It has been three weeks since the marriage. A powerful legion of evil souls now terrorizes Eldoria, causing the people to fear and panic. The leviathan within the seal absorbs this fear and panic. In response, the king orders the ten divine lords of Eldoria to send their students to take down the evil souls. The students are dispatched, fully determined to eliminate the threat.
They are split into two groups — Theo, Deborah, Auren, Klaus, and Traven on the first team, while the others form the second. Both groups are sent to different locations.
Theo's group arrives at their destination, where they find that the evil souls have evolved and can now take on human form. Theo and his team begin fighting, showing excellence in their sword techniques. However, this time, hundreds of evil souls keep advancing. A swarm of them targets Theo, so he uses the first Phoenix Sword technique among many — "Solar Flare," a move that produces a large amount of scorching flame by channeling spirit energy into the sword and swinging it in circles.
The souls are ignited with fire, and a thick, dark aura leaves them as they burn.
Meanwhile, Deborah uses her lunar manipulation to create slashes of white flames — "Moon Flames" — burning the souls. While using her powers, she begins to feel dizzy and is almost killed by a few rampant souls. Luckily, Traven comes to her rescue and uses his earth manipulation to create an earthly cage, slamming it shut and crushing the evil souls. Soon after, Deborah faints in his arms. Theo carries her while Auren covers them.
Traven uses wind manipulation to lift the souls into the air and crash them back to the ground. Klaus, with his water manipulation, forms a massive sword and performs an ice slash called "Doom's Ice," freezing the souls. He then claps his fists, shattering them into pieces. Theo carries Deborah on his horse, and they head back to the palace.
Upon arrival, they find the second group wounded. Klaus inquires, and a member named Luke says, "A thousand souls attacked them." Shocked, Klaus and the others report the incident to King Xavier.
Theo asks Deborah why she fainted. She replies, "Don't worry, I think I was just stressed. It's nothing serious."
Theo responds, "Your health isn't minor. I think you should see a physician."
Deborah refuses, saying, "I'm okay, probably nothing."
Traven interrupts, "The king has called us."
They proceed to the king's palace. The hall is adorned with pillars draped in expensive fabrics, thrones made of gold, a wool carpet, and golden floors. The ground layer is covered in mist. The ten divine lords of Eldoria are also present as they discuss the urgent issue of the increasing number of rampant souls.
Elsewhere, in the prison, the Wise One is visited by a dark, misty figure. In a sly, strange, and manipulative tone, the figure asks, "Do you want more power?"
"Yes, I do," the Wise One replies.
"Let's make a deal," the figure says. "More power will be granted if you bring me the Pearless Jade, which bears the curse of Val'thar."
The figure writes a spell on the Wise One's hand, saying, "When you find the jade, place it into the writing array on your palm." The black figure grants him more power than he's ever had.
With a powerful aura, the Wise One breaks open the prison gates. A few guards try to stop him but are blown away by a flame burst.
Soon, word spreads that the Wise One has escaped. The news reaches Theo. He, along with Auren, Klaus, Traven, and Deborah, prepares to confront him. They meet the Wise One at the gates of the palace. Theo, Deborah, Traven, Klaus, and Auren surround him, and a swift battle begins.
Theo fights him alongside the others, but to their surprise, the Wise One keeps up with their moves and even surpasses them. Klaus uses water manipulation to freeze the ground, locking the Wise One's legs. Deborah flies up to strike, but mid-air, she becomes dizzy. Taking advantage of the distraction, the Wise One breaks free using dark powers and takes Deborah hostage.
"If anyone takes a step, I'll kill her without hesitation," he says, holding a hand to her neck.
"What do you want?" Theo asks.
"I need two things from you: the jade that bears the curse of Val'thar and the sword of Val'thar. If I don't get them, consider her dead. I will return at 12 noon tonight," the Wise One says, then flies away with Deborah.
At noon, Theo, Klaus, Traven, Auren, and Lord Aaron meet to discuss the Wise One's demands. Traven wonders why he wants the cursed jade. Nevertheless, they bring out the jade, and at exactly 12:00 PM, the Wise One returns with Deborah.
"Where is the jade and the sword?" he demands.
Theo replies, "Let her go first."
The Wise One throws Deborah over, and Theo throws the jade and sword. As the Wise One puts the jade into the array and opens the sword, it unexpectedly explodes, pushing him back. Traven had carved a fake sword and filled it with explosives.
Enraged, the Wise One tries to retaliate, but his veins turn black, his hypo pills disappear, and a black smoky aura exits his body. It transforms into an evil soul — stronger than any Theo has ever faced.
A rough battle begins. The soul, filled with murderous passion, charges Theo and Deborah. Theo fights with the Sword of Val'thar and uses the "Solar Flare" technique, igniting the soul with fire and weakening it. Deborah uses her lunar manipulation to unleash an elegant slash, but she again grows dizzy. Traven steps in, shielding her and channeling earth energy into his sword. He performs a devastating slash in combination with Klaus, and the soul is vanquished. It fades into thin air as a black aura flies away.
Deborah faints again. While returning to the palace, they encounter a swamp of evil souls and begin fighting. Theo, exhausted, uses his second Phoenix Sword technique — "Flaming Descent" — a downward-to-upward slash like a meteor strike. The blade doubles the wielder's power on contact. This vanquishes all the souls on Theo's side.
Klaus and Traven execute a combo attack, merging earth and ice slashes, which Auren compresses with wind manipulation and sends toward the remaining souls, finishing them off.
They arrive at the palace. Theo takes Deborah to a female physician, who tells him, "You're about to be a father. Deborah is pregnant."
Theo is stunned, joy swelling in his heart. He rushes to Deborah, hugs her, and tells her the news. She is equally surprised.
Later, they share the news with Lord Aaron, who throws a grand feast in their honor. During the feast, Klaus sits on the rooftop drinking liquor when he spots a young lady perched on a tree. She falls, but Klaus leaps into the air just in time to catch her.