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.

Shu has a dream of a mysterious girl telling him to save the world. After Noi helps reawaken Bouquet's Hippopotamus, Shu and Bouquet talk about Noi including about his mysterious ability to revive lost shadows. Shu then tells Bouquet that something is not right in the world and says that they will be heading to Marumaro's village. Meanwhile, General Logi is in the middle of world conquest when his second-in-command Matilda tells him of an important matter. Rosekstan's capital Albarose is then invaded by a woman who has the same characteristic as Noi. Having his guards taken down, Logi faces the woman. The woman however wants a fair fight so she reawakens Odin from his slumber with her Tousen Genbaku. Shu's party later has a run-in with a mysterious man named Mikhail stating to be a 'Investiture Being', and also a shadow wielder whose shadow is a splitting red of the red dragon they fought before. Overwhelmed as their fight rages on, Noi reluctantly uses his Tousen Bardagir move that gives Bouquet and Hippopotamus the ability to merge with Shu, giving a new armored form for Blue Dragon to overpower Mikhail but not defeat him

Mikhail leaves thereafter, before warning Shu that the fate of the world lies in the choices he and his friends make. Back with Logi's duel with the mysterious woman, she states that he was not qualified and in a flash sets Logi and Albarose ablaze. Watching from a distance were two tightly cloaked characters. Feeling the need to gather the previous partners being shadow users, Shu takes Bouquet and Noi to Marumaro's village to awaken Marumaro's shadow Saber Tiger. But starting out on a wrong foot sets Noi and Marumaro at each other's throats. To settle their differences Shu has Marumaro and Noi compete in different sporting events like arm wrestling, racing, and other events. When it comes to a card game, Noi wins and uses his Tousen Kyuden to awaken Saber Tiger. The Investiture Beings are in their meeting and have elected Shu as the World's Representative. Mikhail leaves to watch over Shu's progress.

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.

Shu's party crosses the desert to find a huge pyramid and right across was Heliut, a town with many casinos. In the town, they find Legolas, their leader of the resistance who came to Heliut to procure enough funds for his resistance by going to the casinos. He ended up to his life in debt to Mayor Heliut the IV after Legolas lost it. It was during the conversation suddenly, the pyramid began to rise and starting moving towards the town launching its bricks toward Heliut. The armies of Mayor Heliut the IV fail to stop it. Attempting to settle his debt by saving Heliut, Legolas sends Shu's party to demolish the pyramid after speaking to Mayor Heliut the IV. Bouquet and Hippopotamus merge with Shu's Blue Dragon as Marumaro unleashes Saber Tiger. Every attack that the Bouquet/Blue Dragon does to the pyramid, it rebuilds itself. Mayor Heliut the IV tells Legolas that if anything happens to his city, he will hold Legolas responsible. Noi comes with a plan which involves Bouquet splitting from Blue Dragon and merging with Saber Tiger. When the Bouquet/Saber Tiger gets close, Shu has Blue Dragon attack followed by the Bouquet/Saber Tiger attacking the core. When they managed to stop the pyramid, they discover that one of Mikhail's Dragon Scales was placed in a mummy. After being congratulated by Mayor Heliut the IV, the group learns that Legolas' deal to him was that they would stop the pyramid in exchange for being free from his debt. While Shu angrily chases after Legolas, Bouquet, Marumaro, and Noi enjoy their stay in Heliut.

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.

Kluke is shown leaving in a nearby village, being a teacher to some kids and treats the injuries of a boy named Romu after he trips. While at the beach, Bouquet and Marumaro have some fun while Shu goes to the village where Kluke is living. While on the path to the village, Shu runs into Noi who states his interest in finding Kluke and going to awaken her shadow. Meanwhile, Bouquet gets jealous when she hears from Marumaro that Shu went off to look for Kluke. The next day, Kluke leaves to tend to her students. At her house, Shu encounters Andropov who says that Kluke isn't here. Besides stating that he is looking for Kluke, Shu tells Andropov about what happened to Albarose and that General Logi's whereabouts are unknown. Meanwhile, Noi meets with Kluke. Andropov tells Shu that Kluke doesn't want to end up battling again. While the kids are napping, Kluke tells Noi on how she was treating the injured following a great battle and that one of the injured was Andropov. Also when brought up by Andropov to Shu, a flashback depicts Shu telling Kluke that Legolas is organizing a resistance against Rosekstan and states that she doesn't want any part in the resistance. After the flashback, a battle between Shu and Andropove then assume where Shu wins with little trouble due to Andropov's condition. Shu is unable to trample over Kluke and Andropov long found peace causing Shu to leave. Meanwhile, Noi secretly reawakens Kluke's Phoenix without her knowing and departs. Later that evening, Kluke returns home and meets up with Andropov.

