Galuna Island arc

The Galuna Island arc is the fourth story arc of the Fairy Tail series.

It tells the story of Natsu and Happy wanting to go on an S-Class Mission, which is forbidden for lower-class Mages. He takes a request without permission, and dragging Lucy and Gray along with him. Upon arriving on the island and being faced with a request more difficult than they initially thought, they discover another event that requires their attention: the resurrection of the demon Deliora by an old friend of Gray's, Lyon

The Second Floor Thieves and the S-Class Request
Upon Natsu and Erza's release, they continue their battle which Erza wins in an instant. While the guild laughs at Natsu's lame defeat, Makarov starts to feel sleepy. Soon after, the Mages of the guild fall to the floor and start snoring. A mysterious masked man, Mystogan, enters the guild and takes a job from the request board. The sleeping spell had been caused by him. As he leaves, Makarov asks him to release the spell. Soon after, the sleeping Mages wake up with the exception of Natsu. The Mages tell the inquisitive Lucy about Mystogan, his strength and how it seems that he doesn't like being seen and doesn't like to talk. Laxus Dreyar, another one of the guild's strongest Mages, shows up on the second floor and states that he knows Mystogan's face. As he brags about him being the strongest in the guild, Natsu wakes up and challenges him to a fight. Despite the others' warnings for him to stay down, Natsu charges towards the second floor. However, Makarov catches Natsu and prevents him from going up, stating that only those with his permission can walk on the second floor.

Later, Lucy asks what Makarov meant by Natsu not being able to go on the second floor and Mirajane tells her that the second floor is where the S-Class Requests are posted. Mirajane adds that only S-Class Mages are allowed to take the S-Class Requests because those certain quests are far more difficult than normal quests and can lead to death should the slightest mistake be made. Lucy later returns to her apartment and finds Natsu and Happy doing intense workouts in her house. She tries to make them leave, but then Natsu tells her that he's decided that they should go on an S-Class Job and Happy shows her the poster of the job they had stolen. Natsu tells her that if they do the job right, the Master would have to recognize them. Lucy refuses on the grounds of rule-breaking and the request's location, which is on a "haunted" island. Natsu and Happy leave afterwards but they purposely leave the poster on Lucy's floor. She sees it and spots an additional reward: the Gate Key to one of the twelve Zodiac Celestial Spirits. Unable to resist temptation, Lucy gives in and chases after Natsu and Happy, eager to join them.

The next day, Mirajane notices the missing request tells the master about what happened. Just as everyone started to wonder what happened, Laxus says he saw a cat with wings steal the request but did nothing to stop it. The guild quickly realizes that it's Natsu, Happy and Lucy who were the culprits. Makarov tells Laxus to bring them back, but he bluntly refuses because he has other things to do. Gray then stands up volunteers to bring them back.

The Cursed Land: Enter Galuna Island
Natsu, Happy, and Lucy arrive at Hargeon Town, hoping to find a boat to take them to Galuna Island, which Natsu doesn't want and proposes swimming there instead. They ask several sailors but all of them refuse. As they try to find another way to reach the island, Gray shows up behind them to take them back to the guild, threatening them that if they don't they could face expulsion and Erza's rage. Natsu still doesn't care and wants to continue with the mission and almost gets in a battle with Gray. As they prepare their Magic, they are spotted by the last sailor Lucy and Natsu asked., He calls out to them to inform them that he changed his mind and will take them to Galuna. Natsu knocks out Gray and takes him with them for fear of him going back and telling Erza.

Along the trip, Gray, now conscious, asks the sailor why he let them on. He introduces himself as Bobo and reveals to them that he was once an inhabitant of the cursed island. Bobo reveals to them the demonic curse of Galuna through showing them his arm which is that of a demon's. At the island's summit, light from the moon strikes, and a ritual unknown to everyone else occurs.

When the team spots the island, Bobo suddenly disappears and a giant tidal wave arrives to wash them away. In the morning, the gang finds themselves washed up on the shores of Galuna with no way to leave. They continue their quest, this time with Gray willing to help. By nightfall, they arrive at the gate to the village. To prove that they are legitimate guild Mages, they all show the gate guards their marks and are then allowed entrance. The team is greeted by the village chief and the villagers all covered in robes from head to toe. To easily explain their problem, everyone takes off their robes, showing how parts of their bodies are also like that of a demon's, same with Bobo the sailor. The chief, Moka, explains that since the moon turned purple a few years back, the curse that turned them to demons started. At first, them team is in doubt, but indeed, when the clouds clear, they see that the moon above the island is purple. Once the light shines on the villagers, their whole bodies start transforming to that of a demon's, and the village chief explains that that's the effect of the moon's Magical Power. He adds that when morning comes, they return to their human forms, but there are those that are unfortunate and lose their minds. The villagers were left with no choice but to kill those that do, since if they don't, they could kill every other villager. He reveals that he had done the same to his own son, Bobo, shocking Lucy and Gray. The villagers plead for them to stop the curse through only one method: destroy the moon.

The Demon Underneath
Stumped with no solutions on how to execute the request, the team sleeps the night off and heads out to explore the island the next morning. They are confronted by a gigantic mouse in a maid's outfit along the way, but Gray easily defeats it. Soon after, they discover a temple and enter it to investigate. When inside, Natsu accidentally destroys the floor and they discover a hidden cave underneath the temple. They explore further and suddenly, they find a huge frozen demon, which Gray instantly recognizes as the Demon of Disaster, Deliora, and begins to break down. They later hear footsteps, so they hide. From the cavern, two people emerge, discussing the Moon Drip. Following them is a girl who laments the damages done on Angelica, the gigantic mouse from before. Happy notes that they are all not from the island. The three discuss the intruders that have seen Deliora and they all decide to kill them should they cause more trouble.

When the three have gone, Gray explains that Deilora is an immortal demon that destroyed villages from the Northern Continent and was sealed in ice by his former mentor, Ur, at the cost of her life. He starts to look angry and determined, swearing that the "Reitei" that the three people mentioned earlier won't get away for soiling Ur's name. When Natsu suggest unfreezing the demon, Gray punches him and tells not to think of that. He starts to wonder what is going on since Deilora is trapped in an unmeltable ice. There would be no reason to move it to Galuna and even if they did they shouldn't have found its hiding location. He then proposes that they wait until nightfall to see what happens. Natsu falls asleep in an instant and Grays starts to remember his training days with Ur. While waiting, Lucy decides to summon Lyra to pass the time. Lyra then sings a song that makes Gray cry. Later, when night does come, purple moonlight shines down from above and hits Deliora. The team moves out to look for the source of light. When they reach the top, they see a ritual taking place. Lyra shows up from behind them and explains the ritual, Moon Drip. It gathers the power of the moon, which Lyra explains has the power to break any spell. She adds that it might also be the Moon Drip that caused the villagers' deformed bodies. Their talk is interrupted when they spot a masked figure among the crowd of people in the ritual, Reitei, who is the man behind Moon Drip. When informed of the intruders, he immediately asks for the obliteration of the village on the other side of the island. His subordinates, the three people from before, quickly comply. As Natsu and Lucy figure out what to do, Gray recognizes the voice of the masked man.

Reunion of Pupils
Unable to take it anymore, Natsu reveals the group to the opponents, halting Reitei's subordinates from moving out. However, even with the knowledge that their real enemies are the Fairy Tail Mages, Reitei still orders the obliteration of the village, angering Natsu. However, Gray attacks first with his ice, but Reitei counters with his own ice Magic, cancelling out Gray's. Reitei's name is revealed to be Lyon, as it seems he and Gray knew each other previously. Lyon's subordinates start to leave and Natsu attempts to stop them but is frozen by Lyon. Happy then takes Lucy and flies away to chase the three. Natsu, despite having most of his body frozen, attempts to charge at Lyon but Gray kicks him off the temple to save him, leaving Gray and Lyon to battle alone.

Meanwhile, Natsu, angry at Gray for throwing him off, waddles over to the village while out on the sea, on a pirate ship, Erza heads towards the island, determined to stop the rulebreakers.

