Happy/Synopsis

History
Years ago, when Happy was just an egg, he was taken away from his parents, Lucky and Marl, by the queen of Extalia, Shagotte, to carry out the Dragon Slayer assassination plan. In actuality, sending him to Earth Land, along with all the other Exceed eggs, was done to allow him to escape a future disaster in Edolas.

In X778, Natsu found Happy's egg in the East Forest of Magnolia Town. