Princess Sally, Knothole Village's first ambassador, is sent on her first mission as an envoy of peace to the rest of Mobius. Sonic and the Freedom Fighters join her on her trek to The Hidden City of the Ancients. Before talks can commence, however, the Ancients ask the FF to help with a small problem they are having: a fire-breathing dragon.
Reunification, Part One
A mysterious echidna appears on the Floating Island. Rather than finding Knuckles, they find a place inhabited by The Dark Legion. Who is this echidna and what does it have to do with Knuckles?
Soon, Sally explains that the refugees have nowhere else to go. The President asks why don't they resettle them in Knothole, but Sally explains that the physical and cultural differences are too great. Sally also says that there are about seventy families that need to be settled. One of the chief of staff asks what they are willing to offer them in return. Sonic yells at them why they can't take them in, but Sally calms him down. Sally uses Nicole to show them all an image of Dr. Eggman. She explains that he was the one responsible for releasing Chaos, Sonic Super Specials, and later released Shadow in order to sabotage their energy supply Archie Sonic the Hedgehog Issue 98. She tells them that if they accept the refugees, their Kingdom of Acorn will turn over all tactical information on him. The President wants to sleep on that idea.
Later, while playing his guitar, Sonic goes over his thoughts of how he was asked by King Max to serve as Sally's bodyguard on the mission. Tails and Rotor come into his room and ask him if he wants to go to the video arcade with them. Sonic agrees, as a Zan is spotted flying outside the window.
Meanwhile, the dragon from last night appears in Station Square, causing destruction. The secretary recommends that they do something, at which the President thinks that Sonic could do it. Both then witness Sonic on their monitor about to confront the dragon. Sally and Antoine apologize to the President to excuse Sonic's rash behavior, but the President is grateful for the help. Tails, Bunnie and Rotor sent off to try and help Sonic, as he gets hit by the dragon's tail. In the blast of the dragon's fire breath, Sonic takes a risk and jumps into the water, just before Bunnie, Tails and Rotor arrive. The dragon flies away after winning the battle.
The President explains to Sally that if they take in the refugees, they would live in a city under siege by dragons. Sonic enters the room with a towel around him, with Bunnie, Tails, and Rotor and asks if they take care of their dragon problem, will Station Square accept the Overlanders. Both the President and Sonic shake hands when the President accepts the deal.