After Faldio accuses Selvaria, Karl and Jaeger of staging the kidnapping, they realize that the Atlantic Federation is behind the abduction. Welkin, Faldio and Ramal are forced to work together with the Imperial officers to rescue Alicia and Cordelia before they are moved into Atlantic Federation territory. Welkin and Isara in the Edelweiss team up with Faldio and Ramal and are successful in rescuing Alicia and Princess Cordelia from Federation agents. Irene, who is in hiding, realizes that the disappearance of Cordelia is the apparent work of Borg and Federation Ambassador Townsend. Cordelia, in a meeting with Faldio and Welkin, orders news of her abduction kept secret from the Gallian media since she wants to keep the affair from going public. Irene warns Alicia, Isara and Ramal of a deeper conspiracy at work.
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.