Lyon is revealed to be Gray's senior pupil when they were both under Ur's wing. When Gray exploits Lyon's mistakes in resurrecting Deliora and soiling Ur's name, Lyon retorts that it was Gray who killed Ur and that he has no right to speak her name. The two battle, but Lyon gains the upper hand with his one-handed dynamic Ice-Make. Lyon's dream was to surpass Ur one day, but due to Gray's mistake that took away Ur, Lyon's dream has been denied until he realized that if he defeated the one thing Ur couldn't, Deliora, then he could continue dreaming. Gray is easily overpowered by Lyon as he was still in shock and is defeated easily.

Gray wakes up to Natsu, still part-frozen, standing over him. He climbed back up so he could locate the village because he didn't know where he was and found Gray sprawled out there with no one else around. Natsu carries Gray and sets out for the village which he has already found. As Natsu walks, Gray recalls the day when he was young and Ur and Lyon tried to stop him from confronting Deliora. He also remembers the day before when he tried to prevent Natsu from going on the S-Class Request. He starts to cry, stating he had no right to do that. Natsu then yells for him to stop getting insecure and declares that they are Fairy Tail, the guild that doesn't know when to stop.

The Fire Dragon vs. The Neutralizing Wave and the Paralyzing Nails
Lucy arrives at the village to tell them about what is happening and that they may be able to undo the curse without having to destroy the moon. She then summons Virgo and plans to make a pitfall trap to capture the enemies. However, instead of the enemy, she accidentally traps Natsu who ran straight into the village and down the pitfall despite having seen it. On the bright side, the ice trapping Natsu is not anymore present. Lucy's pitfall trap is useless because they suddenly see Lyon's subordinates on the giant mouse, Angelica, flying in the air. Team lyon plans to destroy the village with a poisonous jelly, nuke'em jelly, which melts everything, but their plan fails when Natsu has the villagers compress in the center of the village and then uses his Fire Dragon's Brilliant Flame to push the jelly outwards. Everyone is safe, but Bobo's grave is destroyed in the jelly rain and further knocked down by the enemy. The three of them vow to give all of them instant death.

The villagers evacuate. Sherry, the girl, rides on Angelica to chase them but Lucy manages to take them down by tickling Angelica, causing the three of them to fall to the ground. Happy leaves to go after Lucy while Natsu faces off against Toby and Yuka. At first, Natsu has trouble fighting Yuka since his Magic Waves cause vibrations that can neutralize other Magic. Realizing that using his Magic won't be effective, Natsu penetrates Yuka's wave with his bare arms. However, it causes him a lot of pain. Despite that, Natsu perseveres and pushes his whole body in. He then ignites his elbow in flames which gives him the needed boost to punch and knock out Yuka. He then faces Toby and his paralyzing nails, he wins easily by tricking Toby into paralyzing himself with his own nails.

Betrayal of the Celestial Spirits: Lucy vs Sherry
Lucy manages to bring down Angelica by tickling her. She recovers just as Sherry finds her, angry that Leon won't love her after failing to kill the villagers. Sherry uses her Doll Play Magic to make a Wood Doll to attack Lucy. Lucy counters by summoning Taurus who easily defeats it. However, Sherry states that Celestial Spirit Mages such as Lucy are unfortunate to be matched up against her. Suddenly, Taurus attacks Lucy as he is being controlled by Sherry. Lucy tries to close Taurus' gate but is unable to. However, when Sherry insults Fairy Tail's strength, Lucy gets determined and manages to force-close Taurus' gate, much to Sherry' disbelief. Lucy gets to her feet with renewed confidence.

Lucy summons Plue knowing Sherry would take control of him. But since Plue is a weak spirit, its attacks don't harm Lucy at all. Sherry cancels her control over plue and instead creates a Rock Doll to attack. Lucy is forced to run until she reaches the ocean. Knowing Aquarius is her only hope, she summons the water spirit. Predictably, Sherry takes control of it but Aquarius' attack hits both Lucy and Sherry, though the former expected her to do so. Dizzied and wet, Lucy and Sherry get into a slap fight until Lucy manages to win by clotheslining Sherry. Sherry calls for Angelica before losing consciousness who appears and prepares to flatten Lucy who can't move after using too much power. However, she is saved when Erza suddenly appears and knocks it out with a non-fatal sword slash. Lucy is at first glad to see her but remembers that they took an S-Rank mission without permission and it is most likely that Erza was sent to collect them. It is at that point that Happy appears on the scene but quickly tries to escape once he sees Erza. However, he is quickly caught and Erza demands to know where Natsu is. Lucy tries to plead with her due to the trouble the island is in but Erza won't hear of it and threatens Lucy at swordpoint, telling her she won't let the group break the guild rules.