Arriving in a local town, Shu recalls about his attempts to Jiro and Kluke to help him. This causes Marumaro to become concern and Bouquet to feel neglected. Marumaro ends up encountering dancing sisters Donna and Reina. When Marumaro brings them to Shu to cheer him up, the sisters end up dancing with Shu and Noi until Bouquet arrives getting into an argument with Shu. The sisters break from Noi and end up sucking the life out of Shu and Bouquet. Donna and Reina then perform while sucking the life out of some of the townspeople. Marumaro ends up deciding to correct this problem and obtaining Noi's help. Donna and Reina recall when they used to be down and out until Mikhail arrived and gave them Dragon Scales to make them more beautiful. This also caused them to absorb the energy of jealous people. When Donna and Reina leave, Marumaro and Noi emerge from their hiding spots as Noi tells Marumaro that Donna and Reina have the crests of the Dragon Scale on their necks. Marumaro and Noi end up disguising themselves as one person so that Marumaro can use his shadow power to deactivate the Dragon Scales starting with Reina. It doesn't go well when their disguise eventually fails. Marumaro ends up enticed by their beauty until Noi ends up not showing off his jealousy. Donna and Reina end up attempting to entice Noi with their beauty making Marumaro jealous. When Donna and Reina end up trying to absorb Marumaro's jealousy energy, Noi ends up biting Reina. Using Saber Tiger, Marumaro ends up driving the Dragon Scales out of Donna and Reina. Once the Dragon Scales were destroyed, those that they have drained energy from were restored. As Shu starts to regain his energy, he finds out that the name of the girl that has been appearing in his dreams is Primella. He ends up waking up alongside Bouquet. With Donna and Reina still unconscious with Noi stating that they won't remember a thing, Shu, Bouquet, Marumaro, and Noi take their leave. Shu finds out that Marumaro had been worried about him and Bouquet. Shu and Bouquet then end up in another argument revolving around what happened between him and Donna and Reina.

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.

Shu heads out to the wetlands at the edge of Logic. Meanwhile, Jiro is attacked by the sea shore by some soldiers in white and fends them off when a man named Vermillion shows up telling them to fall back as Jiro is not a shadow wielder. Moments later, Delphinium and Deathroy approach the soldiers' camp to look for Dr. Tarkovsky. After 2 days of waiting all spot a cloud that's not moving with the wind like other do. They were pursuing it till it landed on mountains, where the clash with Mikhail begins. Meanwhile, Jiro follows the caravan of the soldiers in white until Delphinium appears. Mikhail gains the advantage with his red dragon shadow against Shu. After a long fight, Shu fuses with Bouquet and Mikhail crumbles to dust. However, it appeared that the Mikhail was another Dragon Scale clone, when the real Mikhail appears.

Noi reveals himself to be one of the 'Investiture Beings', but keeps it from Shu and the others to keep their trust. The battle with Shu and Mikhail rages on again with Mikhail unleashing his Red Dragon shadow even when Marumaro and Saber Tiger throw themselves in front of Mikhail's attack. Mikhail reveals his true form as the Red Dragon itself. Meanwhile, Lotarus notices the soldiers in white approaching. The warriors Vermillion and Furioso watch the fight recapping about Primella's prediction of Albarose' destruction when Dr. Tarkovsky appears identifying the Red Dragon as Mikhail as their tri-barrel technological weapons get positioned. Mikhail ends up overpowering Blue Dragon in fusion form. Shu refuses to give up when Mikhail starts attacking Noi for breaking the rules of the Investiture Beings. Then Noi transforms into his black dragon form, revealing himself in front of Shu and initiates the forbidden fusion with Blue Dragon to gain a new dragonite form and evening the odds with Mikhail. During the fight, the soldiers in white step in firing a tri-barrel weapon called the Brunack causing Mikhail to flee. The soldiers corner Shu and co. as Vermillion introduces them as the "White Brigade" and stated that their mission were absolute destructions of all shadows.

