Faldio attempts to socialize with Alicia with mixed results. Despite Squad 7's success in capturing the Vasel Bridge, General Damon of the Gallian Regular Army remain disdainful of the Militia forces, and chose to omit Squad 7 in the assault on Kloden base, leading to widespread resentment from the Militia. Alicia was troubled by Welkin's quiet acceptance of the omission, but Faldio seizes the chance to encourage her to have more faith in Welkin. Damon was subsequently defeated by General Gregor of the Imperial Army. Squad 7 was subsequently chosen to attack Kloden, with support from Faldio's Squad 1. Thanks to Faldio's provocation, a mortified Alicia ended up slapping Welkin by accident.

With ulterior motives in mind, Imperial Central Command dispatches three aides to serve the Generals. Karl Oswald, aide to Selvaria, finds his new commander intimidating and cold towards him. Meanwhile, Prince Maximilian is summoned back to the Imperial Capitol alone, much to Selvaria's chagrin. Sensing a plot behind Maximilian's recall and the three aides' sudden appearance, Jaegar suggests that Selvaria should act according to her instincts. However, Selvaria's initial attempt to go after the Prince is thwarted by Karl's insistence on following regulations. An assassin from the Capital attempts to murder Karl; Selvaria dispatches the assassin, and Karl confesses that he was sent to prevent Selvaria from accompanying Maximilian to the Capital. He proceeds to redeem himself by driving Selvaria and Jaegar to catch up with the Prince, where he subsequently witnesses Selvaria in action against assassins sent against Maximilian, and also discovers the reason behind her nickname, the "Azure Witch". Maximilian survives the attack unharmed, much to his older brother, the Crown Prince's consternation. Karl is relieved that Selvaria accepts him as her aide.

The Gallian Militia receives new orders to attack the Imperial fortifications at the Mulberry Coast. However, due to the terrain, the only possible direction of attack is along the shoreline, which is completely exposed to the base's formidable defenses. Worse, the attack is scheduled to take place at the same time as the Holy Spirit Festival, a holiday that all Gallians celebrate. Squad 7 makes the best of the situation, and still manages to celebrate as the everyone give gifts to each other. Isara gives Rosie a handcrafted good luck charm doll, which Rosie accepts. Later, Isara manages to manufacture smoke shells for the Edelweiss to give Squad 7 a chance. During the attack, the smoke obscures the defender's line of sight and allows Squad 7 to breach the defenses. Emboldened by the Militia's success, the Regular Army finally joins the fight and forces the Imperials to retreat. Rosie is saved from being killed by a sniper thanks to the good luck charm from Isara. As the battle ends, her attitude with Isara begins to soften as she begins to view her more as a friend. As they converse, Isara is shot and killed by an Imperial sniper, much to Rosie's shock.

The Gallian and Imperial forces battle each other in the streets of Randgriz. However, Maximllian is able to seize the Holy Lance of the Valkyrur, a massive Ragnite weapon which was hidden inside the structure of Randgriz Palace, and equip it as the main cannon of the Marmotah. After demonstrating the power of the lance by demolishing a hill, Maximlian calls on the Gallians to surrender or be destroyed. Jaegar confronts Maximilian about his lust for power, but Maximilian replies that power is the only thing one needs. He also states Jaegar that he executed Karl for standing in his way, and threatens Jaegar with the same fate if Jaegar proves disloyal. Marmotah then tries to fire on Randgriz, but is stopped by Alicia, who survived the explosion at Ghirlandio. Seriously weakened from her battle with Selvaria, Alicia faints after blocking a second shot, and is captured by the Imperials. Jaegar declares he will no longer serve Maxmillian and is shot. Welkin, Faldio and Squad 7 storm the Marmotah in an effort to save Alicia.