The Tragic Past
The next day, Gray comes to. He finds himself bandaged and in a storage part of the village where the villagers moved to after the initial one was destroyed. A female villager directs him to a tent where his friends are. However upon entering he finds Erza with a tied up Lucy and Happy. She explains she was brought up to speed by Lucy and they found the village thanks to Happy. Gray questions as to where Natsu is but Lucy doesn't know. Erza declares her intention to find Natsu and leave the island but Gray protests. When Erza remains indifferent, Gray vows hes going to finish the job, even when Erza threatens him, and walks off. Erza grudgingly consigns to help and frees Lucy and Happy, though reminds the two they're not off the hook.

Meanwhile, Natsu has returned to the temple, having fallen asleep in the woods that night. Inside, Toby reports to Lyon on Yuka and Sherry's defeat. Zalty reminds Lyon that the Moon Drip ritual is nearly complete and it would be bad if someone stopped it now. He also mentions both Natsu and Erza as his opponents. Lyon, however, remains confident of his abilities. Impressed, Zalty decides to fight as well. The building suddenly starts to tilt to the side. A section of the floor breaks, revealing Natsu underneath it. Zalty surmises that Natsu tilted the ruins from underground to prevent the Moon Drip from shining on the ice and unfreezing Deliora.

Natsu then attacks by blasting himself into Lyon but it turns out to be a ice clone. Lyon creates ice eagles and sends them at Natsu, who counters by blowing out fire to send him to the ground then firing flames from his feet to melt the eagles. Natsu then goes into a handstand and spins around sending fire all around the room before preparing to hit Lyon with a Dragon's Roar. However, Zalty uses his Magic to make Natsu go through the floor causing the blast to miss Lyon. Lyon questions to Zalty what Magic he used but Zalty just tells him he can't lose Lyon just yet. Angered, Lyon uses his Magic to cover most of the room in ice and declares he will take care of Natsu. Natsu climbs back up and asks Lyon why he would go through the trouble of reviving Deloria. When Lyon answers it to surpass Ur, Natsu tells him to just fight her himself. But Lyon mentions she's already dead and blames Gray for it. He tries to hit Natsu with an attack but he blocks it and tells Lyon that he will punish him for causing people to suffer for such a reason.

Meanwhile, Gray, Lucy, Erza and Happy make their way to the temple. Gray tells them of Lyon's intentions but claims that Ur is still alive. At Erza's prompting, Gray begins to recount what happened in the past. Ten years ago, Deloria destroyed Gray's village. Ur and a then young Lyon were passing through and found Gray among the wreckage, still alive and swearing revenge against the monster. Ur took him in and begin training him in the ways of Ice-Make Magic. Gray made it obvious that he is just learning so he can fight Deloria while Lyon's ambition was to surpass Ur. While in a town shopping one day, the three overheard that Deloria is nearby. Gray headed out to fight him despite Ur's protest that he wasn't ready yet. Gray managed to find Deloria but was no match for it. Ur and Lyon eventually managed to reach his location and in the confrontation Lyon was knocked out. Ur managed to shield both boys from a blast from Deloria though lost a leg in the process and replaced it with an ice prosthetic. She told an awakened Gray to take Lyon and leave while she deals with the beast, though she doubts she can stop it.

Lyon awoke upon hearing this and confronted Ur, believing her to be the best Mage he knows. When she stated that there are stronger Mages then her in other continents of the world, he decided to use a spell known as Iced Shell to fight Deloria, attracting the beast to them. Ur, knowing what the spell will do to Lyon if he finishes it, froze him in place. However, she agreed on his statement that it is the only spell that will work on Deloria and used Iced Shell herself, showing Gray that the spell turns the user's body to ice to entrap their target. As the spell completed, Ur asked Gray to tell Lyon she died and encouraged her two pupils to go learn and see the world. Gray could do nothing but call out to her and watch helplessly as her body turned to ice and froze Deloria. Sometime later, Lyon came to and asked what happened to Ur. Gray, respecting his master's final wishes, told Lyon she died who proceeded to blame Gray for her death.

