The Harvest Festival in Magnolia has started and people from all over the world gather to witness it. One of the attractions of the festival is the Miss Fairy Tail Contest, a beauty contest of the females in the Fairy Tail Guild. The contestants are Cana Alberona, Juvia Lockser, Mirajane, Erza Scarlet, Levy McGarden, Bisca Mulan and Lucy Heartfilia, respectively. Each girl is to appeal to the audience with her Magic to show off her abilities and her beauty. During Lucy's round, Evergreen interrupts the contest and declares herself the winner. When Lucy complains, Evergreen turns to her and using her Stone Eyes Magic, Lucy becomes stone. She also reveals that the girls backstage have been turned to stone as well, even Erza. When Makarov orders her to turn them back, Laxus appears along with the rest of the Thunder God Tribe: Freed Justine and Bickslow. Laxus asks Makarov to play a game. He almost zaps Lucy with his lightning but deliberately misses. Laxus declares that the girls turned to stone are his hostages and that he'll destroy them one by one if they don't follow the rules and that he's serious. Freed and Bickslow add that it's just a game to find out who's the strongest in Fairy Tail. Laxus announces the Battle of Fairy Tail in which the last one standing among them is the winner. Laxus and the Thunder God Tribe claim this as entertainment for the festival.
Natsu stands up, claiming it's all too easy to understand and that he's all fired up. He tells Makarov that it's a festival and they should do it.
Laxus tells him his arrogance pisses him off. Natsu charges toward Laxus. Warren Rocko warns him that he got beaten to a pulp by Laxus before. He claims that he was a kid then, and when confronted by the fact that it was just last year, Natsu retorts that he was a kid last year. Laxus tells him his lack of flair pisses him off more. When Natsu comes in for a flaming punch, Natsu gets zapped by Laxus' lightning. He lands on the ground steaming.
Evergreen tells them that if they want the girls returned to normal, they have to beat the Thunder God Tribe and Laxus; a battle of a hundred Fairy Tail Mages against the four of them. The time limit is three hours and if they don't make it in that time frame, the girls turn to dust. Magnolia is the battlefield and once they're found, the battle starts. Makarov enlarges himself through his Titan Magic and commands that they stop. Laxus tells him to calm down and that they should enjoy. A bright light engulfs him and the Thunder God Tribe and they disappear as the Fairy Tail Mages hear him say that the battle of Fairy Tail has started. The Fairy Tail Mages quickly file out of the guild, claiming they'll get Laxus. Makarov follows but ends up slamming into one of Freed's runes that state anyone over the age of eighty or is a stone statue cannot exit the building. Since the rules of the runes are absolute, Makarov starts to wonder who he can send to defeat Laxus. He thinks of Erza first, but she's currently a statue. He suddenly sees Reedus Jonah left behind. Reedus tells him that he's afraid of Laxus and so Makarov orders him to pay a visit to Porlyusica in the East Forest to ask for a cure for petrification. Natsu suddenly wakes up. When Makarov thinks about Natsu's determination and enthusiasm, he sends Natsu to battle Laxus. Psyched, Natsu dashes off. However, for some reason, he cannot exit the guild as well and slams face-first into Freed's runes.