Terra arrives at the Castle of Dreams, and the first thing he notices is a young woman, sobbing. He learns that she wants to go to a ball at the palace, but her family has nearly ruined all of her chances. Sensing a strong light within her, he tries to comfort her, but her sorrow attracts the Unversed, forcing him to fight them off. Following this, Cinderella's Fairy Godmother arrives and gifts her a carriage and a gown for the ball, but warns her that the spell will fade at midnight. After Cinderella leaves, the Godmother explains to Terra that believing in one's dreams is work enough to deserve fulfilling them.
Terra follows Cinderella to the palace and escorts her to the ball while protecting her from the Unversed. There, she attracts the attention of Prince Charming, but her stepmother and stepsisters, the Tremaines, sense something familiar about her and feel jealous of her. This results in an Unversed, the Symphony Master, disrupting the ball, which Terra soundly defeats.
Following the Unversed's defeat, Terra learns from the Grand Duke that the Unversed are being commanded by a boy in a mask. The clock soon strikes midnight, and Cinderella is forced to leave without telling Prince Charming her name, but loses a glass slipper in the process. As Terra pursues her, he reunites with Aqua, and explains to her that Xehanort is looking for seven princesses of light before telling her of Cinderella and taking his leave.