Classmates Alice, Julie, and Reika wonder if that was Lain they saw at the nightclub Cyberia. To find out, they invite Lain to go with them to the club.

Young children are acting strangely, arms outstretched and silently staring at the sky. A shocking vision suddenly appears in the skies; it looks like Lain! Determined to get to the bottom of this, Lain's investigations finally bring her to the creator of KIDS -- but what she discovers is not what she hoped for.

Lain struggles with her identity. Is she a human being, or just a hologram? And are the Knights responsible for the Evil Lain? Lain decides to deal with the Knights once and for all.