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While visiting the town, the group spies some three contestants picking on another person. Rockaku mocks them and the three get ready to fight him. However, a mysterious person arrives and stops the fight. That night, the three contestants abduct Maiko to use her a bait to defeat Reiji. Reiji goes after them and is led into a fight. The leader starts attacking him with Maiko tied up to the dragon. Unable to fight back, Reiji takes a heavy beating. Just when he is about to be defeated, the mysterious warrior from before arrives and reveals himself to be the winner of the last tournament. He saves Maiko and Reiji is given the oppurtunity to defeat them. However, Reiji says he'll spare them so they can fight properly in the first round. The next morning, Maiko tells Reiji and Rockaku to stay back so she can get revenge on them. Maiko easily beats all three of them and Daisuke arrives for the match, only to discover that it is already over.

Reiji and the gang soon learn about an evil dragon who destroyed Madina's home, and that he is keeping people hostage. In order to save them, and against Rockaku's wishes, they are forced to risk their own particpation in the tournament. They find one lady, but fall into a trap where a dragon made of liquid can burn anything it touches. Kyoji arrives to save the day, and we find out a bit more about Mukai's past. Unaware to Reiji and the others, the lady they are trying to save is Mukai's mother. Kyoji announces that they will be fighting each other in the next round.

While Maiko and Sayaka duke it out, Daisuke tries to sace the mysterious woman on his own. After Maiko and Sayaka's match ends in a draw, Reiji fights against Kyoji. When Chibi finally gets the strength to defeat Kyoji, Kyoji gives up, saying he wans to learn more about Reiji. Now Reiji must fight against Mukai, while at the same time Daisuke finds out the truth about the mysterious woman.

With the battle against Mukai over with, Reiji watches as Hikaru's team mercilessly beats down Sun Wols'. Unable to contain his rage, he goes in search of Hikaru that evening. However, when Hikaru challenges Reiji to a match, can Reiji defeat him after learning his true motives?

Mukai confronts the one who kidnapped his mother in the first place, and he wants revenge for his mother's death. In order to save him, Reiji and the others give up their chance to win the Dragonic Heaven. Will their decision allow Kouhei to steal the Dragonite?

The tournament may be over, but that won't stop Rockaku from taking revenge on Kouhei. As Kouhei tries to escape from Rikyu with the Dragonite, everyone tries to stop him. When Kouhei proves to be too powerful for Rockaku to handle, somebody will have to pay the ultimate price to protect him!

While Reiji and the others try make it back to Earth, Kouhei battles his own father for control of Shinryu.

Reiji awakes and finds that he's in his room. When he goes to school, Daisuke and and Maiko both seem to have forgotten anything. In truth, they're pretending they forgot because they don't want to face Shinryu. Reiji finally convinces them to face Shinryu one more time, and with the help of L, S, Meguru, and Ichiro, prepare for the final showdown.

It's the final battle against Shinryu, and even with his new allies, Reiji can't defeat Kouhei. It's time for Chibi to prove his worth as a hero. However, a return home forces Reiji to leave his friend behind...forever!