A haggard Kan Yu runs through the forest and is attacked by Veela guerillas. He runs away from them, and they chase him to a clearing and shoot at him. Kan Yu hides behind a rock, and Shako kills the guerillas with his Berserga. He asks Kan Yu if he’s okay, and Kan Yu tells him he hasn’t eaten or slept in three days. He asks where Chirico is, and Shako tells him he went to attack Kanjelman’s palace. Kan Yu passes out and wakes up at the Assemble base with Gon Nu watching over him. He tells Gon Nu that they have to attack Chirico quickly, but Gon Nu says he will wait for the mop up operation to move in and get Fyana. Kan Yu thinks they need to attack because of the distance to the palace, but Gon Nu tells him that the government forces control nearly all of Kummen now. Elsewhere, Potaria watches as the Veela retreat to the palace. Fyana draws a map of the palace in the dirt and points out where the Veela weapons are located. Kiderra can’t believe they were fighting a war with so little weaponry. Potaria says they have to face the Veela in front of them now, and Chirico says they will do so by becoming guerillas themselves. At the palace, Kanjelman’s advisors tell him that the sudden pullback has confused the soldiers and angered their commanders. Kanjelman says there is no reason to worry and tells everyone to get back to work. In the forest, Monica argues with several other guerillas over the order to retreat. Chirico blocks a Veela truck and shoots at it with his gun. Pilots attempt to get into their Standing Turtles, but Chirico shoots them. One pilot manages to mobilize, but his unit is destroyed by Kiderra and Potaria. Chirico tells them to switch over to the Standing Turtles before the Veela arrive. The Veela guerillas spot the Diving Beetles, but Kiderra and Potaria destroy them with their stolen Standing Turtles. Kiderra, Fyana and Potaria board the AT transport truck and Chirico gets in the cab to drive it.
Monica walks through the palace and is dismayed by all the talk about how they’re going to lose the war. Kanjelman’s advisors tell him that the retreat will be complete in an hour and that so far the enemy has not moved against them. Kanjelman walks through the palace and overhears a conversation between Ypsilon and Borough. Ypsilon wants to kill Chirico so that Fyana can be turned back to their side, but Borough tells him to wait until his new AT arrives. After Ypsilon leaves, Kanjelman tells Borough that he has lost all hope and knows that the old ways and everyone who fought for them will be destroyed. He says that perhaps the war was nothing but his own experiment. Monica overhears Kanjelman and pulls out her machine gun. Kanjelman approaches her, and she drops the gun and runs away. Chirico drives the AT truck through several roadblocks and heads for the palace. Ypsilon wants to attack the strike team because he knows Chirico is part of it, but Borough again urges him to wait for the new AT to arrive. Chirico smashes the truck through one of the palace’s gates and mobilizes in his Marshydog. Fyana, Kiderra and Potaria help him to destroy the first wave of Standing Turtles. Potaria then goes on foot so he can enter the palace and kill Kanjelman. Potaria uses his machine gun and grenades to kill the attacking soldiers. He infiltrates the palace and kills several more soldiers before running into Monica. Monica approaches Potaria and is caught in the crossfire when another soldier attacks. She tells Potaria that the war was meaningless and that Kanjelman’s motive was just to bring chaos to Kummen. Before dying she tells Potaria that she was glad to see him again. Chirico and Fyana head for the armory while Kiderra goes deeper into the base. Fyana switches over to a Brutishdog and is watched on video surveillance by Ypsilon. Borough tells him that his new AT has arrived. In the air, Assemble’s AT Flys airlift a large number of Diving Beetles to the palace. Fyana leaves a grenade behind to blow up the ATs left in the armory.
The final battle has begun with Chirico’s attack on the palace and the approach of the Assemble forces. We see that Kan Yu is indeed alive, but he’s not looking so good after spending a few days in the jungle. Monica and Potaria are reunited, but she is tragically killed before his eyes in typical mecha anime fashion. Kanjelman’s view of the war has changed from before. At first, he was a determined man who believed in his cause. Now, he’s resigned to failure and awaiting destruction. Ypsilon is eager to kill Chirico, and now he has a chance with the arrival of his PS custom use AT.