Although most of the Federal Forces have been replaced by Titans, one taskforce still patrols, the SS Sandy Hook.  Equipped with GM Customs and led by ace veteran Callahan Fix and his Z Plus Transforming MS.

Callahan Fix's task force catches the Zion survivors during a raid on a local town.   Before the raid, an off duty Titans officer, Pantera Ace, manages to woo Cray Douglas, and trick him into joining the Titans.

The Daikunists decide to infiltrate a Titans base to try to get Cray Douglas back...  But the base is heavily defended, and only a stealthy approach on foot will succeed.

Inside the base, the infiltrators spy several new Titans Mobile Suits.  Although they fail to convince Cray to leave, they manage to steal one of the new Mobile Suits, a Garibaldi Beta.

The Titans make a power grab and demand Callahan Fix turn over his task force to Titans command, including this deadly Battleship.

Lizzy Phelps manages to meet with Callahan Fix and convince him not to join the Titans.  Fix's men escape just as the Titans make their move.

The Titans reveal their latest weapon, the PSYCHO GUNDAM, which destroys the Yukon submarine before its Cyber Newtype pilot has a meltdown.  The Zion forces have to abandon ship and are split up.

The Daikunists manage to sneak aboard a Federal Forces shuttle and escape into space.  But when the shuttle is attacked by space Pirates, they are saved- ironically, by the Titans, including Cray Douglas!

The Titans continue their genocidal war against resistant Spacenoids, injecting G3 poison gas into the space colonies suspected of sympathizing with the Zeon.   Witnessing the attack, Cray Douglas finally decides to leave the Titans, and convinces Pantera Ace to join him.  The Daikunists, joined by Lizzy Phelps, manage to stop them before thousands are killed.

Cray Douglas discovers the location of the Space Pirate base- a partially destroyed Space Colony.

Catching the pirates off guard, Cray manages to break inside the base, and steals the Pirate's latest custom Mobile Suit- the O.

The Daikunists, now equipped with new Mobile Suits, discover a new Titan Superweapon: a Colony Laser.  They must mount an attack on it before the Titans wipe out all Spacenoids!

Shinan Zahn has the same idea, and leads his forces against the Titans and their Colony Laser.

The Titans put up a ferocious defense with their most adanced Transforming Mobile Suits, but are overwhelmed.

Shinan Zahn, allied with fellow Zabist Haman Khan,  reveals his greatest weapon- the captured Psycho Gundam, piloted by one of the Zeon's own Newtypes, Rosa Gallo.

Shinan and Haman plan to capture the Colony Laser for themselves, and use it to wipe out all Earthnoids.  Myla Vo, in her Kshatrya, uses her Newtype powers to try to convince Rosa Gallo not to do it.

Rosa is finally convinced, and sacrifices herself by self-destructing the Psycho Gundam and destroying the Colony Laser!

With the Titans stopped, and the balance of power restored, the second war for the Universal Century comes to a close...