When Natsu irritably asks Erza Scarlet what she's doing and that he'll be handling Laxus during their battle, Erza looks at Natsu and smiles. She asks him if she can trust him with it. Natsu gets confused and then suddenly Erza runs out. Laxus and Natsu realize she's going to stop the Thunder Palace. Laxus laughs and tells her that just destroying one crystal could cost her her life and that there are three hundred of them plus she's out of time. Erza declares that she'll destroy them all at once. Laxus tells her that it's impossible and that even if she does somehow manage it, she'll die for sure. Erza replies that the town will be safe anyway. As she leaves, she yells that Natsu should make sure he stops Laxus. Natsu asks if he cant trust her too, not whether it's possible to stop the Thunder Palace or not, but if she can come out of it alive. She smiles and mutters that he saved her life and she has no intention of wasting it.
Laxus attempts to go after Erza but Natsu blocks him with Fire Dragon's Roar. Natsu attacks him once more with Fire Dragon's Brilliant Flame and Laxus negates this with his lightning. Laxus tells Natsu that he must know the pitiful state that the guild is in. He starts gathering lightning in his hands that fly everywhere as he states he'll be the one to change it, that's why he has to become the Master. Natsu dodges the lightning bolts but gets hit with the last one, sending him to a pillar. When the runes on the wall state that there's only a minute and a half left until the Thunder Palace activates, he gets irritated and asks what Makarov is playing at. Natsu tells him to not get so worked up and that it's not like anything's going to happen; he's anxious because he wants to stop it himself but then he shouldn't worry because Erza will handle it. Natsu starts charging towards Laxus, yelling that it's not that easy to keep up an act. Laxus yells back that he shouldn't get so damn cocky and charges toward Natsu. Natsu manages to kick him in the face and tells him that nothing's going to happen. Laxus replies that he should shut up.Later, the runes state that the Thunder Palace is out of order and it shows the number of lacrima destroyed by each member that participated. This makes Natsu glad and he asks Laxus if he really thinks that the guild needs changing; they're all part of the same group and a guy like Laxus who doesn't try to be part of the group won't understand. Laxus, enraged, yells that he'll become master through force and lightning comes out of his eyes and mouth. Natsu tells him to give up already because Fairy Tail will never be his. Laxus replies that it will belong to him and that he never should have thought of bargaining anyway because he should have relied on his power from the very beginning; the ultimate power that is the true core of his identity. Natsu charges forward and cries that he'll crush that power so that Laxus will finally give up. He attacks with Fire Dragon's Iron Fist but Laxus is unaffected. He laughs and mutters that Natsu will be the first. Laxus yells that Fairy Tail should come and try him and he'll take everything thrown at him. With his Magic, he electrocutes Natsu and sends him flying. Laxus tackles Natsu and knees his face. He quickly follows up with a few punches and kicks while Natsu is unable to retaliate. Laxus proceeds to zap him with very powerful lightning. Natsu notes that he really is powerful. He is unable to get up. Laxus starts gathering a massive amount of lightning and begins to chant. He sends Raging Bolt coming toward the immobile Natsu. It hits and the ground crumbles. Once the smoke clears, only a hole is left and no Natsu.
Laxus asks Natsu who the strongest man in the guild is, then he laughs and says that he can't answer anymore now that he's blown to bits. Suddenly, another Mage comes in the cathedral and tells Laxus that there must be something wrong with him because he and Natsu are comrades yet he's laughing about killing him. It is Gajeel and he's carrying Natsu using one of his hands. He states that taking out Laxus is his job. Gajeel drops Natsu on the ground while Laxus laughs about having a new prey. He yells that all those who stand before him will be reduced to nothing. Natsu struggles to get up and tells Gajeel that he'll handle Laxus and he should stay back. Gajeel replies that he has a personal grudge to settle with Laxus, however, he has the strength of a monster because he is, after all, Makarov's own flesh and blood. Even though they might not like it, they don't have a choice but to form an alliance. This surprises Natsu at first and he refuses without reluctance. Gajeel tells him to look at Laxus and asks if that's still the Laxus he knew. Laxus is now an enemy of the guild and so they have to stop him right away to protect the guild. Gajeel adds that thanks to the feedback of the Thunder Palace, everyone else is out of commission and so he asks Natsu what he thinks will happen if they don't stop Laxus now. Natsu incredulously asks him if he's really protecting the guild and Gajeel irritably replies that destroying it or protecting it is his choice. He smiles and asks Gajeel what about the "There isn't enough room for two Dragons in the sky" statement he used to say. Gajeel replies that maybe there isn't, but with all the damn thunder around, the sky isn't fit for flying. Their one-time alliance is formed, with only one objective: Defeat Laxus. Both Dragon Slayers charge toward Laxus and throw their punches but Laxus evades them. He blows Natsu away with his lightning. Gajeel orders him to use his breath attack and so Natsu makes a comeback with Fire Dragon's Roar in combo with Gajeel's Iron Dragon's Club that Laxus also evades. Gajeel follows up with Iron Dragon's Sword using his foot. Laxus also dodges that attack and casts balls of Lightning toward Gajeel who gets hit. While Laxus is suspended mid-air, Natsu appears behind him and uses Fire Dragon's Brilliant Flame. It makes a direct hit and Laxus falls down while Gajeel uses Iron Dragon's Lance: Demon Logs. In perfect sync, both of them attack with Iron Dragon's Roar and Fire Dragon's Roar, managing another direct hit. However, Laxus is unharmed even after all those attacks as he rises in the midst of the smoke and asks them if that's all they can do. Both of them are surprised by Laxus' endurance of their Dragon Slayer Magic. Laxus, with a smile, tells them that Makarov told him to shut up about a little detail but he'll show them just how special he is. Laxus suddenly bulks up to a slightly larger version of himself, tearing his shirt. He prepares a breath attack, just like the one Natsu and Gajeel did. The Dragon Slayers are stunned as they get hit by Lightning Dragon's Roar. The two are immobilized on the ground. Laxus exclaims that he will exterminate everyone: the two of them, Erza, Mystogan, Makarov and all of those in Magnolia Town and Fairy Tail. He starts emanating a huge amount of familiar power, Fairy Law.
Natsu and Gajeel crawl on the ground and try to stop Laxus from unleashing the terrible trump card that can eliminate everyone the caster views as an enemy. All of a sudden, Levy McGarden appears at the cathedral doorway, calling Laxus. With tears in her eyes, she yells that Makarov is at death's door. Laxus' eyes widen for a while. Levy cries out once more, saying that he should stop this and go see Makarov. Laxus looks up and states that that's just great because his chances of becoming Master has went up. He releases Fairy Law and yells for Fairy Tail to die. In the midst of this, Laxus declares that he'll build it all up from scratch, a guild that can never lose. Bright light shines all throughout the town. When the smoke clears, Laxus announces that he has surpassed Makarov. However he is shocked to see that Gajeel, Natsu and Levy are all still alive. He starts raging, asking how anyone can survive a spell of that magnitude. Freed Justine of the Thunder God Tribe appears at the doorway, stating that no one has been harmed and that everyone is still alive. Laxus tells him that that's impossible because he cast Fairy Law perfectly. Freed tells him that it's his "heart"; his strength and his Magical Power aren't the only things he inherited from the Master, he also inherited a heart that cares for his comrades. Freed adds that that spell only affects those the caster recognizes as a foe, meaning that Laxus does not truly see everyone as his enemy. He cannot lie to his Magic. Laxus does not believe this and says that anyone who opposes him is an enemy. Freed only tells him to give up already and go to the Master. Enraged, Laxus yells that he is himself, he is Laxus. Natsu stands up and says that Laxus shouldn't get all big-headed on them. He cries that Laxus shouldn't get hung over by some stupid blood relation and that Fairy Tail is all the family they need. Laxus asks him how could he understand and Natsu says that maybe he doesn't understand but he's still a comrade. Natsu charges forward, fists aflame, and shouts that they reach out to each other to get past things like that. Laxus, fists charged, shouts once more for him to shut up.