Back in the present, the foursome are confronted by Lyon's followers. Erza, Lucy and Happy stay behind to deal with then while Gray goes on ahead. He manages to break into the temple and the room where Natsu and Lyon are fighting. He tells Natsu that he is going to take care of Lyon as penance for what happened in the past. Gray assumes the stance for Iced Shell, much to Lyon's shock.

The Battle of the Pupils: Gray vs Lyon
Gray demands for Lyon to take his followers and leave the island. When Lyon calls his bluff, Gray starts to activate the spell and tells Lyon its his last chance. Unwavered, Lyon refuses and Gray goes to use the spell. However, Natsu rushes in and punches Gray, citing that it is still his fight. Gray yells he has to end it but Natsu tells him sacrificing himself is the same as running away. Before he can continue, the temple suddenly re-aligns itself. Zalty appears taking credit for doing the deed. Angered, Natsu chases after him, telling Gray to take care of Lyon.

Once alone, the two former pupils talk, with Lyon mentioning he wasn't afraid of Gray's threat due to the fact his followers would simply melt the ice with Moon Drip, rendering Gray's sacrifice moot. Gray tries to reason with Lyon to give up on the quest and telling him that Ur is alive, explaining what Iced Shell does. But Lyon stabs Gray with an ice sword, saying he knew all along but doesn't care.

Meanwhile, Natsu continues to chase Zalty who tries to collapse a ceiling over him. Natsu easily busts through the debris but the rock suddenly repairs the ceiling. Zalty explains that it is a type of Lost Magic. When Natus queries further, he realizes Zalty disappears and continues the chase. Gray recovers from his wound and he punches Lyon into the wall, stating that he is done trying to save him. They decide to fight barehanded, without Magic, but since Gray is injured, Lyon gains the upper hand. However, with pure determination, Gray manages to counter his attacks.

Lyon gets up, and humiliated, uses Magic to attack Gray, who deems this unfair since they agreed to fight barehanded. Lyon states that he doesn’t care, because Deliora will be soon revived. Gray then confesses Natsu’s strength, one they should be afraid of. In the caverns where Deloria is, Zalty prepares the Moon Drip ritual but Natsu manages to find him and attacks. Natsu states they'll stop them but Moon Drip suddenly shines down and pours onto Deloria, melting the ice. It's revealed that Toby is at the top of the temple preforming the ritual. Natsu starts to head off to deal with Toby but is stopped by Zalty who cites he won't let him. Natsu proceeds to attack Zalty, thinking that if he deals with Zalty quickly he can take care of Toby.

Back with Gray and Lyon, the two feel the ruins shaking which the latter comments the ritual is near completion. He starts to attack Gray while telling of the trouble of finding and transporting Deloria and studying how to beat him. Gray calls him out on this commenting how ridiculous it was. He states his disappointment that his senior would use said method. Lyon manages to get Gray to attack an ice clone of himself and sends a Ice Snow Tiger after him from behind. Thinking fast, Gray traps it with an Ice Prison.

Lyon tries to bust out of the prison but finds it won't budge. Gray tells him that one-handed ice molding is unbalanced and he can't use his full power at important times. Gray then makes an ice cannon and fires it at Lyon, blasting him into a wall which finally defeats him. As he falls, Gray tells him that that is what Ur taught them. He the proceeds to freeze his wound but a roar suddenly sounds around the island, signalling Deliora's release. Gray realizes this and thinks of using Iced Shell once more.

Deloria Revives
In the caverns, Deloria has revived. Gray, knowing that roar anywhere, comment theres only one way to stop it now. Meanwhile, Lucy, Erza and Happy spot where the light of the Moon Drip is coming form. Erza states Delpria hasn't completely awoken yet so if they can stop the caster they can stop the ritual. Back with Natsu who continues to fight Zalty. He is hit by his crystal ball but manages to smash it. Only for it to reassemble itself and slam into him once more. Zalty explain that his magic, The Arc of Time, allows him to rewind, stop and fast forward time on objects. He fast forwards the ball and hits Natsu multiple times with Natsu unable to counter. However he notices that the magic doesn't work on living beings.

