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Four years have passed since the final battle between Celestial Being and the UN Forces. Humanity, having established the Earth Sphere Federation, forms an autonomous peace-keeping force, A-Laws, separate from and above the formal Federation army. Given un-fettered discretion, A-Laws is charged with the duty to further unify nations, enforce the will of mankind, and dispose of terrorist cells. Unknown to the general public, however, is A-Laws misuse of power and inhumane tactics to oppress freedoms, doctrines, and ideologies in the name of unity.
In the final confrontation between Setsuna and Ribbons, the 00 Raiser is heavily damaged by Ribbons and the other Innovators; however, assistance from the other Meisters even the odds. In the ensuing chaos, Allelujah and Hallelujah work together to defeat Hilling Care, while Lockon barely manages to kill Revive Revival. Eventually, Ribbons and Setsuna damage each other to the point where neither one of them can continue fighting. However, Ribbons manages to steal one of the 00's GN Drives, which was 0 Gundam's, and puts it into the abandoned 0 Gundam. Setsuna, in turn, takes the remaining GN Drive and installs it back into the rebuilt Exia R2. After another difficult duel, Ribbons and Setsuna run through each other with their swords but Setsuna emerges the victor when the 0 Gundam explodes. In the epilogue, the Federation undergoes reformation as its new president disbands the A-Laws and pushes for better global peace; Saji and Louise rekindle their relationship; Allelujah and Marie have left Celestial Being to search for the meaning of their existence; Andrei Smirnov stays in the military to preserve peace like his father and mother; Patrick Colasour and Brigadier General Kati Mannequin marry; Klaus and Shirin work as politicians in the Federation Assembly; Marina returns with the children to lead a rebuilt Azadistan; Graham Aker is seen visiting Billy Katagiri in his office; Lockon and Setsuna leave with Celestial Being (who are still considered dangerous due to their refusal to disband) to space and Tieria disappears into Veda to watch over the world.
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The battle between the 00 Raiser and the Regnant comes to its conclusion when a Gaga attacks them both. Surviving the suicide attack, Setsuna has Saji take Louise to safety before Hilling and Revive attack the 00 Raiser. Meanwhile, inside Veda's core, Tieria corners Ribbons and reveals that he knows the truth behind their existence before being gunned down by Ribbons. Elsewhere, Louise finds herself in the company of Saji on the Ptolemy and attacks him, only to suffer a nervous breakdown upon finding he kept his ring. As the battle escalates with Hilling and Revive, Setsuna resorts to the 00 Raiser's Trans-Am system, which triggers his abilities as a pure Innovator. As he intercepts the thoughts of his friends, comrades and enemies, he soon realizes the situation is grim. Growing frustrated, Setsuna unconsciously activates the 00 Raiser's Trans-Am Burst system and blankets the battlefield in pure GN particles, driving Hilling and Revive off while causing a momentary ceasefire among everyone. Seizing the moment, Setsuna infiltrates the colony and closes in on Veda's position. Meanwhile, Ribbons finds his link with Veda severed by Tieria after he intergrated his mind into Veda thanks to the codes that Regene gave him prior. Tieria remotely activates the Seraphim Gundam's Trial System to shut down all units linked to Veda within its Trial Field, including the Gagas, Arche, Gadessa and Garrazo. With Veda secured, the forces of Celestial Being wrap up their battles, including Lockon, who finally avenges his family by killing Ali Al-Saachez. Setsuna locates Veda's core and finds Tieria dead but no sign of Ribbons. Before he can pursue Ribbons, Tieria reveals his presence inside Veda to Setsuna and explains the entirety of Aeolia Schenberg's plan to him. Setsuna departs for the Ptolemy but when Ribbons shoots down the Seraphim Gundam in his Reborns Gundam, Setsuna prepares to do battle one final time in the 00 Raiser.
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Though it seemed that Regene killed him, Ribbons emerges and reveals that he used Veda to transfer his consciousness into another body. After dealing with Regene's treachery by having Ali Al-Saachez shooting him, Ribbons reveals his massive colony ship Celestial Being, the full glory of Aeolia Schenberg's work. The colony fires a massive particle cannon and destroys most of the A-Laws fleet. Celestial Being launches an assault on the Innovators' colony ship and are countered by a swarm of Gaga units, which activate Trans-Am and launch waves of kamikaze attacks. In the ensuing battle, Patrick Colasour sacrifices himself to defend Kati's ship and the Seravee is completely disabled by Hilling Care and Revive Revival in their newly Trans-Am equipped suits. In the meantime, Setsuna and Saji confront Louise and Andrei; after disabling Andrei's Ahead, Setsuna moves in on the Regnant while Saji contacts Louise. The Ptolemaios II manages to enter the colony under cover from the Arios and GN Archer, but the ship is quickly infiltrated by hordes of automatons. Lockon fights a losing battle against Ali Al-Saachez in his rebuilt Arche Gundam, while Soma's GN Archer runs out of particles and is hit by a Gaga unit. Sumeragi heads out to face the automatons swarming the Ptolemy, but is shocked to find they were accompanied by Billy Katagiri, the supplier of the Innovators' Trans-Am systems, who then pulls a gun on Sumeragi. Inside Veda's core, Ribbons is stunned that Tieria managed to survive Seravee's near-destruction and is now facing him at gunpoint.
