Alicia is kept isolated from Squad 7 by the Gallian Regular Army, while Damon decides to transfer her to the Regular Army and exploit her Valkyria powers for his own glory. Welkins confronts Faldio over shooting of Alicia, with Faldio replying that he had no other choice or Gallia would have lost. Meanwhile, Selvaria fumes over her failure to protect Maximilian, while the Imperial Prince is determined to continue the invasion despite the loss at Naggiar. He still has a trump card in the form of a massive armored vehicle, the Marmotah. At the Gallian camp, Alicia escapes and tries to reunite with Squad 7 when Damon declares she will be promoted to Captain and be forcibly transfered. The members of Squad 7 fear Alicia and her newly awakend Valkyrur powers, but she inadvertently hears their conversation. In the midst of the confusion and misunderstanding that follows, Alicia accepts the view that she is now unwelcome. In tears, she decides to accept the transfer to the Regular Army, despite Welkin's pleas.
When Imperial forces attack the small border town of Bruhl, Welkin Gunther, son of late General Belgen Gunther, is forced to fight for his life alongside Town Watch captain Alicia Melchiott. Along with Welkin's adopted sister Isara, the three escape to Gallia's capitol and subsequently join the country's militia forces. As members of the newly-formed Squad 7, they must work to repel the invading Imperial forces and discover the true purpose of the invasion itself.
