In the Kardia Cathedral, Laxus is notified of Freed's defeat and Mira's removal from contention. That leaves the six Gajeel, Satsuki, Natsu, Aira, Mystogan, and Erza, against the last remaining enemy: Laxus.
The Raijin Tribe is defeated, and so Natsu, Erza, Aira, Gajeel, Satsuki, and even Mystogan go after the source of the Battle of Fairy Tail: Laxus. Battles begin between Laxus and three of the five Mages who are after him, with Mystogan and Erza leaving, with the latter going off to stop the Thunder Palace, leaving Natsu alone to face Laxus.
Gray uses Warren as a telephone to contact all Fairy Tail Mages along with Erza so they could all communicate. All Fairy Tail Mages scattered around Magnolia are called to look at the sky.
They argue and first, but Lucy interrupts them with an inspiring speech. Lucy's speech inspires everyone and they all stop fighting for the time being and prepare to destroy the lacrima. They manage to destroy all of them but they suffer the consequences of the Organic Link Magic. They are glad to have been able to render the Thunder Palace out of order.
The final battle against Laxus rages on.
Levy is running to the Cathedral where Laxus is at to inform him that his grandfather is in critical condition.
Laxus witnesses this and is furious. All his plans have failed, and Natsu lectures him on the fact that he cannot be Master of a guild that he has never tried to be part of. This makes him snap, and he yells that he will become Master by force. Around him, an aura of electricity has gathered, making it impossible for Natsu to attack. Laxus quickly subdues him and attacks with a powerful spell, Raging Bolt. The spell strikes the ground where the Dragon Slayer is, revealing, after the clearing of the smoke, nothing to be in his place.
Laxus chuckles to himself when he sees nothing but smoke where Natsu was. "Natsu! Who was the strongest in the guild again?!" He laughs out loud. "Oh, I'm sorry. You can't answer because you've been turned to dust!"
"Weren't you his ally?!" A voice asked. Laxus looks at the Water Dragon Slayer who has Natsu in his hand, while hanging off the railing. "Man, I always gotta save his ass... Although gettin' rid of him is my role."
Natsu looks at Aira, relieved that his friend/rival saved him. "Aira..."
"Another prey shows up." Laxus laughed. Aira throws Natsu on the ground. "Disappear, disappear! Anyone who stands in my way should just disappear!"
"I'll handle Laxus! Stay back." Natsu said.
"That ain't gonna happen. His monstrous strength is the real deal. He's got Gramps' blood in him." Aira stated. "I don't like it, but we've got no choice. We'll fight him together!"
Natsu screams when he hears this, jolting up to argue. "You're joking, right?! I'm gonna defeat Laxus! We're already in the same team back at the guild, isn't that enough?!"
"I could say the same, but take a look. Is that the Laxus we know?" Aira asks Natsu while they look at Laxus laughing out loud with an evil face.
"Disappear! Disappear!" Laxus yelled as lightning surrounds him. Natsu finally realizes what Aira means.
"That's an enemy of the guild. We have to stop him here to protect the guild. The rest of them are down for the count after the counterattack from the Thunder Palace." Aira said. "Do you realize what will happen if we don't stop him here?!"
"All right! Let's fly in the sky like dragons." Natsu agrees to fight with Aira.
"But with all this annoying lightning, we can't fly in the sky." Aira smirks at Natsu.
"After this fight, you owe me another one!" Natsu positions himself in a fighting stance.
"We'll continue our fight from the other day back at the guild!" Aira positions himself as well.
"Let's do it!" The Dragon Slayers charge at Laxus, attempting to strike him, but Laxus evades their attacks. Laxus blows Natsu away with his lightning. Natsu crashes into Aira, but he stops him from doing so.
"Use your breath!" Aira ordered.
"Fire Dragon's Roar!" Natsu releases his fire.
"Water Dragon's Roar!" Aira combines his Magic with Natsu's breath attack. Laxus quickly evades it. Aira looks up and sees Laxus. "Water Dragon's Arrows!" A dark blue Magic Circle appears as Aira shoots water arrows at Laxus. Laxus shoots balls of lightning at Aira, who is eventually hit by the attack.