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The duel between Setsuna and Graham ends with Setsuna emerging victorious. However, he chooses not to finish off Graham and leaves as he tells him to live for the future. Setsuna and the others soon review Wang Liu Mei's information and determine that a fierce battle against A-Laws will ensue as they journey to Veda's core at L2. For this battle, Arthur Goodman has assembled a fleet of 21 ships and 108 units to crush Celestial Being once and for all. Initially, A-Laws is met with heavy resistance from Celestial Being in the form of new weapon upgrades for their Gundams. However, with particle disruptors forming an anti-GN particle cloud across the battlefield, the effectiveness of the Gundams' beam weapons is reduced greatly. A-Laws soon breaks through their defense and only an intervention by Katharon at the last second saves the Ptolemaios from destruction. Furthermore, in a reversal of fortune, the coup d'etat forces under the command of Kati Mannequin and led by Patrick Colasour launch a counterattack and the A-Laws fleet is thrown into disarray. Soon after, Goodman is killed when his flagship is shot down by the 00 Raiser. Meanwhile, Ribbons attempts to intervene in Regene's plans by reading his thoughts, but ends up taking a bullet to the head when Regene shoots him.
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Setsuna and Saji head out to Lagrange 5 to locate Wang Liu Mei, who has, along with Hong Long, miraculously survived the attack by the Throne Drei. Nena intercepts the pair and shoots Hong Long, who sacrifices himself to allow Wang Liu Mei to escape. Liu Mei encounters Setsuna, giving him the coordinates to Veda. By the time Setsuna returns the 00 Raiser, it is taken hostage by Mr. Bushido as he reveals himself as Graham Aker and forces Setsuna to agree to a duel against him. As the battle occurs, Liu Mei is killed off by Nena as she tries to escape. But knowing she would eventually turn on them, Ribbons takes control of Nena's Haro and tells her that someone's coming to deliver judgement. Though expecting it to be Ali Al-Saachez, Nena is brutally killed off by Louise instead, finally avenging the deaths of her parents and relatives at the cost of her sanity. In the course of the duel, Graham and Setsuna appear to each other in an alternate reality due to the presence of GN particles. Here, Setsuna, exhibiting signs of becoming a purebreed Innovator, reveals his revelation: Aeolia Schenberg created the GN Drives and Celestial Being for the sole purpose of preparing all of humanity for innovation.
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After shooting Lasse and taking Mileina Vashti hostage, Anew works with Revive to steal the 00 Gundam and the 0-Raiser for Ribbons. However, Anew is unable to steal 00 when Setsuna and Lockon catch up to her, while Revive is forced to give up the 0-Raiser when he is outwitted. They manage to escape, and while Lyle resolves to defeat Anew, Setsuna assures him that he will shoot Anew instead if the situation calls for it. When Revive, Anew, and Hiling return with new machines, along with Louise in her new Regnant mobile armour, Celestial Being must defend itself without the 00-Raiser. Lyle risks the near destruction of the Cherudim to get through to Anew and appears to succeed, but is caught off guard when Ribbons takes control of Anew. As she prepares to strike him down, Setsuna appears and shoots her as he promised. In a GN particle induced vision, Lockon and Anew share one final moment together before Anew's suit explodes and kills her. Back on the Ptolemaios II, Lockon takes out his feelings on Setsuna before collapsing in grief.
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In the course of the Ptolemaios II's encounter with an A-Laws task force, Revive is captured after his fight with Tieria. Saji and Louise meet in battle, the two being transported to an alternate reality and Louise is left shaken in her resolve to fight against him. While Sumeragi and the Meisters interrogate Revive, his presence on the ship causes Anew to reveal her allegiance to the Innovators and she declares the hijacking of the Ptolemaios II as she fires her gun at Lasse Aeon. Wang Liu Mei and Hong Long try to leave Ribbons's hideout to deliver Veda's location to Celestial Being, only for their ship to be shot down by Nena Trinity with Gundam Throne Drei.
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Four months after the destruction of the orbital elevator in Africa, the world is a different place. The AEU's orbital elevator is rebuilt; Katharon has lost most of its fighting strength and its members are systematically hunted down; the Federation grants A-Laws complete control over the entire military. Despite their success in destroying the second Memento Mori, Celestial Being endures wave after wave of A-Laws attacks, thanks to an oblivious Anew Returner's networking with the Innovators. Tieria suggests to the Ptolemy crew that the time is right for them to carry out a mission to take back Veda. For that purpose, Sumeragi designs a plan centered around capturing an Innovator and the plan begins as the A-Laws attack yet again.
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After analyzing the unusual redeployment of Federation troops around the elevator, Sumeragi and Kati are horrified to realize that the troops are anticipating the elevator's collapse and that the A-Laws plan on completely destroying the elevator. In space, a rebuilt Memento Mori prepares to fire upon the orbital elevator. Despite the best efforts of the 00-Raiser to destroy the second Memento Mori, the beam fired from the badly damaged satellite weapon is still sufficient to severely damage the elevator; pieces of falling structure begin devastating the surface below. The Gundams' efforts to destroy the falling debris are helped by the combined efforts of Marie's GN Archer, Katharon, the Federation army and Kati's forces after a desperate plea for cooperation broadcast by Sumeragi from the Ptolemaios 2. In the aftermath, Andrei Smirnov unexpectedly slays Hank Hercule, and soon associates his father Sergei with the coup d'etat.
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The A-Laws attempt to retake the orbital elevator using assault automatons to kill both the rogue troops and civilian hostages alike, although the Innovators continue to manipulate the information released to the public in order to conceal the A-Laws' brutality. Meanwhile, Setsuna is locked into a fast-paced battle with Mr. Bushido and his Masurao until the timely arrival of the Ptolemaios 2 and the other Gundam Meisters. After analyzing the unusual redeployment of Federation troops around the elevator, Sumeragi and Kati are horrified to realize that the troops are anticipating the elevator's collapse and that the A-Laws plan on completely destroying the elevator. In space, a rebuilt Memento Mori prepares to fire upon the orbital elevator.
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