finishes her shopping with Lotarus and takes her around town. Shu is still trying to find the sightings of the Red Dragon on the map while recapping what Mikhail said. While Marumaro and Noi are enjoying an ice cream cone, Noi ends up noticing Lotarus near Bouquet. Noi runs off to tell Shu that Bouquet might be in danger. Shu even recaps about Xie telling him about a woman floating over the waters when Albarose was destroyed. While in the park, Lotarus forges a Dragon Scale Pendant behind her back and begins to offer it to Bouquet stating that it will give Bouquet what she wishes for. But before Bouquet can accept Lotarus' gift, Shu cuts in and identifies Lotarus as being in the same race as Mikhail. As Shu unleashes Blue Dragon, Lotarus ends up unleashing her shadow that resembles a white dragon with pink wings. Shu and Blue Dragon fight Lotarus as she states about the Dragon Scale tests causing Shu to recap the incidents with Crester and the moving pyramid. Lotarus states that the Dragon Scale tests were done by Mikhail and that Mikhail had been watching him. Right when Shu and Lotarus are about to make their next move, Bouquet interferes causing the match to be a draw. Before she departs, she tell Shu and Bouqet to tell Noi to make his decision as well. Later that evening, Shu gets Marumaro and tells them that they are going to find Mikhail who is spotted nearby the wetlands at the edge of Logic.

Jiro infiltrates the White Guardians' headquarters at the time when Delphinium is visiting. When he encounters Primella, he also finds her with General Szabo who is working as Primella's servant. After a brief encounter, Jiro has a run-in with Delphinium and Deathroy. When Delphinium unleashes her shadow in defense and Deathroy unleashes Chimera, Jiro sets off a bomb he placed behind her. As their fight moves outside, Jiro sets off more bombs. Jiro manages to knock Delphinium off her feet, but Vermillion intervenes before Jiro can land the final blow as the White Guardians surround Jiro. Lucky for Jiro, Xie came to his rescue in a Mechat.

The mysterious person sends Shu's group to a nearby village where they meet up with Jiro and Xie (who first appeared to them as a fruit vendor). Meanwhile at Nirvana, the White Guardians still experiment with their Brunacks on Black Shadows Type-Two with unsuccessful results. Back with Shu and Co., they tell Jiro and Xie what they know about the Investiture Beings. Jiro also informs them that Delphinium is working with the White Guardians and what the White Guardians has been up to recently. They also explain that they've been finding out more about the White Guardians and even interrogated a former member of Gran Kingdom. Meanwhile, General Logi and Matilda flashback to their close call with Lotarus as they view their new giant robots. As the sides of General Logi and Dr. Tarkovsky prepare for battle as the Investiture Beings each watch from a distance, Shu decides to get involved.

At Nirvana, Vermillion and Furioso are overseeing the upgrades to their weapons and rethink of what had happened in their fight with Rosekstan. Vermillion later reviews about recent events with Dr. Tarkovsky which is overheard by Delphinium and Deathroy. Furioso has a new sword made and trains with his fellow soldiers. Vermillion later joins the practice and nearly bests Furioso. A flashback showed how Vermillion fought against Gran Kingdom when Nene was in power and how Vermillion joined up with Dr. Tarkovsky.

The Investiture Beings have a meeting where they discuss what happened during the times of the Seven Soldiers of Light, the fight against Nene, when Zola went rogue, Mikhail's encounters with Shu, and Noi deserting the Investiture Beings. Outside of Lotarus' encounters with Bouquet, they discuss the battle between Rosekstan and the White Guardians and what Rudolph had to do to stop it. Fagino and Hildegard then bring up their encounters with Shu's group. After a talk revolving around Jiro, Kluke, the White Brigade's goals, and Rudolph's encounter with Shu, the scale-like mechanism they are floating over floats towards Rudolph. After that, Rudolph unleashes his winged creatures as the Investiture Beings lead them throughout the world as they are noticed by the White Guardians, Jiro and Xie, Kluke and Andropov, Legolas and Conrad's group, and even Shu's group as Rudolph's voice is heard.

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.