As the White Brigade prepares to attack Shu and the others, Shu fends off the White Guardians while Noi evacuates Bouquet and Marumaro away from the area. The White Guardians also retreats as Lotarus watches from afar. Mikhail is shown near a river badly wounded. Shu and Noi have a conversation regarding the events that occurred two years ago as the White Guardians continues their advancement. Later that evening, the village that Shu and Co. are resting turns out to be near the White Guardians' headquarters in the city of Nirvana. Bouquet uses her invisibility to listen out what the White Guardians is up to. Bouquet then unleashes Hippopotamus and takes the form of a White Guardian to throw them off track. Shu and Co. are spotted by some White Guardians, but are knocked out by Saber Tiger. Making their leave from the city, Shu finally encounters Primella in person.

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.

While traveling through the desert, Shu, Bouquet, Marumaro, and Noi come across a ghost town after a mirage incident. When Shu, Marumaro, and Noi find a girl they are attracted to, they get into a fight where Bouquet had to use Hippopotamus' shape-shifting ability to break it up. When Bouquet suddenly falls ill, Shu, Jiro, and Marumaro evade the ghost town's ghosts until they see a flying spider-like creature. They go after it on the back of Saber Tiger. When the giant spider causes a rockslide that brings to life rock monsters, Shu unleashes Blue Dragon who alongside Saber Tiger destroys the rock monsters. When Saber Tiger impales its abdomen with his attack, it unleashes a multicolored water that submerges them. While underwater, Shu notices a green plant and they head toward it while evading giant killer fish. They managed to make a hasty retreat to the surface. As Shu and Marumaro dive back in, Noi turns into his black dragon form and joins them. As Shu and Marumaro hold off the giant killer fish, Noi discovers that the green plant is alive. Blue Dragon manages to yank it out of the ground draining the water. They then end up back at where the scene of their mirage occurred in which it was all a dream.

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.

After thinking back to her last encounter with Bouquet, Lotarus enchants a butterfly with some of her power. Shu and Co. help a young girl carry a cart of food to her house. The butterfly that Lota enchanted spreads its pollen on the girl. The butterfly then puts Bouquet into a sleep where she dreams that she and Shu are finally married and have raised a family followed by a nightmare where Shu, Blue Dragon, Marumaro, Saber Tiger, and Hippopotamus are too cheerful. It soon becomes clear to Bouquet that Lota is behind this. The dream is soon disrupted when Marumaro's girl-chasing activity results in the butterfly's destruction.

Conrad and a Knight Master named Griz join up with resistance headed up by Legolas and Daner in a nearby city and joins him in exploring the ruins of the Investiture Beings there. Shu, Bouquet, Marumaro, and Noi arrive at the city as Lotarus is encountered by Delphinium and Deathroy. Deathroy unleashes Chimera as White Brigade's weapons fire at Lotarus. She manages to evade the weapons and Delphinium's shadow before turning into her dragon form. While Lota deals with Delphinium and Deathroy, she also unleashes winged creatures that attacks the White Guardians. Lota takes the opportunity to escape while Delphinium and the White Guardians are occupied. Shu meets up with Legolas and Conrad and they descend into the underground caverns that are underneath the city. Noi then reads the messages found on the floors of the cavern. When Shu has Blue Dragon punch the artifact on the wall, he is sucked in.

Marumaro and Bouquet unleash Saber Tiger and Hippopotamus to follow Blue Dragon into the artifact. Hippopotamus pulls a lever that causes Shu and the others to fall in as well. Noi finds ancient technology that opens a hole in the ground as he, Shu, Bouquet, Marumaro, Conrad, Griz, and Daner go down it. Upon coming to a room, Noi works on its keypads to learn about the technology. The security system is soon activated as thin robots attack. Noi manages to find a way out which they escape through. They soon come across a room where Mikhail in his Red Dragon form is recuperating. Mikhail wakes up and takes out Griz who tried to attack him. Shu unleashes Blue Dragon as Conrad does a failed attack on Mikhail. Marumaro and Bouquet unleash Saber Tiger and Hippopotamus to help Blue Dragon. Noi turns into his dragon form and merges with Blue Dragon while Bouquet and Hippopotamus merge with Marumaro and Saber Tiger. After taking a hit from the Blue Dragon/Noi combination, Mikhail escapes. Shu then thinks about what Mikhail and Lotarus have said.

