The negotiations between Cardeas and Zinnerman break down as a mobile suit battle begins inside the colony, claiming the lives of Banagher’s classmates.
Banagher rushes back to Magallanica to help Audrey, but loses his way, and in an industrial block he discovers a white mobile suit with a single horn. Cardeas has been mortally wounded by Alberto, who infiltrated Magallanica, and he now reveals that he is Banagher’s long-estranged father.
Entrusting Banagher with the hope that he can change the fate of the Vist family, who have been cursed by Laplace’s Box, Cardeas gives him the Unicorn Gundam, the key to the Box, and then disappears amid the flames.
As Banagher’s suppressed childhood memories return, he activates the Unicorn Gundam and confronts the Sleeves mobile suit Kshatriya. He pushes it out of the colony, but finds himself in peril as it counterattacks.
At this moment, the Unicorn Gundam’s NT-D system activates, and it undergoes a metamorphosis. Seeing its form, Audrey murmurs the word “Gundam…”