Zalty confirms it, mentioning it was the reason why he couldn't undo the Ice Shell over Deloria as the ice is a living being. Natsu questions why Zalty joined Lyon's group in the first place as Lyon wants to revive Deloria to defeat it. But Zalty doesn't seem to gain anything from it, raising Natsu's suspicion even more when Zalty mentions he joined recently. Zalty comes clean and states he doesn't believe Lyon can truly defeat the beast. He's only using Lyon to revive Deloria so he can bring it under his control. Natsu becomes angry that all their motives were just for selfish reasons and continues his attack on Zalty. Zalty tries to collapse the ceiling over Natsu. But he blasts through it and straight for Zalty, hitting him with a Salamander's Fist. Meanwhile, Erza finds Toby and knocks him away from the ritual site but its too late. The ritual is complete and Deloria begins to fully awaken. Gray manages to reach the area in time to witness its revival. Natsu states they have to work together to beat it. Lyon, despite being heavily wounded, crawls to the area as well. Still stating he the only one that can beat it. As he get to his feet, he remembers protesting about Ur taking Gray in asking if he wasn't a good enough replacement for her daughter. Ur slapped him for this telling him they could never replace her daughter but they are her beloved pupils.

In the present Lyon prepares to combat Deloria, wanting to surpass Ur. But Lyon knocks him out and once more takes the Ice Shell stance, figuring its the only way to beat it. Lyon threatens to repeat the ritual again if he uses the spell. But before anything can be decided, Natsu steps in front of Gray stating he'll fight it. Telling Gray he stopped him before because he didn't want him to die. These words stop Gray from using the spell as Natsu prepares to battle Deloria who raises his fist to smash Natsu. But before it can bring it down, it suddenly begins to break apart much to the three's astonishment. Lyon then realizes that Deloria was long since dead having been frozen by Ur for ten years, this ice slowly sapping away its life.

With this Lyon realizes hes no match Ur. Natsu compliments Gray on how amazing his teacher is. Realizing Ur's last words ("I'll seal your darkness") Gray begins to cry and thanks her. The ice that was covering Deloria flows into the ocean and Lucy Erza, and Happy rejoin Natsu and Gray. Lucy narrates that Gray still believes that Ur is still alive even though she no longer has a human form and will always watch over her two pupils, hoping they would stop fighting for good.

Mystery Revealed: Completion of the S-Class Mission
Natsu, Happy and Lucy start to celebrate on completing a S-Class mission. But the mood is soured by Erza who tells them its not over yet. They may have stopped Deloria but the curse of the village is still in effect. Gray turns to Lyon who comments he doesn't know as he never interacted with the villagers nor did they interact with him. He also mentions that in the three years they've been doing the ritual, the moon drip never affected him nor his followers and warns that the village may be hiding something. Erza remembers what Toby told her after she tried to stop him, mentioning that that he and Sherry were too victims of Deloria. They followed Lyon hoping he would avenge them. The group head out, but Gray stays behind and imparts to Lyon that he should join a guild to find a new goal. Lyon just tells him to go.

The five soon reach the storage village but find it deserted. One of the villagers directs them back to the original village spot to which, much to the group's surprise, has been rebuilt. Natsu remembers Zalty's powers but wonders why he would do it. They soon meet the village chief again who thinks they were responsible for the restoration of the village. He thanks them and asks once more to destroy the moon. Erza gathers the villagers together and deduces from their explanations that the timing between the appearance of the purple moon and Lyon's doing the Moon Drip ritual for three years seems a bit off. She asks the villagers why they never bothered to investigate themselves. The chief answers that its usually a tradition not to wander away from the village but they did try to go to the temple to see what was going on. However they'd always seem to reappear right back at their village.

