Ruby Rose, a girl who admires Huntsmen, along with her elder sister Yang Xiao Long enroll into Beacon Academy, a training school for Huntsmen. Her talents were discovered by Ozpin, the school’s Headmaster. Weiss Schnee, heiress of the world’s largest Dust manufacturing company, the Schnee Dust Company (S.D.C.), has disagreements with her father, defeats Arma Gigas, and leaves. Blake Belladona, a former member of White Fang, a terrorist organization and sworn enemy of the S.D.C., also leaves her organization. These two girls also become new students at Beacon. With hope and secret passion in their hearts, the story of these four girls who dream to become Huntsmen, now begin.

Young boys and girls wanting to become Huntsmen gather to attend Beacon’s entrance ceremony. As everyone gathers, a shy Ruby is being urged by Yang to make friends. However, after being dismissed by Blake and angering Weiss, she gets depressed. Ruby begins to feel uneasy when she learns about her upcoming placement test, which will determine the team members she would spend the rest of her school days together. As all new students must enter the forest where dangerous Grimm lurk, Ruby, impatient with the test’s rule of teaming up, pairs with the first person she sees, but…

On her snowboard, Ruby slides down the snowy field. Weiss, possessed by the Grimm “Nightmare”, created a world in her dreams, which is a reflection of her mind. With the help of Shion, a Huntsman specializing in the Grimm “Nightmare”, Ruby sneaks into Weiss’ dream and heads toward the place where the “Nightmare” had taken root. Those possessed by the “Nightmare” will be entrapped in a nightmare where Aura and life will be deprived. Weiss was already in a dangerous condition. Ruby was so eager to quickly free Weiss from the “Nightmare” but the world reflecting Weiss’ mind, block’s Ruby’s way.

Attacked by Weiss and finding herself cornered, Ruby is rescued by Shion. Even after she had awakend from the dream, Ruby starts to feel uncertain having heard Weiss’ aggressive words. However, she decides to take on the challenge once again and returns to the dream, this time accompanied by Yang and Blake. In the dream, the empire, ruled by the Schnee family and protected by Nega-Weiss, had increased their alert levels due to Ruby’s escape. Seeing how important the Schnee family is to Weiss and also her fear and hatred toward the White Fang, the three girls get confused but nevertheless make their way into the dream.

The city falls along with the deformed Sillies and the robot soldiers affected by the bugs’ rampage. As the situation gets chaotic, Nega-Weiss shows up with a giant statute of Nicholas, capturing the Sillies one after another. Although Jaune bravely confronts the statue of Jacques, who is wearing armor that’s reminiscent of Grimm “Geist”, he and Pyrrha, a resident of the dream, are captured. Meanwhile, Ruby’s party manages to reach the core of the dream where the “Nightmare” had rooted, but Nega-Weiss stands in their way. Yang and Blake are swallowed into the glyphs and disappear.

In the dorm room, Weiss, smiling, hands Ruby a cup of coffee and the two talk. Weiss leaves the room saying, “There is a reason for everything.” It was Ruby’s dream, who was possessed by the “Nightmare” due to her weakening spirit. Ruby awakes just in time with Jaune’s help. Meanwhile, Yang and Blake had been sent to a mansion, which looked like it was symbolizing the history of the conflict between the White Fang and the S.D.C. Ruby, who had returned to Weiss’ dream, and Blake each propose a new plan.

Freed from the nightmare, Team RWBY resume their school life. The teammates had opened their hearts to each other more than before. Ruby decides to do her best as leader, and Yang supports her younger sister’s decision. Weiss and Blake promise to accept each other as teammates.