On the day of the ceremony marking the transition from the A.D. to the Universal Century calendar, the space station Laplace is destroyed by a terrorist attack.

Evading Marida, who has come to take Audrey back to the Garencieres, Banagher finally manages to get Audrey to the mansion in Magallanica, where she hopes to meet with Cardeas, the current head of the Vist Foundation.

The negotiations between Cardeas and Zinnerman break down as a mobile suit battle begins inside the colony, claiming the lives of Banagher's classmates.

After repulsing the Kshatriya, Banagher loses consciousness; along with the Unicorn Gundam, he is retrieved by the Earth Federation Forces warship Nahel Argama.

Daguza has taken Mineva, or Audrey, hostage but Frontal rejects his demand for a ceasefire and declares he will sink the Nahel Argama; in order to save Audrey, Banagher sorties in the Unicorn Gundam.

Removing his mask and revealing his face, Frontal requests the cooperation of Banagher, who can activate the Unicorn Gundam; when Banagher refuses, Angelo berates him for killing one of his subordinates.