In the Universal Century year 0079, the space colony known as Side 3 proclaims independence as the Principality of Zeon and declares war on the Earth Federation. One year later, they are locked in a fierce battle for the Thunderbolt Sector, an area of space scarred by the wreckage of destroyed colonies.

Newtype Levan Fu has a grand vision of a time when mankind is at peace and free from the cycle of endless war. To realize this vision, he must first plunge himself and all his followers into the cauldron of battle. As the Federation assault on the Nanyang Alliance's Taal volcano base begins, Daryl Lorenz and his squadron mates fight a rearguard action while the rest of the Alliance forces evacuate. On the other side, Federation ace Io Fleming leads the attack. The fate of humanity hangs in the balance as these two rival pilots prepare to cross swords once again.