From afar, Zalty watches this, complimenting Erza for figuring it out so quickly. Erza switches to The Giants Armor and tells Natsu that its time to destroy the moon. She explains the plan: she throw the spear at the moon, the armor increasing her throwing power, while Natsu will use his fire power to increase the velocity of her spear to reach the moon and destroy it. Lucy, Gray and Happy are doubtful it will work but they watch as the two proceed. The plan goes off without a hitch, but rather then destroy the moon it seem to break a part of the sky and shatters it. Erza explains that the Moon Drip ritual had a side effect of leaving residue magic over the island that crystallized and covered it like a dome hence why it seemed like the moon had turned purple. With the layer gone, the magic wears off but it doesn't seem to change the villagers back to normal. However Erza tells the group that that was their true appearance. Galuna Island is an island of demons. The Moon Drip had affected their memories not their forms, making them believe that they were human.

As Natsu, Lucy, Gray and Happy reel from shock of the news, Erza continues explaining that the villagers have the ability to change into human looking forms and they couldn't go near the temple as it was a holy place and demons can't go near holy light. The sailor from before arrives revealing himself to be a demon too. In fact hes the village's chief son, Bobo, who reveals that he had regained his memory but left the island as he didn't want to scare the villagers in their confused state. When Gray asks how he disappeared from the ship, Bobo reveals that he has wings and can fly apologizing for not telling them sooner. The memory soon comes back to demons and the village chief rejoices along with the rest of the villagers in the air that Bobo is alive. Despite their demonic looks, the fairies comment they look more like angels them demons. As the villagers celebrate with a feast, Zalty talks on his crystal ball to Siegrain who had been watching through it. He asks Zalty why he restored the village to which he answers it was a favor. Siegrain shrugs it off and comments on Fairy Tail's success, adding he hopes they won't get in his way. Zalty agrees as he turns into a woman revealing her to be Ultear, another one of the Magic Council members.

The next day the fairies prepare to pull out. Erza refuses the reward of the villagers on account that they didn't officially take the job. Still the demons insist, so the group walk away with a golden key. The fairies soon set sail with the villagers seeing them off. In a part of the island, Lyon's group watches them. As they start to joke around, Lyon asks Sherry if a guild would be any fun. Meanwhile at the council site; Era, Ultear returns to Siegrain citing her disappointment being unable to retrieve Deloria and apologizes for her failure. Siegrain brushes it off, complimenting her mother's magic though Ultear thinks lowly of her. When asked what she thought of Natsu, Ultear mentions she was impressed as she didn't even use half her power in their fight and that he keeps getting stronger. Siegrian is glad to hear this and tells Natsu to keep getting strong for his (Segrain's) dream.

Meanwhile the fairies arrive back in Magnolia Town. Natsu complains that they went through all that just for a key though Lucy is happy since she got something out of it. When asked, Lucy reveals its the Sagittarius key. Happy suggest selling it but Lucy refuses since the keys are rare. Erza shifts the subject to their punishments which freaks out Natsu, Gray and Happy commenting the master will do "that" to them much to Lucy's horror. As they continue through town, they notice the townspeople talking about something. They soon find out what when they reach their guild hall which has been impaled with metal poles. As shock turns to rage among the group, Erza demands to know what happened.

Anime Differences

 * During the Lucy vs Sherry fight, when Sherry took control of Taurus she ordered him to strip her naked. In the anime, she has Taurus pin Lucy down, closes his eyes and blindly try to punch at Lucy.
 * Also in said fight, in the manga Lucy manages to force Taurus's gate closed through force of will. In the anime, she begs him to remember the time when she made a contract with him which he does (said moment being shown in a flashback) and is enough for him to force his gate closed.
 * Lucy Happy, and Erza's fight against Lyon's followers is shown and its through them they learn that they were victims of Deloria.
 * Lyon originally stabbed Gray with an ice sword in the manga. In the anime he does it by making an ice panther.
 * Gray and Lyon's fight is extended with the two starting off fighting barehanded, promising the other not to use Ice-Make. Lyon breaks the promise when Gray gets the upper hand.
 * It's also during this fight we're shown his first meeting and fight with Natsu
 * When Deloria revives, in the manga he raises his fist to attack Natsu before breaking down. In the anime he actually does punch at Natsu who counters with his own, crumbling afterwards and making it seem like Natsu beat him. Natsu however is quick to note he wasn't the one who did it.