Conrad, Griz, and Daner report what he has found underneath the city to Legolas. Upon remembering what Mikhail said, Noi tells Shu, Bouquet, and Marumaro that he is heading down into the ruins. Noi assumes his dragon form and flies down. While Bouquet and Marumaro have reached a disagreement, Conrad speaks to Shu about what to do with the Investiture Being ruins. Noi manages to get into the database when Lotarus in her dragon form arrives. A flying rock-like structure arrives floating above the city and is a threat if it lands on it. Shu unleashes Blue Dragon and checks it out. Panic occurs in the city as Griz and Daner speak with Bouquet and Marumaro. Blue Dragon attacks the rock structure as Bouquet, Marumaro, and Saber Tiger arrive to help. Bouquet and Hippopotamus merge with Blue Dragon and they attack the floating rock structure. Shu and Blue Dragon use whatever they can to destroy the rock structure and send its debris far. Lotarus takes her leave after this. Later that night, everyone is in the database room. As an eclipse occurs, secret data appears.

Noi starts to tell everyone about the Investiture Beings' city. At the same time, the Investiture Being leader Rudolph sends Hildegard and Fagino to attack Shu. At the same time, soldiers of the White Guardians train with the Black Shadow Type-Three robots while their Brunacks charge up. When it is charged up, it is fired at the Black Shadow Type-Three robots who lose their shadowy forms. Hildegard and Fagino have arrived on the outskirts of the city. Legolas ends up evacuating the city while the others engage Hildegard and Fagino. Elsewhere, the White Guardians start with their ceremony. Shu, Marumaro, and Bouquet unleash their shadows. Conrad, Griz, and Daner face the two Investiture Beings in unarmed combat. Hildegard uses her wind abilities on them. Back at Nirvana, Primella starts to have visions at the ceremony. While Noi is working on the database, Bouquet and Hippopotamus merge with Blue Dragon while Hildegard and Fagino bring out their dragon forms in their Shadow form. As Hildegard has her dragon use its elasticity on Blue Dragon, Bouquet and Hippopotamus split from Blue Dragon. Hildegard and Fagino counter every move that is thrown at them and managed to take them down. They even managed to detect Bouquet's invisibility as they advance toward the ruins. After destroying the city, Hildegard and Fagino assume their dragon forms and escape. With the ruins also destroyed, Shu's group and Conrad's group go their separate ways.

Shu, Bouquet, Marumaro, and Noi help two female bakers prepare a cake display for a town event to earn some money. But there are delays in the kitchen, and Noi and Bouquet has to stall the crowd until they are done. With help from Shu, they complete the cake display and use Saber Tiger to transport it there. When Blue Dragon bursts out the cake scaring the kids, Bouquet improvises by having Hippopotamus dress up as a superhero called Hipopotaman to fight Blue Dragon. Marumaro has Saber Tiger join the act to help Hipopotaman fight Blue Dragon. This only agitates Blue Dragon in the end who makes sure the party "ends with a bang".

Fagino arrives in a nearby village and uses his Dragon Scales to turn four scarecrows into fat clones of Shu, Bouquet, Marumaro, and Noi. At the same time, Shu and the others are travelling to that village when Marumaro starts to develop a crush on a local lady. Upon arrival, the villagers start to fear them and hide in their houses. Vegetables soon start flying out of their houses towards them causing them to run. Bouquet unleashes Hippopotamus and uses his ability to disguise herself as the lady from before to find out what is going on. Their fat counterparts soon attack again demanding vegetables. Shu and the others watch this as the fat Shu summons a fat version of Blue Dragon which causes the villagers to flee into their houses and throw vegetables from the window toward them. Shu and Marumaro unleash Blue Dragon and Saber Tiger to knock them down. This does not fare well with the villagers, who flee into their houses. Shu and the others confront their fat counterparts who then assault them, but they capture the lady. When Shu and the others find them, they threaten to barbecue Shu's Blue Dragon. Bouquet and Hippopotamus merge with Blue Dragon and destroy the fat Saber Tiger and fat Blue Dragon while Saber Tiger uses his attack to destroy the fat clones, turning them back to scarecrows. After seeing the Dragon Scale emerge and break, Noi concludes that Fagino was behind this. Marumaro frees the lady only to discover that she is actually a Dragon Scale that came from Lota. Shu and his friends are then approached by a mysterious robed person.

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.

Returning from a recon, Jiro and Xie inform Shu, Bouquet, Marumaro, and Noi about the White Guardians advancement and where they have set up camp. With some persuasion from Shu and the others, Bouquet and Hippopotamus shapeshift their way onto the airship that Primella is on. When she does get to Primella, Bouquet tries to get her to help them in any way. Later that night, Shu and Jiro lead a raid upon the White Guardians camp. One of Dr. Tarkovsky's henchmen leads the ground attack with their new hand cannon weapons as the airship takes off. While the others handle the White Guardians, Shu and Blue Dragon go after the airship only to be held back by the hand cannon weapons. Shu makes onto the ship where Primella was waiting, but Vermillion knocks him off where Shu falls into the forest below.

