Upon taking the throne, Lelouch proceeds to reform the Britannian Empire by abolishing the aristocracy and giving the Areas their independence. Public opinion of Emperor Lelouch skyrockets, and the Black Knights are left to ponder Lelouch's true intentions.
At the capital of Pendragon, Lelouch discusses with Suzaku the reformation of Britannia. Lelouch states that his intent is to conquer the world, for the sake of the "Zero Requiem". He is then informed of Knightmares on route to the capital: it is the Knights of the Round, rebelling against the Emperor and lead by the Knight of One, Bismark Waldstein. Suzaku engages them alone in the Lancelot Albion, killing two of the Knights effortlessly and disabling Gino. Bismark engages Suzaku, revealing that he has a Geass power of his own which allows him to predict Suzaku's moves. Suzaku, however, is able to use the Geass command to "Live" given to him by Lelouch to evade Bismark, rendering his own Geass useless, and defeating him.
The world watches as the battle unfolds and Suzaku emerges victorious. Immediately afterwards, Lelouch announces his intent for Britannia to become a member of the United Federation of Nations, to the shock of the Black Knights.
Lelouch arrives at Ashford Academy, the sight of the negotiations, and is escorted through the campus towards the gymnasium by Kallen. Kallen ponders Lelouch's motives, and what she means to him. She kisses him, but he acts as though they are complete strangers. She says her farewells to Lelouch, and as she walks away, he to her.
In the gymnasium, Lelouch requests the UFN's chairman, Kaguya, allow Britannia entrances into the UFN. Kaguya has barriers with monitors erected around Lelouch to counteract his Geass. The UFN's leaders explain to Lelouch that voting power is based on the population of member nations, and with over half of the world's population, Britannia would have an unfair amount of power over the other member nations. He is given the option of allowing the nations under Britannia's rule to secede, or to let Britannia's voting power be cut to 20%.
Lelouch asks Kaguya what is most important in a nation, to which she answers "Pride" in the nation's people. Lelouch accepts her answer, but states that he would answer differently: what is most important in a nation is the willingness to destroy.
With that, the Lancelot Albion stealthily launches and barges into the gymnasium, holding the UFN's members hostage as Britannia invades Japan. Lelouch demands the UFN take an immediate vote to determine whether Britannia could join the UFN.
As Lloyd and Cecile, both working for Lelouch, capture Nina, he and Suzaku leave for the homeland, only to learn that Pendragon has been destroyed, obliterated by a FLEIJA! While Lelouch was conducting his business with the UFN, Prince Schneizel had launched his secret weapon, the floating fortress known as "Damocles", and launched a FLEIJA at the imperial capital.
Schneizel contacts Lelouch aboard his personal shuttle. When Lelouch asks if Schneizel thinks himself better suited to rule, the elder brother declines, and instead states that there is another better suited to lead the empire...
Lelouch is then shown a shocking image: Nunnally vi Britannia, his sister, is alive! She is now aboard the Damocles, and declares Lelouch and Suzaku to be her mortal enemies!
