Prince Rudolf, the grandson of the Emperor of Guylos, is informed that his grandfather's condition is taken a turn for the worse, and that's bad since he was already sick and he's really old. Rudolf runs to talk to his grandfather through a transmission. The Emperor tells Rudolf that when he dies, Prozen will take care of him and he's now attacking the Republic so that they can conquer it it and Rudolf will have a peaceful land to rule. Rudolf says that he doesn't want that and all he wants is for the Emperor to get better, but then the old man passes away. Rudolf starts to cry for his grandfather. While all of this is taking place, Hermann prepares the Republican troops for battle as the "iceberg" comes closer to New Helic City. Van and Zeke don't want to fight in the war anymore. The iceberg reaches shore and opens and tons of Imperial Zoids come out of it. Prozen contacts the President telling her that he wants an unconditional surrender, but the President refuses. Prozen tells her that she has to surrender or the Republic will be destroyed. He gives her until noon to answer.

Irvine talks to some Republican soldiers and figures out that Krueger, Moonbay, and Fiona are still in Mt. Osa Base, which is being attacked by Karl's and Marcus's troops. Krueger plans to sacrifice himself and self-destruct the base and tells Moonbay and Fiona to get out. They have already set the explosives for him, but refuse to let him die like that. When he doesn't give in, Fiona knocks him out with a frying pan. Karl stops his troops from entering the base because he suspects a trap, but Marcus and his troops charge in. Meanwhile, Irvine tells Van where Moonbay and Fiona are. Moonbay is flying a Pteras with Fiona and Krueger as passengers and she tells Fiona to hit the button on the remote that will blow up the base. She set the explosives to that remote. Fiona doesn't want to, but then Krueger wakes up and presses the button for her, only to find that it didn't work. He's then knocked out by Fiona again. Meanwhile, the Republic and Imperial armies face off near New Helic City waiting for the President's decision.

Dr. D then shows up and tells Hermann that he has a plan. Mt. Osa Base is built inside the volcano, so if they can make the volcano erupt, then hopefully the base will explode and they can force the Imperial troops there to retreat. Then they can negotiate a cease-fire with Prozen. They can make the volcano erupt by launching missiles into it with Pteras units. Hermann is not sure about going in with only Pteras units, so Dr. D suggests that Van and Zeke go along. Van and Zeke say they will. Meanwhile, Krueger wakes up and comes up with the same plan as Dr. D when Fiona mentions the volcano. Moonbay tries to make it erupt with some missiles, but it doesn't work. The President is wondering what to do when she gets a call from Hermann, who tells her the plan. She agrees to it and he thanks her. Three Pteras units, with Dr. D in one of them, go with Van to erupt the volcano. Meanwhile, Raven shoots down Moonbay's Pteras and is about to attack her when Van and the others arrive. Raven and Van prepare to fight once again.

It's noon now and the Imperial army attacks and the Republican army fights back. Moonbay, Fiona, and Krueger hitch a ride with the other Pteras units. Van and Raven start fighting, but Raven dodges all of Van's attacks even though his Saber Fang is damaged. Missiles are launched into the volcano, and it starts to erupt! Inside Mt. Osa Base, all of the Zoids' command systems freeze and the Zoids start to retreat by themselves. Marcus's Iron Kong freezes too and Karl tells him to get out of there, but he refuses. He gets caught in lava and dies and Karl salutes him, then orders all of his troops to retreat. Van and Raven go in for close combat and Van puts up the Liger's shield. Raven starts to force his Saber Fang through the shield even though his Zoid is being torn apart in the process. Finally, Raven's Zoid falls apart, but Shadow takes Raven out of it before it's destroyed. Van's shocked from all of this and Raven vows to fight Van again.

Meanwhile, the President contacts Prozen and tells him that his troops are retreating from Mt. Osa Base and suggests a cease-fire. Prozen doesn't believe her, but then a soldier confirms him that it's true. Then, Prince Rudolf contacts all of the Republic and Empire and tells them that the Emperor has passed away, so now he leads the Empire. He says that he doesn't want the war to go on any longer and orders the Imperial army to retreat and wishes the best of luck to the President and the Republic. Prozen has no choice but to obey Rudolf. The Republic has won the war! Or maybe the Empire decided to lose it. Anyway, Van meets up with Fiona again and Moonbay wonders how much she should charge the President for all of this.

Quotes:

"Connect me with the Imperial army at once!" The President
"You have only two choices available to you, either you surrender or face total annihilation." -Prozen
"Hey cool! You're the best! Thanks mom!" -Hermann
"So nice to see you again, Van." -Raven
"How insane was that?" -Van Freiheit