"Fire Dragon's Brillant Flame!" Natsu appears behind Laxus, landing a hit.
"Water Dragon's Gale Force!" Aira shoots out a blast of water from his right hand at Laxus.
"Fire Dragon's..."
"Water Dragon's..."
"...Roar!" Natsu and Aira attack, once again, landing a direct hit at Laxus. This creates a large explosion and smoke everywhere.
"That's the power of you working together?!" Laxus rises from the smoke, unharmed. "I'm shocked you can call yourselves Dragon Slayers."
"Didn't we damage him at all?!" Natsu's shocked to see Laxus unharmed.
"Impossible! No matter how strong he is, after being hit with all that Dragon Slaying magic... I can't believe it!" Aira wonders how Laxus is still standing.
Laxus stares at them with a smug grin. "Well, it's simple really. I hate the old man's lectures, so I kept it a secret. But I'll show you a special." His front teeth turn into canines as he bulks up, tearing his shirt. Scales appear on his forearms as his Magic Power increases.
"N-No way..." Natsu watches Laxus' Magic increase.
"You've got to be kidding me." Aira finally knows what Laxus' real Magic is.
Laxus pulls his head back. "Lightning Dragon's..."
"You're also a Dragon Slayer?!" Natsu stands back.
"...Roar!" Laxus fires lightning at the two, leaving them immobilized. "Oh? Still alive? Just stay down already."
"My body..." Natsu struggles to get up.
"I'm paralyzed..." Aira struggled.
"You two, Erza, Mystogan, the old man, the trash in the guild, all the people in Magnolia... I'll make them all disappear!" Laxus screams in anger, releasing a large amount of Magic Power.
"What's with this crazy magical power?" Aira feels like he has felt this kind of Magic before.
"This power... It's Gramps'..." Natsu recognizes the Magic Power.
"It targets everything the caster sees as an enemy... The Master's Ultimate Spell of Judgement! Fairy Law!" Aira exclaimed.
Laxus positions his hand where he is about to cast the spell. "That's right! Fairy Law!"
"The spell that destroyed Phantom's Master..." Aira said.
"Stop it, Laxus!" Natsu screamed. Laxus ignores Natsu, continuing to cast the spell. "Laxus!"
"Stop it, Laxus!" Levy appears at the doorway of the Kardia Cathedral.
Natsu looks at the entrance. "Levy!"
"You idiot! Why are you here?!" Aira asked.
"Laxus! The Master is..." Levy calls out for him, but Laxus ignores her. "The Master... Your grandfather is... near death!" They're all shocked to hear this devastating news. Laxus hears Levy's news as his pupils start to appear again. "So please, stop this! Come see him!"
"Death? Gramps?" Natsu muttered. "He's gonna die?"
"Laxus!" Levy cried out.
"Perfect timing! Now my chance of becoming master just went back up!" Laxus grinned, not caring one bit about his grandfather.
"That bastard..." Aira snarled.
Natsu is still speechless about the news.
Laxus evilly laughs out loud. "Disappear, Fairy Tail! I'll build it up again from scratch! I won't lose to anyone! Everyone will cower in fear before my ultimate guild!"
Levy falls to her knees. "That's..."
"Why, you...! How could you?!" Natsu screamed.
"Fairy Law is invoked!" Laxus finally releases Fairy Law. The bright magic spreads throughout the cathedral. A Magic Circle appears on the top of the cathedral. It soon spreads throughout Magnolia. "I've surpassed the old man..."
After Fairy Law was casted and the smoke disappears, Laxus is surprised to see Natsu, Aira, and Levy unharmed, coughing from the smoke. "B-But... Why?! Why wasn't any of you killed?!"
"You okay?" Aira asks Levy.
"I'm fine. How about Natsu?" Levy nods in agreement.
"Seems okay to me." Aira looks at Natsu who is gritting his teeth.
"After using all that magical power..." Laxus is unable to comprehend what just happened.
"All the members of the guild and the people of the city are safe as well." Freed appears at the doorway, injured and his clothes torn apart. "Not a single person was killed."
"That shouldn't be! My Fairy Law was perfect!" Laxus argued.
