Amuro Rei is under house arrest at a great mansion in Cheyenne. Amuro has lost much of his fighting spirit during his seclusion. This angers Katsu, who has looked up to Amuro as a hero. Beltorchika Irma, emissary from the association of former White Base crewmembers who support AEUG called "Kalaba" arrives in a replica biplane. She tells Quattro that the Kalaba can get three of the earthbound AEUG Mobile Suits back into space to rendezvous with the Ahgama. She is anything but shy and openly displays an amorous interest in Amuro. Rosamia attacks Audomura in the Gaplant again in an effort to regain Braun's favor. Katsu goes out in the Mark-II in order to shame Amuro into fighting. Rosamia almost kills the boy before Camille, in the Rick Dias, and Quattro, in the Type-100, fly to his rescue. Irma is something more than sympathetic as Amuro berates himself for his own inability to do battle. Katsu redeems himself for creating the current crisis by defeating the Gaplant with a surge of Newtype power. Hyato is angered by his son's actions but grudgingly forgives him as Audomura changes course for the Kalaba base at Hickory.
The AEUG leadership approves Camille's enlistment as a regular soldier. Camille isn't sure he wants it, but accepts in order to continue piloting the Mark-II 03. He's concerned about his ability to control his latent Newtype powers. The Ahgama docks at Bunch 30 in Side 1 so that Camille and Emma can witness first-hand Basque's atrocity: three million inhabitants were killed with G-3 nerve gas to suppress anti-EUG activity there. Bunch 30 is now a cosmic ghost town. The Bosnia arrives and Layla leads her commando team into Bunch 30 to size up the opposition. Overhearing the AEUG explanation of the Bunch 30 Incident, she confronts the group with the Titan version -- AEUG rabble-rousers fomented a rebellion. Hostilities escalate and move outside, where Layla's Galbaldy-Beta is soon locked in mortal combat with Camille's Mark-II. The battle triggers Camille's Newtype powers and he kills Layla with a shot right through the cockpit. As she dies, Layla perceives the truth and projects her regret that there is no resolution to the conflict between Earth and its space colonies. Jared is devastated by Layla's death and calls off the attack. He swears vengeance against the pilot of the Mark-II, fulfilling Camille's vision of an endless cycle of violence and enmity between the two. Camille is confirmed as an AEUG soldier/pilot and, having witnessed the devastation of Bunch 30, has no regrets over Layla's death.
Reccoa is captured just after landing in the Amazon. She is rescued by Kai Shiden, who piloted the Guncannon (RX-77) during the One Year War, but is now a war correspondent working with AEUG. Kei tells Reccoa that the Titans are moving their HQ out of Jabrow and together they plot to capture a base radio station and transmit this information to the Ahgama. Camille is spending most of his spare time fixing Haro, so much so that he's late for a command staff meeting. Won Lee is outraged by Camille's tardiness and backtalk and "disciplines" the boy by beating him up. Camille recovers in the men's locker room where Quattro, Appori and Roberto are getting ready to test the new Anaheim Electronics Type-100 (MSN-100). Quattro is planning a raid on Granada to capture supplies and the New Salamis-type battleship being built there. Camille joins him in the Mark-II 03. Aboard the Alexandria, Basque's personal aide Jamaican Daningan is also inspecting the new Marasai (RMS-108), which are also built by Anaheim Electronics. Corcoran spots the AEUG Mobile Suits on the lunar surface while monitoring Ammon and orders an attack on the Ahgama with a squad of Hizacks. Emma goes out in the Rick Dias to defend the Ahgama. Quattro and Camille take control of Grenada in a quick battle. Camille's Newtype powers alert him to Emma's predicament. He returns to Ammon just in time to save Emma and turn the tide of battle against the Titans. Reccoa and Kai infiltrate the Titan HQ in Jabrow.
Scirocco is given twin Newtype cadets, Sara and Sidra Zabiarov, and sends them on a training flight with Jared's Marasai squad. Camille checks out Z-Gundam and learns that Fa is now an AEUG sergeant and Mobile Suit pilot. Henken sends Reccoa to the Ahgama with two new weapons, the Methuss (MSA-005) and the G-Defenser spaceplane, and a present for Emma. Camille mopes over Four while talking to Fa. Jared and the Titan cadets intercept the Methuss and G-Defenser near Side 2. Camille sees this in a Newtype vision and takes off in Z-Gundam followed by Emma in the Mark-II and Fa in the Rick Dias. Jared realizes that Camille is flying the new Mobile Suit and leaves his trainees to go after him. Sara cripples Fa's Rick Dias, but Sidra is killed by Camille and Jared is forced to retreat as his cadets begin to panic. Scirocco is disappointed, but not overly concerned, by the loss of Theodora. He's impressed by Sara's potential and goes out of his way to charm her, taking advantage of her obvious crush on him. Fa is reprimanded for taking the Rick Dias out without authorization. Reccoa thanks Camille for his help and delivers Henken's belated gift to Emma.