Char’s Falmer continues to fire missiles at Side 7, causing substantial damage. Cadet Ryu Jose tries to take over a gun turret, and Captain Paolo Cassius is injured by shrapnel. Debris nearly kills Fraw, but Amuro shields her with the Gundam‘s hand. She helps three children named Kikka, Katz and Letz, and medical student Sayla Mass asks her for help. Fraw sees injured Paolo, who gives Bright orders to move the White Base out of Side 7. Bright tells Paolo there are no pilots left because all of Side 7’s military personnel are dead. A young woman named Mirai Yashima volunteers to pilot the ship out of port, and Paolo is surprised to hear she’s from the famous Yashima family. Char calls Vice Admiral Dozle Zabi to report that the ship they chased is part of Operation V, and he asks for more mobile suits. Dozle agrees to send more Zakus and orders Char to capture the Gundam. Char decides to infiltrate Side 7, but without mobile suits. Bright contacts the Gundam and is shocked that the pilot is a boy. He wants to remove Amuro from the Gundam, but the attack continues. Sayla, Fraw and Ryu help the injured and force cowardly Kai Shiden to help them. Dren fires missiles at Side 7, which creates enough of a distraction for Char and his men to enter from space. Paolo asks Bright to have the spare mobile parts destroyed. Amuro thinks they should use the parts to build more mobile suits, but Bright points out that destroying them is better than letting the Zeon have them. Fraw and Sayla separate to search for survivors throughout the colony. Fraw begins to cry when she drives by her house, and Sayla spots Char investigating a destroyed Guntank. She grabs a gun from the glove compartment and gets out of her car.
Char takes pictures of the Guntank, and Sayla pulls a gun out on him and tells him to stop what he’s doing. He realizes that she looks exactly like his sister Artesia. He takes off his mask, and Sayla wonders if he is her brother. Char uses the distraction to kick the gun out of her hand and escape. Amuro arrives and picks up Sayla before destroying the mobile suit parts with a super napalm. As the Gundam climbs the lift to the docking bay, Char escapes through the open hatch. Paolo orders Bright to seal the ship’s hatches and issue guns to everyone. Hayato, Ryu and Kai grab machine guns and shoot at Char. Char avoids them and takes pictures of the White Base. Bright jumps out of a hatch and shoots at Char and misses, but he manages to destroy Char’s camera. Char and his men escape into space, and he orders Dren to send out Zakus for himself and Slender. The Gundam emerges from Side 7, and Amuro targets Char and his men. He tries to shoot them, but they are too small to target with the beam rifle. The White Base leaves Side 7, and Bright orders Amuro to stick close to the ship and defend it. Char returns with his red Zaku II (Commander Type), which moves three times faster than normal. Paolo knows that it’s Char, the Red Comet, and remembers that Char singlehandedly destroyed five battleships at the Battle of Loum. Amuro tries to fight Char and finds that Char moves too quickly. Ryu decides to launch in the Core Fighter, despite having limited simulation experience. Ryu attacks, and Amuro manages to destroy Slender’s Zaku. Char is shocked that the Gundam’s beam rifle has the power of a battleship cannon. He decides to retreat for the moment, and Amuro and Ryu return to the ship. Bright tells Amuro to improve his skills, and he places him in charge of the Gundam’s maintenance. Amuro objects, and Bright tells Amuro he’s free to hate him if he wishes. The White Base heads for the EFF asteroid base Luna II.
The attack started in episode 1 continues here and makes up a substantial portion of this episode. Here we’re introduced to the rest of the main cast, as well as some mysteries, mainly the relationship between Char and Sayla. Their secret is revealed much later in the series. Also, we get to see the historic first battle between Char and Amuro. As expected, Amuro doesn’t do so well because he’s an amateur, and Char is an ace pilot. About the only thing keeping Amuro alive is the incredible power of the Gundam. That’s something both he and Char are aware of. There’s also the establishment of conflict between Bright and Amuro, because Amuro certainly doesn’t want to be the Gundam’s pilot. It is war, so he doesn’t have much of a choice in the matter. The conflict between them and what military protocol is will be a lasting theme in this series.