"It was your heart, Laxus!" Freed said. "You inherited more than just the master's strength and magical powers. You also got a heart that feels for your friends! Fairy Law only affects those the caster sees as his enemy. You understand what this means, right Laxus?"
"The feelings he has deep down are revealed through his magic." Levy stated.
"Magic never lies, Laxus." Freed smiles at Laxus. "This is what you really feel."
"No! Everyone who gets in my way is my enemy! My enemy!" Laxus argued, denying the truth.
"Just quit this already, Laxus. Go to the Master." Freed said.
Laxus gets enraged. "Who gives a crap about that old man?! I am me! Not just some old man's "grandson!" I'm Laxus!" He releases his lightning everywhere.
Natsu stands up. "Everybody knows that. Don't get so puffed up, you jerk! Does being Gramps' grandson make you so different from the rest of us?!" He engulfs himself in flames. "Don't you know blood types don't matter? Because everyone in the guild is supposed to be considered family!" Natsu then crashed back onto the ground.
"And what the hell do you know?!" Laxus' pupils disappear.
"It doesn't matter if he knows or doesn't know. Aren't we guild mates anyway?! None of us know! That's why we help each other out!" Aira pulls his fist back. "Laxus!"
"Shut up, Aira!" Laxus surrounds himself in lightning. He crashes his fist into Aira.
Charging at each other, the Dragon Slayers burst through the roof of the cathedral, taking their battle to the skies.
"Disappear off the face of the earth!" Laxus punches Aira.
"I'll be the one to stop you!" Aira kicks him back. "Even if the flame head can't. Even if the guild does, it'll never be yours! Because it's our home to return to!" Laxus punches Aira, sending him reeling backwards.
"Can't you even die right?!" Laxus screamed while he picks up Aira and kicks him. "Do you honestly think you can beat me?!"
Natsu, Freed, and Levy watch the fight from the ground.
"The guild isn't yours. Just think about it, Laxus." Aira weakly said.
"Shut up! Lightning Dragon's Breakdown Fist!" Laxus sends lightning at Aira, creating a large explosion on the top of the cathedral. "It's 100 years too early for you to be preaching to me, pipsqueak." Aira's persistence allows him to rise once more.
"He can still stand?" Freed asked.
"That's enough, Aira..." Levy pleads for Aira to stop as he could die from his injuries.
"You damned brat! I'll make sure there's not even a trace left!" Laxus reaches his boiling point, accumulating lightning in his hand.
"Stop it, Laxus! If you use that magic while Aira is like this..." Freed protests the spell that Laxus is about to cast.
Laxus ignores Freed, laughing out loud. "Lightning Dragon's Heavenward Halberd!" He lets loose the spell in Aira's direction. Unable to move, Aira bows down in preparation for his defeat.
"Don't!" Freed screamed while Levy cries, looking away from Aira.
"Aira!" Natsu screamed, helpless to do anything due to his injuries.
The spell completely misses Aira, turning right instead of straight. Right on time, Satsuki arrives and utilizes her rocks to redirect the spell. "Satsuki!" Levy cried out, relief to see Satsuki on time.
"Rocks... Did she use herself as a lightning rod?" Freed suspected.
"Go, Tsunami!" Satsuki shouted. Aira gets back up, recharging his Magic Power as his water starts to steam.
"How dare you!" Laxus' didn't expect Satsuki to come and save Aira.
"Water Dragon's..."
"Damn you!" Laxus screamed.
"...Wave Fist! Claw! Wing Attack! Talon! Crushing Fang!" Aira does multiple attacks, combining them to hit Laxus.
"That magic will shatter a dragon's scales, crush its innards, and cut down it's very soul." Levy stated.
"True dragon-killing attacks..." Freed said.
"That's how Dragon Slayers are..." Natsu commented, smiling at Aira who is about to finish off Laxus.
Aira wraps his hands in water and whirls them around. "Dragon Slayer's Secret Art: Deadly Waves!" Directly at Laxus, barraging him with a huge wave of water and sending him flying away. Laxus flies back on the ground, defeated.
"Laxus... lost." Freed muttered.
