Once in the town of Baron, the group stumbles upon Yang, their lost ally and friend in a bar. Unfortunately, he fails to recognize Cecil and he attacks with some guards. Cecil and the others are forced to fight and try to get Yang to remember who he is.
Using the Key of Baron, the team traverses the old waterway which leads to the back of Baron Castle. Once inside, they meet Baigan, the captain of the guards, who is happy to see them and lend his aid. However, Palom and Parom sense that not everything is as it seems...
After learning of Baigan and his true form, the team races to confront the King of Baron. However, it turns out that the king is actually the Fiend of Water, Kainazzo. And he is ready for them.
Having fended off Kainazzo and met up with Cid, master engineer, the group leaves the thrown room. However, Kainazzo decides to play one more trick, and has the room slowly collapse with the team trapped inside. With no other options, the brave twins give the ultimate sacrifice to save everyone. Afterwards, the disheartened group flies away with the Enterprise, Cid's secret new airship. However, the innagural flight is interrupted by Kain, who delivers Rosa's ransom request.