Shortly after his visit to Destiny Islands, Terra notices a bright light heading in another direction. Just then, Master Xehanort speaks, telling Terra to hurry.
Back in the Badlands, Terra returns to catch Xehanort waiting for him. Xehanort explains that Ventus has just discovered the truth about his origins, and is returning to the Land of Departure to ask Eraqus for answers. Fearing for Ven's safety, Xehanort orders Terra to return to the Land of Departure and save Ven.
Terra arrives at the Land of Departure, only to catch Eraqus seemingly about to kill Ven. Eraqus prepares to fire a light spell to kill Ven, but Terra leaps into action, defending Ven from the blast. Eraqus is shocked at Terra defending Ven, but Terra refuses to let his master harm Ven. Believing Terra to have fallen to darkness, Eraqus prepares to finish both of them off. However, Terra rises again and sends Ven into a portal before facing Eraqus in combat.
After a lengthy battle, Terra defeats Eraqus, but very nearly pushes him at the brink of death. Eraqus, in his last moments, expresses remorse at raising his Keyblade at Ven and Terra, and admits that he himself has darkness in his heart. But Xehanort slays Eraqus, and the old master falls in Terra's arms as his Keyblade collapses.
Though Terra is shocked at Xehanort's betrayal, Xehanort congratulates Terra at helping him get closer to his goal. Xehanort threatens Terra to visit the Keyblade Graveyard, where he will slay Ven and Aqua, before obliterating the Land of Departure. As the land falls to darkness, Terra leaves, promising to protect his friends...