"That's Aira for you..." Natsu stated, smiling.
Somewhere else, Igneel and Kaito are talking, discussing Aira's actions.
"You sure have trained that boy well, Kaito." Igneel said.
"I see he hasn't changed that's for sure..." Kaito replied, chuckling.
FANTASIA
Porlyusica is returning home after having basically revived Master Makarov. She hears the citzens of Magnolia talk about the recent events, and scoffs at the idea of Laxus being the Guild Master.
"Thanks to Porlyusica, it seems his life has been saved for now. Worry not. The Master is safe." Erza gives the good news to the guild as they cheer on.
"Thank goodness! I didn't know what was going to happen for a little while there." Lucy sighs of relief.
"The old man isn't gonna kick the bucket so easily!" Gray said.
"But the Master is quite old. Stressing his heart more will only make his health worse. Don't forget that, everyone." Erza stated.
"Aye, sir!" The entire guild agrees with her.
"But are we really doing the Fantasia under these conditions?" Lucy asked.
"It's what the Master wants. It's precisely at times like this we should do it." Mira replied.
"Juvia is also looking forward to seeing the Fantasia!" Juvia is filled with excitement.
Cana slides next to Juvia. "You'll be participating."
"There you have it!" Macao and Wakaba come in the picture.
"But... Juvia just joined..." Juvia stands in front of the wall, twirling her finger against it.
"Is she troubled or happy about it?" Wakaba asked.
"Which one is it?" Macao added.
"She's so cute..." Cana drinks her booze.
"Well, we do have a lot of injured people." Happy stated. "The rule is: anyone who can still move has to participate."
"Then I guess I'll participate too!" Lucy exclaimed.
"Are you happy about it or not?" Gray asked. "Looks like those guys can't participate, though." He points to Natsu and Aira wrapped in bandages all around their bodies.
"No kidding." Lucy said.
"I don't wanna hear that from you." Aira scoffed. Natsu mumbles something under the bandages covering his mouth.
"I have no idea what you're saying." Lucy commented.
"I doubt it's anything important." Happy added.
"Not a chance. No way you can participate, trash." Aira said. Natsu gets irritated and mumbles something at him. Surprisingly, Aira can understand him. "What does that have to do with it?! Are you some demon?!"
"I wonder how he can understand him?" Lucy asked.
"I seriously doubt it's anything important." Happy repeated.
"Sometimes your cold-hearted feelings scare me!" Lucy said as Mira giggles at them.
"But with this, we've fixed one of the problems in the guild." Erza softly smiles to herself.
Laxus enters the guild, surprising everybody. They all give him dirty looks, glaring at him for what he has done to everybody. "Where's the old man?"
"No matter how much you hang your head, you think we'll let you see the Master?!" Droy argues as everybody else agrees.
"Will you cease this?! He's inside the infirmary." Erza replied. Laxus walks past Erza, heading to the Master.
Natsu blocks the way, mumbling at Laxus. He shoots a glare at Laxus as he points a finger at him, saying stuff that nobody can understand.
"Some interpretation, if you please?" Lucy asked.
"This time was two against one, so I ain't satisfied. Aira interrutped and I ain't going to lose next time. I'll fight you anytime, Laxus! He said." Aira translated.
"But I thought you won?" Lucy asked.
"I wouldn't call that winning either." Aira replied. "I believe I just got lucky."
Laxus doesn't pay much attention to Natsu, walking past him. Natsu gets irritated, mumbling something under the bandages. As Laxus leaves, he waves at him, and everyone is surprised at this.
"Okay, it's time for everyone to get ready for the Fantasia!" Erza exclaimed.
Laxus and Master Makarov meet. Master Makarov lectures him on the true meaning of a Guild and scolds him for his actions. Master Makarov also adds that he never wanted Laxus to be someone strong or looked up to. He just wanted him to be happy and healthy. Laxus, guilty of the crimes of endangering his guildmates, is excommunicated from the Guild. Laxus understands and leaves, but not before telling a broken up and sobbing Master Makarov to take care of himself.
He later informs the Raijin Tribe of this. They offer to leave the Guild with him but in the end are willed to stay by Laxus.