Recovering from the fall, Shu is informed by Jiro and Xie about the advancement in the war between the White Guardians and the forces of Rosekstan. Shu then realizes that the village Kluke is living in is right in the middle of the invading forces. Meanwhile, Kluke and Andropov notice one of the Resistance's airships arriving in the village. When they start attacking, Andropov unleashes Alubujem who uses a flash attack to enable his and Kluke's escape. Kluke and Andropov are then pursued by the airship which destroys their house. Riding on a recovered Saber Tiger, Shu, Bouquet, Marumaro and Noi arrive at the ruins of Kluke's house. They then encounter two of the children that Kluke has been educating who tell them everything that has happened. Kluke and Andropov are still on the run from the airship until they crash her hovercycle into a tree. The airship unleashes their armored warriors who bring out their artificial shadows to attack. Andropov unleashes Alubujem to defend himself and Kluke. With some of them defeated, things weren't looking good for Andropov when he gets exhausted. He still tries to defend Kluke even though he has reached his limit. When Andropov is knocked down, Kluke throws herself in front of him as Phoenix is unleashed. As the armored warriors charge toward Kluke and Phoenix, Shu and Blue Dragon arrive in the nick of time taking out some of the the resistance's shadow armours, forcing them to retreat. Upon learning of the current crisis, Kluke and Andropov join up with Shu.

Kluke uses Phoenix's ability to teleport the group to General Logi's hideout. When Shu shouts for a meeting with General Logi, he manages to allow it since he noticed Andropov with them. While Shu and Co. are talking with General Logi, Delphinium and Deathroy infiltrate General Logi's hideout looking for info that will help the White Guardians. As Shu and General Logi continue their conversation, one of Logi's men enters informing them that the White Guardians is attacking the Rosekstan forces. General Logi and Matilda leave as Andropov goes after them. As Delphinium and Deathroy find a room with giant exo-suits, General Logi talks with Andropov where the General still supports Andropov when he feels bad about what happened to Schneider. Shu and Blue Dragon leave to help the forces of Rosekstan fight the forces of the White Guardians. Blue Dragon destroys their Brunacks upon arrival. Outside of General Logi's hideout, Noi notices the White Guardians forces approaching in large numbers.

General Logi's base is attacked by White Guardians. Kluke, Marumaro, Bouquet, and Andropov unleash their shadows. Kluke has Andropov use Alubujem to locate Shu who is still fighting the White Guardian soldiers in his area. When the others catch up, Shu comes up with a plan. Noi assumes his dragon form and merges with Shu while Bouquet and Hippopotamus merge with Saber Tiger. General Logi unleashes his giant exo-suit soldiers to help fight the White Guardians. The White Guardians' air force starts to turn the tides against giant exo-suits. Delphinium and Deathroy continue their infiltration until they are teleported outside by Matilda and Zephyrus. Meanwhile at their floating city, the Investiture Beings discuss about the war between the White Guardians and the forces of Rosekstan. As the battle rages on, Kluke uses Phoenix's ability to teleport her, Marumaro and the Bouquet/Saber Tiger, and some White Guardian soldiers away from Shu and the Noi/Blue Dragon. Jiro and Xie arrive and join the battle. Meanwhile, Deathroy unleashes Chimera against Matilda and Zephyrus. Vermillion confronts Shu and the Noi/Blue Dragon and starts to attack. As White Guardian soldiers charge toward General Logi's hideout, they are attacked by General Logi and Odin.

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.

Mikhail starts unleashing shockwaves that destroy the Brunacks. Rudolph's presence starts to become known at the battle as he uses his city's defenses to fire a powerful laser which petrifies Mikhail and rises a giant wall that does the same to some of the soldiers on both sides causing them to retreat. Moments later, Shu and the others are at an inn where Kluke is recuperating. Shu and Andropov get into an argument which is broken up by Bouquet. Later that evening, Kluke wakes up. During dinner, Bouquet uses her invisibility to get Andropov, Marumaro, and Noi out of the room to leave Shu and Kluke alone. Shu invites Kluke to go outside and have a talk about their relationship. The next morning, Shu, Bouquet, Marumaro, and Noi go their separate ways from Kluke and Andropov.

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.