They charge at each other. Both burst through the roof of the cathedral and take their battle to the sky. Laxus shouts for him to just disappear already and Natsu shoots back that he's going to stop him and he won't let Laxus have the guild even if he dies because the guild is their home. It is Laxus' fist that hits first and blows Natsu away. He regains his balance and charges once more. Annoyed, Laxus asks him why won't he just die and throws more punches and kicks. Natsu, although bleeding already, still struggles to get up and tells Laxus that the guild doesn't belong to him and he should just think about it. Laxus casts Lightning Dragon's Breakdown Fist and then steps on Natsu, yells that he's a hundred years too early to be lecturing him and kicks him across the floor. Still, persistent Natsu gets up. Levy pleads for Natsu to stop because he could kill himself. Natsu does not listen. Laxus, getting more pissed by the second, starts to accumulate lightning in his hands. Freed attempts to convince him to stop his spell but Laxus proceeds anyway with his Lightning Dragon's Heavenward Halberd, throwing a large spear of lightning towards Natsu. The second before it hits Natsu, it redirects towards Gajeel who used his steel pillar arms as a lightning rod to save Natsu. The weakened Gajeel signals for Natsu to go and so Natsu charges towards Laxus once more with Fire Dragon's Iron Fist, this time managing to hit him. He quickly follows up with Fire Dragon's Claw, Fire Dragon's Wing Attack, Fire Dragon's Sword Horn and Fire Dragon's Crushing Fang in succession. Levy and Freed recognize Natsu's Dragon Slayer Magic that smashes a Dragon's scales, crushes its entrails and even its very soul. Natsu fires one last spell, Crimson Lotus: Exploding Flame Blade, at Laxus before blowing him away and defeating him. As Laxus lies on the ground, Natsu roars.
AftermathEditWith the internal fighting over in Fairy Tail, the town is back with celebrating the Harvest Festival like nothing happened. Perhaps the scars earned in the process have only strengthened their bonds with one another. Merriment is all around Magnolia once more. The townspeople discuss the matters of the Fantasia Parade that has been postponed until a day later because of the ruckus caused. They also discuss the possibilities of the next Master because they heard that Makarov was in bad shape. However, it turns out that Makarov is fine and isn't in any immediate danger thanks to Porlyusica's help. The Fairy Tail Mages discuss how they will do the Fantasia. Because of many being injured, all of those who can still move are made use of by participating in the parade, surprising Juvia Lockser and Lucy Heartfilia. Gray Fullbuster points them to the mummified versions of Gajeel and Natsu, all wrapped up in bandages to cover up their injuries from the battle with Laxus. Natsu attempts to speak even underneath all those bandages but no one can understand what he's saying except for Gajeel, weirding Lucy out. Like with the rest of Magnolia, Fairy Tail's spirits are back up again.
The atmosphere tenses when Laxus steps in the guild. Most of the members are more concerned of fighting him and throwing him out but Erza tells them off and points Laxus to where Makarov is. Mummy-Natsu starts unintelligibly shouting and blocks Laxus. He points his finger at Laxus and speaks gibberish, so Gajeel, who can apparently still understand him, had to translate for everyone: "I'm not settling for this two-on-one crap! Next time, you're going down for sure! You better fight me again some time, Laxus." Laxus only walks past Natsu, irritating him, but later Laxus gives him a wave of his hand. When Laxus steps in the inner clinic, Fairy Tail's back to discussing the Fantasia and arguing like old times again.In the inner clinic, Makarov asks Laxus if he understands what he has done. He asks him if he knows what this guild is and he answers his own question by saying that the guild is a gathering place for comrades-in-arms, an agency for missions and a home to those who don't have their family. Makarov tells him that the guild does not belong to him; the guild is built upon the trust an honor of each member and that is how they formed stronger bonds that can't be found anywhere else. Laxus has violated that and Makarov cannot forgive that crime. Laxus mutters that he understands, he just wanted to make the guild stronger. Makarov sighs and tells him that watching him grow up was his reason for living and that all he ever wanted was for him to be happy. With shaking hands, Makarov excommunicates Laxus for what he has done. Laxus turns away and thanks him for everything. As he tells Makarov to take care of himself, Makarov starts to cry and orders him to go.