Continuing from Stage 1, ZAFT insurgents continue their assault at the Kirgitz plant and gun down many civilians. One of the Alliance soldiers looks up and is relieved to see Strike Noir, Verde Buster, and Blu Duel land and easily wipe out the insurgents. At the commander center, Sven's commander noted with his superiors that the insurgents were a lot better armed than expected and he suggested they refrain from launching a full-scale retaliation.
In a bar Shams, Mudie, and Sven along with several Alliance soldiers watch a video that was made by the three children that piloted the GINN Insurgent Type in South America. It is revealed that the children had lost their parents, who were Coordinators, to Naturals and thus called for the extermination of Blue Cosmos and Naturals. Shams scoffs off at the news while Mudie comments on how her teacher noted, "the only good Coordinator is a dead one." At the same time Sven has a flashback to his childhood where he wanted to become an Astronomer. Unfortunately, his parents are killed in a terrorist bombing at a space museum and thus he is taken into the anti-coordinator training program for the Alliance.
Later on, Sven and a team of GAT-01A2R Slaughter Daggers are ordered to eliminate a Coordinator refugee camp which is believed to be training terrorists. Sven questions if his targets are only the terrorists but his superior asks him if he can distinguish between terrorists and civilians. The team lands in front of shocked refugees and Sven has another flashback of his training at the anti-coordinator program. Muruta Azrael appears in Sven's flashback seemingly watching over Sven's progress. Sven then gives the order and the entire camp is slaughtered with himself standing over the ruins in the aftermath.
Meanwhile at the DSSD space station Selene greets a group of scientists that all know her and she goes to check on the mobile suit 401. 401 was commented to have a learning AI system that also has an optional two-seater cockpit so that the computer can learn from the pilot's experience to be more efficient. Selene also worked on a new propulsion system the Voiture Lumiere which works as a solar sail and will be attached to 401.
On a cold northern plain of Russia the Earth Alliance ground carrier Bonaparte, which is carrying a GFAS-X1 Destroy, is under attack by several ZAFT units. Mudie takes off and engages several ZGMF-1000 ZAKU Warriors and TMF/A-802 BuCUEs with Shams on top of the carrier providing covering fire. A BuCUE catches Mudie by surprise and disables her with a trio of TMF/A-802W2 Kerberos BuCUE Hounds finishing her off by tearing Blu Duel apart with their beam fangs. Sven destroys the remaining ZAKU Warriors and quickly intercepts the Cerberus BuCUE Hound and easily dispatches them. Unfortunately, Mudie is already dead, much to a dismayed Shams. Later on board, Sven passes by Neo Roanoke and Sting Oakley who are carrying Stella Loussier on a stretcher. Shams wonders what was going on and Sven comments that "it" was probably a ruined "Extended" seeing as how they don't live long. Shams then informs Sven of their new orders to infiltrate DSSD and steal the new mobile suit being produced there and have full authorization to use whatever means necessary.
Selene's co-observer Sol in the mobile suit during the propulsion system test calls 401 a Stargazer after remembering words from Edmond. She then enters the name into the computer as Stargazer. The AI Unit takes its new name as Stargazer. They test the Stargazer and the unit responds under all expectations as a new unit capable of utilizing the new propulsion method.