Shu, Bouquet, Marumaro, and Noi arrive in a ruins of a gourmet-themed town. They meet the town's mayor who recaps on how Fagino came to their town and had been dissatisfied with some of their gourmets. Fagino had made his own dish which was so good that everyone loved it. Before leaving, Fagino gave him a Dragon Scale. When the town wanted more of the dish, the town was thrown into chaos. After the story, the Dragon Scale the mayor was given causes him to unleash a demonic shadow that attacks the group. Upon the shadows being unleashed, Bouquet and Hippopotamus merge with Saber Tiger while Noi merges with Blue Dragon. Upon dodging the laser, acid balls, and wind attacks, the shadow is defeated by the Noi/Blue Dragon expelling the Dragon Scale from the mayor. Following that battle, Shu's group notices the weapon air fortress Sleipnir trying to penetrate the giant wall hinting to Shu that General Logi is trying find a way through it.

At a Rosekstan base, General Logi oversees the upgrades to the giant exo-suits while on Sleipnir, Matilda is given the status on the giant wall. Rosekstan's forces still try to breach the wall as Shu, Bouquet, Marumaro, and Noi arrive at the nearest village. Matilda resolves to use a powerful laser that would guarantee the wall's destruction at the price of the nearest village. As Saber Tiger is riding the others toward the giant wall, they are ambushed by Matilda and the exo-suit warriors. Not wanting Matilda's plan to happen, Shu unleashes Blue Dragon as Matilda unleashes Zephyrus.

At Rosekstan, Primella has a vision of a three-way battle between the White Guardian, Shu, and Fagino and a vision where Lotarus kills Kluke in a flower field. Meanwhile, Shu and the Noi/Blue Dragon and Marumaro and the Bouquet/Saber Tiger are in combat with Hildegard. Hildegard then assumes his dragon form as the Noi/Blue Dragon goes after him. Though Hildegard gets away. At a Rosekstan base, General Logi thinks back to the battle against the White Guardians when Matilda enters telling Logi that Delphinium and Deathroy have surrendered to them. Shu, Bouquet, Marumaro, and Noi arrive in a nearby town where they notice a factory. Back at Rosekstan's base, Delphinium is being interrogated by Captain Varenko.

At a nearby town, Shu has an encounter with Rudolph in the form of a male fortune teller. When in another dimension, Rudolph unleashes winged creatures upon Shu causing him to unleash Blue Dragon. Rudolph also brings out his dragon in Shadow form. Upon managing to pull off an attack on Rudolph, Shu ends up outside of the town as Rudolph unleashes his winged creatures upon it. Shu and Blue Dragon end up fighting them as some of them reach the city. Bouquet and Hippopotamus merge with Saber Tiger to fight off the winged creatures. Noi arrives and merges with Blue Dragon who begins to destroy a lot of the winged creatures. When Rudolph has the winged creatures attacking Marumaro and the Bouquet/Saber Tiger fall back and attack Shu and the Noi/Blue Dragon, the winged creatures ended up destroyed by the Noi/Blue Dragon. Rudolph then leaves after that.

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.

The Investiture Beings have begun their invasion by attacking towns. Rudolph even breaks part of the giant wall he had placed there to direct some of its remains toward some villages. When it came to the latest debris heading to a town, it is redirected by Shu and the Noi/Blue Dragon and Marumaro and the Bouquet/Saber Tiger. Afterward, Vermillion arrives with Primella and General Szabo. Primella explains her vision to Shu over some tea. Shu even has a private talk with Vermillion.

With Vermillion dead, Rudolph has the other Investiture Beings continue their invasion. When Shu and his group go their separate ways to look for Kluke, Shu and Primella run into Lotarus. Meanwhile, Delphinium and Deathroy have a run-in with Hildegard and end up battling. After a talk with Primella, Shu has a duel with Lotarus. Lotarus brings out her dragon in shadow form while Shu unleashes Blue Dragon. Lotarus manages to overwhelm Shu, but decides to spare his life. Meanwhile, Jiro and Xie have been taken prisoner by General Logi.

When Rosekstan's troops trap some of the winged creatures, Matilda uses Sleipnir's laser cannon to eliminate them. As Jiro and Xie are prisoners in Rosekstan's dungeon, General Logi and his troops fight off the winged creatures that came with Hildegard. Jiro and Xie managed to escape while General Logi and Hildegard unleash their shadows. Jiro manages to confiscate one of the armors and joins General Logi in the fight. General Logi and the armored troops try to take Hildegard down with a powerful attack, but no avail. Hildegard wrecks the armor Jiro was in causing it to crash to the ground. Jiro tries to use his sword to fight Hildegard who is too quick for him.