Elsewhere, Ultear is talking to someone whom she identifies as Master Hades. They talk about Jellal's manipulation, and Master Hades states that because of Ultear, they achieved in getting one of the keys to a seal. Ultear congratulates Master Hades and then Jellal is shown, deep in the seas, unconscious.
The Fantasia Parade begins. Colorful fireworks light up the dark sky, everybody on the sidelines cheer in excitement as they watch the parade.
Cana, Wakaba, and Macao use their magic to create an arrow going through a magical heart, showing love.
Alzack, Max, Jet, and Droy are waving around the watching public. Jet and Droy are wearing a caterpillar and pumpkin costume while Max and Alzack wear their usual outfits.
Lucy, Levy, and Bisca are wearing tank tops with ribbons, miniskirts, gloves, and thigh length stockings. Each of them carried a flag bearing the name of the guild.
Elfman uses his Beast Soul: Full-Body Take Over. Mira participated with her float designed as a tower with a giant pink rose on top standing behind Elfman. In the middle of the parade, she emerged from the rose and quickly transformed into a giant gecko.
Gray and Juvia act as King and Queen of an ice castle created by Gray's Ice-Make with Juvia's Water Magic moving the surrounding water. Aira stands on top of the castle as he uses his Water Dragon Slayer Magic to create the Fairy Tail emblem.
Erza uses her requip, producing multiple swords to dance around her.
Natsu and Happy manned this float with Natsu using his Fire Dragon Slayer Magic words while Happy dances around him. The two are surrounded by torches being pulled by some creatures.
Nab, Reedus, Vijeeter, Warren, and Laki participated in the parade. The guys standing on top of their rock with Laki riding a wooden horse around them.
"Master." Gajeel and Satsuki finally appear, but on the sideline. Satsuki having fewer bandages than Natsu and Aira.
"You two are not gonna join in?" Master Makarov asked.
"Ain't my style." Gajeel replied.
"Oh yeah, Mr. Shooby Doo Bop?" Master Makarov teased as Gajeel's face puffed while Satsuki chuckled.
"Master, here." Gajeel hands him a piece of paper. "Master Ivan, your son. We found out where he is."
Master Makarov takes the paper, putting it in his back pocket. "Sorry about giving you two such a dangerous job."
"Eh, don't worry about it. No screw ups here. He has no idea we're double agents." Gajeel grins at the Master.
"It was easy." Satsuki added.
"You two did good." Master Makarov appreciates the help from Gajeel and Satsuki. "I can't let him do as he pleases."
"Master, are you ready?" A guild member asked.
Master Makarov puts his hat with cat ears on. "Well, I'm off!" The crowd gets more excited when they see the Master. He wears a goofy outfit consisting of a long-sleeved shirt, gloves, pants, pointy shoes, and a hat with cat ears. Master Makarov stood on a raised intricately designed platform with a status of an angel behind him.
Laxus is also watching the parade, and moments after Master Makarov enters the scene, Laxus is reminded of his first Fantasia Parade he watched when he made up a sign for Master Makarov to know that even if he wasn't seeing him, he was looking for him.
As Laxus is about to head off, he notices something that catches his attention quickly. He is amazed and the whole guild is using that sign in the current parade. "Gramps..." Laxus cries tears of joy.
"Even if I can't see you... Even if we are separated far apart... I'll always be watching you. I'll watch over you forever."
"Yeah... Thank you." Laxus leaves ashamed and touched, understanding what a fool he was.
"There's way more to go! I'm fired up!" Natsu exclaimed, using more of his Fire Magic. "We're Fairy Tail wizards!"
"I'm still just a rookie... But I've got to work hard and become a wizard that won't lose to anyone! Fairy Tail is the best!" Lucy smiles wide.
"Lucy, they say smiling weird like that will give you wrinkles." Happy teased.
Lucy panics a bit, hoping that her face won't get ruined. "Where?! Where?!"
"Just theoretically. So touchy, you are." Happy commented.
"I don't wanna hear that from you!" Lucy yelled. "And wait, we finally had a nice moment there... And this is how they end it?!"
Fireworks light up the dark sky as the crowd cheers for Fairy Tail.