Atsushi Sawasaki, a former member of Prime Minister Kururugi's cabinet, declares the revival of Japan as a sovereign nation. While speculation flies about the Black Knights' involvement, they actually have nothing to do with Sawasaki's declaration, nor do the Kyoto group have any knowledge about this development.
Aboard the Avalon, Lloyd informs Cecile that Suzaku has agreed to partake in their next mission. With Schneizel at the Tokyo settlement and a countermeasure to the Gefjun Disturber in development, Suzaku recalls his last meeting with Euphemia, when he tendered his resignation as her knight. He assured her his decision to resign had nothing to do with the incident on Shikine Island, but rather, that he had killed his father, and because the people still suffered, he did not deserve the honor of knighthood. The decision to give up knighthood also leaves Euphemia downtrodden.
In the oceans surrounding Kyushu, Cornelia finds herself at a disadvantage against the Chinese Federation due to stormy weather. Euphemia tries to find a way to assist Schneizel, but her efforts are brushed aside.
At Ashford, while the student council meet to discuss the school festival and Nina leaves for the museum to meet with Lloyd, Shirley is troubled: she had found the note she discarded before leaving for Narita, which revealed Lelouch was Zero and responsible for her father's death. She has no memory of writing the letter, but is still bothered by this...
Back aboard the Avalon, while the Lancelot is outfitted with its own float system, Cecile asks Suzaku why he gave up his knighthood. Suzaku explained that Euphemia still approved of him, and any dishonor on his part would cause her to loath herself. Meanwhile, at the museum, Euphemia wonders what she can do to help, even though she is only a figurehead and her attempts to help are rebuffed by her elder siblings.
On the Black Knights' sub, Zero announces that the Black Knights would not assist Sawasaki, as he is being controlled as a puppet for the Chinese Federation. He states his intention to make Tokyo an independent nation, to the surprise of his army.
Back at the museum, Nina, having learned that Princess Euphemia is present, rushes to meet her, but is detained by security. Euphemia, however, recognizes her from Lake Kawaguchi and has her released.
The Avalon makes its approach to Kyushu. Sawasaki launches missiles against it, but a new barrier system leaves the airship intact. Suzaku launches from the Avalon and, using it's new Float Unit, takes flight and charges for the Kyushu base where Sawasaki is stationed.
Back at the museum, Nina and Euphemia talk. When Euphemia states how she's no good compared to her sisters, Nina quickly rebukes her self-deprication, and reveals her own insecurities as she talks of how she looks up to the princess. Through their conversation, Euphemia realizes that Suzaku is also struggling with his own insecurities. Now knowing what she must do, Euphemia offers her thanks to her new friend.
Sawasaki makes contact with Suzaku, claiming that he is trying to destroy his father's dream of an independent Japan. The Lancelot is ambushed by Chinese Federation Knightmares. As his VARIS and Float Unit are wrecked and his energy levels deplete, Euphemia contacts Suzaku and commands him to love her, and in return, she would love him. The two talk of what they admire about each other and declare their love for one another. However, Suzaku's energy reserves are nearly run dry, and he is moments away from being killed.
Just as all hope for Suzaku seems lost, the Gawain appears, with Zero and C.C. at the helm. With the Gawain's Hadron Cannons perfected thanks to Rakshata's Gefjun Disturbers, Zero is able to make short work of the Chinese Knightmares. He then provides Suzaku with a reserve Energy Filler, and together, they blast their way through the Chinese Federation's military and force Sawasaki into surrender. At the same time, the Black Knights are poised to earn more support from the people thanks to the rumors that would spread of Zero working alongside Britannia for the greater good.
After the battle, Euphemia tells Suzaku her intention of working towards a world where she can enjoy the smiles of the people she loves. To this end, she offers to return Suzaku's knighthood, an offer Suzaku readily accepts.