In a stormy volcanic area, Noi runs into Legolas nearby Z'Mey: a dragon sanctuary. Conrad also arrives with Griz and Daner. Meanwhile, Marumaro and Bouquet continue their search for Kluke. At a nearby town, Kluke is shown tending to the injured. Daner shows Noi an artifact that Conrad's group had found. Noi then leads Legolas, Conrad, Griz and Daner into Z'Mey and go through many obstacles to get to the main chamber. Meanwhile, Shu sees a nearby town that is annihilated when Rudolph arrives. Shu and Rudolph unleash their shadows and fight. Noi places the artifact in the area and it unveiling a shuttle called Mast Driver and its pyramid-like platform. The light it emits is noticed by Shu and Rudolph as Rudolph leaves. Meanwhile, Bouquet and Marumaro have met up with Kluke at the area where Primella's vision of her took place.

Having met up with Kluke, Bouquet and Marumaro work to prevent Primella's vision from coming true. Meanwhile, Noi researches the pyramid structure that just surfaced. Kluke finally learns about an attempt on her life as Lotarus arrives with some winged creatures. Shu and Primella meet up with General Szabo while General Logi's forces advance. Delphinium wakes up in a cottage and learns from the man who found her that Deathroy had kept her safe from Hildegard. Marumaro unleashes Saber Tiger to fight Lotarus while Bouquet gets Kluke to safety. Andropov arrives to help Marumaro. When Kluke and Bouquet end up in a flower field, Lotarus attacks Kluke. However, her attack missed Kluke and Lotarus departs with her attack force. Meanwhile, Shu, Primella, and General Szabo arrive at an area where the forces of Rosekstan and the White Guardians are going to fight each other.

Shu gains an unlikely audience with Dr. Tarkovsky who learns about Vermillion's demise. The White Guardian soldiers set up a trap filled with food which Fagino falls for when he transforms into his dragon form. Some of the food he ate contained electrical spikes that seal up Fagino's mouth. As the White Guardian soldiers are assaulting Fagino, Primella receives another vision. Furioso does a fatal blow toward Fagino only to discover that it was a clone made from a Dragon Scale. Fagino emerges and overloads the spikes that were placed in his mouth. Fagino then attacks the White Guardian soldiers. As Fagino tries to destroy Furioso, Shu unleashes Blue Dragon and attacks Fagino. With Blue Dragon keeping Fagino busy, Furioso ends up slicing off his right arm causing Fagino to retreat. Dr. Tarkovsky then tells Furioso and his troops to spare Shu and Blue Dragon.

Following the vision of Primella, Dr. Tarkovsky leads Shu and the rest of the White Guardians to Z'Mey. At Z'Mey, Noi is researching the Mast Driver just as Bouquet, Marumaro, Kluke, and Andropov arrive. Shu also arrives with Primella as the conversation continues on Dr. Tarkovsky's airship. After the conversation, one of the soldiers enter and report that the Investiture Beings' winged creatures are heading their way. The White Guardians prepare their defenses against the winged creatures. As Conrad and Griz join the fight, the winged creatures overwhelm the White Guardians.

Dr. Tarkovsky is given the status of the Mast Driver. Fagino's shadow does an attack on the Noi/Blue Dragon which causes Noi to separate. Marumaro and the Bouquet/Saber Tiger managed to destroy Blizzard Dragon. Conrad sacrifices his life to protect Shu from Fagino's attack. While Marumaro and Andropov keep Moody Dragon busy, Kluke has some words with Furioso. When Amethyst Dragon starts to attack them, it is destroyed by Rosekstan's Sleipnir airship as Jiro arrives. Hildegard has her shadow constrict Blue Dragon as Fagino moves in to eliminate Noi only to be intercepted by General Logi.

Rudolph recalls Hildegard and Fagino to his castle when the Mast Driver approaches their realm. As the Mast Driver approaches the area, strange aircraft attack. From within their ship, Shu and Marumaro send Blue Dragon and Saber Tiger out to fight them. With help from Noi, Blue Dragon and Saber Tiger trick the aircraft into crashing into each other. They finally arrive at the Investiture Beings' castle. Fagino is sent to attack them and unleashes his shadow. The other Investiture Beings watch from their castle.

