In a shaft of light, Hitomi and the prince Van tranports to the world of Gaea, where Earth is known only as the "Mystic Moon" in the nightly expanse. Van returns to the capital of his country Fanelia to be coronated after obtaining the Energist crystal from the dragon. During the coronation rite, the Zaibach empire launches an invasion with Guymelef Alseides mecha, and Van must retrieve at his mentor Balgus's bidding Escaflowne, the legendary god of protection of Fanelia.

Hitomi and Van find themselves separated and lost in the neighboring country of Asturia, where a handsome knight save Hitomi from a thief and apparent lecher. Allen's haunting resemblance to Amano does little to alleviate Hitomi's confusion, specially after Van and Allen challenge each other to a duel not once, but twice...

The pivotal battle between Zaibach and the allied forces continues. Even after the Basram army employs the "doomsday weapon" in the form of a devastating Energist bomb, the fighting goes unabated. Folken decides the only way to end the war is confront Dornkirk personally and end his vision of the Sphere of Absolute Fortune.

At long last, Dornkirk's vision of reviving the power of Atlantis seems realized as the Sphere of Absolute Fortune's effects spread across the battlefield and the world of Gaea. However, the war does not end as the Destiny-Altering Device only turns the combatants' bellicose thoughts into reality. Gaea's fate in the end lies in a girl from the Mystic Moon and a white-winged dragon.