Midnight fights a battle with Erza and Jellal; being weakened from the destruction magic, Jellal loses the fight easily. After initially being overwhelmed, Erza figures out the true form of Midnight's magic and prepares to fight him again. Meanwhile, Wendy searches for Jellal in order to find the necessary information that will help Natsu and the others stop Nirvana.

Lucy Heartfilia is a transfer student at Fairy Academy. So are Natsu, Wendy, Erza, Gray, and the gang. But with such unpredictable classmates in Fairy Academy, trouble is not far ahead. A rival school is causing trouble for the gang, Gajeel and Juvia at the head, and Natsu and Gray set out to stop them. Meanwhile, Erza, the class president, is experiencing romance issues about a handsome stranger.

Happy and Charle rush back to the city to save their friends. Meanwhile, Lucy is imprisoned and she pleads Erza Knightwalker to let her go and save her friends. The Edolas Erza attempts to kill Lucy by dropping her from the tower with her spear. But Happy and Charles save Lucy from her fall. Charles finds out Natsu and Wendy's location. The magic-crazed King activates Code ETD (Exceed Total Destruction)on the Exceeds that were after Charles and Happy, turning them into lacrima. Erza ambushes the three of them, but Earthland Erza and Gray step in to save their comrades.

Natsu attacks the black-haired youth to no effect, causing the youth to despair that Natsu is not strong enough to defeat him. The youth unleashes another wave of death magic against Natsu and disappears, but Natsu is protected from the attack by his scarf, which turns black. Despite the encounter, the participants continue their exam as usual. Meanwhile, the most powerful dark guild of the Baram Alliance, Grimoire Heart, approaches Tenrou Island in search of the youth, who is revealed to be the ancient wizard Zeref. Levy, who separates from Gajeel after arguing with him, is attacked by Grimoire Heart members Yomazu and Kawazu. Gajeel rescues her, and the two prepare to fight against their attackers.

An all-new original story storyboarded by Hiro Mashima, the author of Fairy Tail, released on February 17, 2012. "Natsu's Secret" is going to be revealed in the "Past World"?! Guided by a "magic book" that's lying in the Guild's storage room, Natsu, Lucy, Happy, Gray, and Erza have traveled back into the past!!