Cyclops Attack
The Principality of Zeon's elite Cyclops Team stage an amphibious assault on a Federation base in the arctic circle. They quickly overrun the base defenses, but are unable to prevent the launch of a space shuttle carrying the Federation's newest prototype Gundam. The shuttle ascends into space, leaving Cyclops Team commander Steiner Hardy to mourn the loss of one of his pilots in this failed mission.

Libot Colony
The space colonies of Side 6, which declared their neutrality early in the conflict, have thus far been spared the destruction of war. For youngsters like Alfred "Al" Izuruha, a resident of Side 6's Libot colony, the distant war seems like a fascinating adventure. Al and his friends pass their time collecting military souvenirs and arguing over their favorite mobile suits.

To win a bet with his friends, Al sneaks into Libot's spaceport in search of proof that the Federation Forces now have mobile suits of their own, but all he finds are mysterious cargo boxes. The next day the colony is raided by Zeon forces, and Al encounters a young Zeon pilot named Bernard "Bernie" Wiseman. Just before he's picked up by his departing comrades, Bernie trades his rank insignia for Al's camera.

Granada
The Zeon forces return to the Granada lunar base, where they determine that the cargo boxes captured on Al's camera are the same ones that were loaded onto the shuttle at the Federation's arctic base. Bernie is assigned to the Cyclops Team as a replacement pilot, and the team is then sent to infiltrate Libot and track down the hidden Gundam.