When Fagino attacks, Noi gives Shu the ability to merge with Blue Dragon to form a full version of Blue Dragon. However, something happens to cause Blue Dragon to not be able to move. Bouquet and Hippopotamus merge with Saber Tiger to defend him from Fagino. Shu manages to get control of it just as Marumaro and the Bouquet/Saber Tiger are defeated. Upon taking a beating from the Shu/Blue Dragon, Fagino assumes his dragon form and fights back. When Blue Dragon gets the upper hand, Fagino unleashes energies and quickly punches Blue Dragon. When Fagino and the Shu/Blue Dragon's attacks collide, Blue Dragon's attack goes through and destroys Fagino. News of Fagino's destruction reaches the other Investiture Beings. As Shu is recovering from the experience, Rudolph begins to broadcast a transmission throughout his realm where it revealed what happened with Lotarus' encounter with Noi back at the Investiture Beings ruins.

When Rudolph finds Lotarus guilty of what happened in her encounter with Noi, Lotarus is forced to fight Hildegard. When Lotarus manages to get Hildegard's elongated head, arms, and tail stuck, she is caught by surprise by the emergence of Hildegard's second head. When Hildegard frees himself/herself, Hildegard attacks Lotarus just as Shu arrives However, it was actually Bouquet in disguise as a diversion for Shu to have Blue Dragon attack Hildegard. Shu has Blue Dragon catch Lotarus and give her to Bouquet. Shu then engages Rudolph. After a brief talk, Shu and Rudolph unleash their shadows. Bouquet and Hippopotamus merge with Saber Tiger while Shu merges with Blue Dragon. As Primella starts to suddenly glow, the Shu/Blue Dragon charges toward Rudolph.

The battle between Rudolph and the Shu/Blue Dragon begins. Rudolph's shadow is matching blows with the Shu/Blue Dragon and nearly defeated Marumaro and the Bouquet/Saber Tiger. Rudolph starts to overwhelm the Shu/Blue Dragon. When Rudolph overwhelms the Shu/Blue Dragon sending him into a ditch with Primella and Dr. Tarkovsky falling after him. The attack also defeats Marumaro and the Bouquet/Hippopotamus. Noi even tries to have some words with Rudolph. Primella continues to glow and makes contact with Shu mentioning how she was a part of Zola before being separated from her by Killer Bat. After the talk, the Shu/Blue Dragon rises to continue his fight with Rudolph. Noi assumes his dragon form and tries to fight Rudolph, but to no avail. Before Rudolph can finish Noi off, the Shu/Blue Dragon saves him. Bouquet re-merges with Saber Tiger to assist Shu in the fight with Rudolph.

Shu continues his fight with Rudolph. After taking a blow from Blue Dragon, Rudolph assumes his dragon form. Rudolph and the Shu/Blue Dragon are easily matched until Rudolph manages to strangle him. He repels Noi and the Bouquet/Saber Tiger. When Rudolph starts to finish off the Shu/Blue Dragon, Noi unleashes his power which enables his dragon form to get bigger. With this occurrence, Noi engages Rudolph. Both of them are easily matched. Right when Rudolph was about to finish off Noi, he is hit by an attack launched by the Shu/Blue Dragon. Rudolph enters a portal that he created and the Shu/Blue Dragon follows him into it. The Shu/Blue Dragon follows Rudolph into an area where he uses a war machine to defeat the Shu/Blue Dragon. The Investiture Beings' castle is starting to change shape into a large dragon-like war machine. Kluke uses her forcefield ability to protect them from its attack. Just then, Rosekstan's forces arrive as Shu's unconscious body is approached by Primella.

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.

Things aren't looking good for Rosekstan and Shu's allies. Just then, the Shu/Blue Dragon emerges with Primella in its hand. Primella wakes up as she is given to Dr. Tarkovsky and General Szabo. Rudolph emerges from the war machine and fights the Shu/Blue Dragon. They match blow to blow until Rudolph uses his intangibility to keep the Shu/Blue Dragon from hitting him and then multiplies to attack the Shu/Blue Dragon. With help from Primella, the Shu/Blue Dragon destroys the duplicates. The Shu/Blue Dragon collides its punch with Rudolph's punch. The hopes of Shu's allies, Marumaro's siblings, and even the thought-dead Conrad, Griz, and Daner help give the Shu/Blue Dragon the strength to fight Rudolph. Their combined attacks results in an explosion that destroys the winged creatures and the dragons that Rudolph had summoned. As the Shu/Blue Dragon falls to the ground, Rudolph starts to crack up and explode taking his war machine with him.