The great war between the Earth Federation and the Principality of Zeon is almost over. At a neutral space colony, Side 6, the Federation is secretly constructing a powerful new Gundam. A young boy, Alfred Izuruha, and his friends are fascinated by the war and the mobile suits. As Al plays in the Federation base he accidentally films the newly-arrived Federation mobile suit from the Antarctica base, Gundam NT-1 "Alex." When the Zion's attempt to destroy the Gundam fails, Al follows a damaged Zaku to its crash site and meets its pilot, novice pilot Bernard "Bernie" Wiseman. Bernie himself falls for Al's neighbor, the charming Christina MacKenzie. She is the test pilot of the Gundam that Bernie is trying to destroy. Al will come face to face with the realities of war, changing his life forever.
Al quickly hides on a pipe as the Federation Forces soldiers walk by. He sneaks through the conduit back to Bernie and tells him he got pictures of a Federation mobile suit. Bernie says they could have been caught, but he is glad they got the pictures and figures that Steiner will love it. They print the pictures, and Bernie sees it's not a GM.
Al and Bernie repair the damaged Zaku to fight the Alex. Bernie needs weapons for the Zaku, which Misha hid on two trucks. When they arrive at one of the parking lots, the Federation Forces are towing away the truck. They head for another parking lot and find the Federation Forces there as well.
At Granada, Killing is informed that Operation Rubicon has failed and that the Gundam is still in Libot. He sees his commander overriding an order to load nuclear weapons onto a warship. Killing tells him he never asked permission, and his commander asks him if he plans to violate the treaty. Killing says that Side 6 never signed the Antarctic Treaty and then shoots his commander. He takes command of Granada and orders the loading of the nukes to continue.
Al holds on to Garcia's truck as it drives through the city. Al takes notice of where they are headed, but Garcia takes a sharp turn, and Al is thrown from the truck. He gets an idea and decides to visit the police. He tells them that the four trucks are suspicious, but the police don't believe what he is says.
Al takes pictures of the damaged Zaku and sees the pilot pointing a gun at him. He tells the pilot, Bernard Wiseman, that he got shot down badly. Bernie becomes angry and says he doesn't want to talk to a stupid kid. Al asks Bernie if he can look at the gun, and Bernie refuses. Bernie sees Al's camera and grabs it to examine the pictures. He sees pictures of himself, Chris, and the cargo container. Al jumps Bernie and knocks him down to get the camera back. He bites his hand and grabs the camera back. Al pauses when he sees Bernie's rank badge and seems to be fascinated with it. Bernie offers to give Al the rank badge in exchange for the camera, and Al agrees.
In late UC 0079 the war between the Earth Federation and the Principality is near its end. In the Arctic, the Zeon Jukon class submarine U-99 approaches the Federation Forces Arctic base. The elite Zeon Cyclops Team launches from the U-99 with Hygogg and Z'Gok-E amphibious mobile suits.