Seven months have passed since the end of the One Year War, Universal Century 0080. Although the Principality of Zeon suffered devastating damage and a de facto defeat in the defense of A Baoa Qu, several remnant forces on Earth refused to surrender and continued their all-out resistance. Daryl Lorenz of the Living Dead Division, who fought in the Thunderbolt sector, also descended to Earth after losing his Psycho Zaku and became the leader of a mobile suit squad composed of Aggguys. As an intelligence operative, Daryl was investigating the movements of the South Seas Alliance, a faction within the Earth Federation Forces that was expanding its influence.
Meanwhile, Io Fleming, who had fought fierce battles against Daryl, was also ordered to participate in a top-secret mission commanded by Staff Officer Monica Humphrey. He descended to Earth as the pilot of the Atlas Gundam. The assault landing ship Spartan, to which Io was assigned, encountered the South Seas Alliance border guard over the Indian Ocean. Upon hearing the commander's voice, Io was shocked.
Earth, the new battlefield for the fated rivals Daryl and Io. The fierce three-way battle that erupts there between the Earth Federation Forces, the Principality of Zeon, and the South Seas Alliance—what will become of it?
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