A Neo-Zeon remnant group called the “Sleeves” travels to Side 4's Industrial 7 colony, so that its captain, Zinnerman, can receive a "key" to something known as “Laplace's Box” from Vist Foundation leader Cardeas Vist. The item is said to be capable of either restoring the future or destroying the world.

The transformed Unicorn Gundam overpowers the Kshatriya and Marida is ordered to retreat. The Unicorn is picked up by the Londo Bell ship Nahel Argama. Banagher is questioned by Daguza Mackle about how he came to possess the Unicorn Gundam but is interrupted by the Sleeves' surprise attack.

The Earth Federation and ECOAS execute their assault on Palau, with the intention of rescuing Banagher and the Unicorn. Saboteurs destroy Palau's connecting bridges, while the Nahel Argama unleashes its Hyper-Mega Particle Cannon, pushing the asteroids towards each other to damage much of the Sleeves' forces. Any Sleeves unit getting out is ambushed by ECOAS units hiding in the rocks.

The Zeon Remnant forces attack the Federation Capitol Building at Dakar in a feint operation to allow the Garencieres to descend to Earth safely. Banagher is revealed to have been rescued from death by landing on the Garencieres mid-descent. Marida is transported to a Federation facility in North America, where Martha Vist Carbine manipulates her using the wreck of an old Mass-Production Qubeley, which she had piloted in the past.

After neutralizing the Delta Plus, the newly arrived Banshee captures the Unicorn and returns it to the Ra Cailum, where Riddhe encounters and attempts to question Alberto Vist of Anaheim Electronics' motives, only to be ignored. Meanwhile, on the Garuda, Martha requests Mineva's assistance to coerce Banagher's cooperation in disclosing the location of Laplace's Box. On the Ra Cailum, Bright speaks with Banagher and comes to terms with the latter's actions, before learning of the Federation's covert deployment of the new Dogosse Gier-class battleship General Revil. He sends orders to the Nahel Argama, instructing them to rendezvous with the Garencieres.

Full Frontal and Angelo Sauper comes in to rescue the Nahel Argama and the Garencieres as the EFSF flagship General Revil bears down on them. The Londo Bell Tri-Stars chase down the Garencieres, which suddenly blows up as a decoy to buy time for the Sleeves to take over the Nahel Argama.

The Sleeves test the AMX-107R ReBawoo mobile suit in a shoal zone on December 3, UC 0095. Having learned about the test, the Earth Federation and Anaheim Electronics sends one ship each to investigate the Sleeves' test as Martha Vist Carbine watches the operation unfold. The Federation deploys the Unicorn Gundam Unit 3 Phenex in a bid to destroy the ReBawoo and the Unicorn Banshee.