On January 1, 0080, the battle between Zeon and the Earth Federation rages on. Fleet Commander Delaz has been informed that Gihren Zabi has been killed by his sister. Three years later, Federal Forces Kou Uraki and Chuck Keith are engaged in training exercises near Australia's Torrington Base. Their target is a new experimental Powered GM piloted by Lt. Dick Allen.

The Albion flies over the Savannah of Eastern Africa as the seach continues for Gato and the GPO2A. All of the crew is on edge, and things only get worse when a battle alert is sounded. It turns out to not be an enemy attack, but instead is a fight in the hangar between Monsha and Mora. Mora does not like that Monsha is hitting on all her girls and grabbing their asses. Adel says he will make sure Monsha grabs her ass too, and Mora hits him

Unit 1 is finally fitted for space and Keith suggests to Kou that he take Nina out on a date before they depart, giving him a pair of movie passes. At Kelly's home, Cima's henchman Kult shows up with payment for the Val Varo, the mobile armor Kelly worked on, and reveals that Kelly will not be allowed to fight because he only has one arm. Kou goes to ask Nina out and she sees the tickets, but he chickens out and she gets mad and decides to go home. Kelly goes and takes off in the Val Varo and announces to the Albion that he wants to fight the Gundam. Kou launches to meet him out on the moon's surface and they realize for the first time that they truly were destined to fight one another. Nina hears the warning announcement and runs off to the scene of the battle where it is revealed that Kelly knows her as well. Kou defeats Kelly and urges him to escape, but Kelly points out that he didn't install an escape system. The Val Varo explodes, killing Kelly, as Kou and Nina embrace. The Albion then heads out to find the Delaz Fleet.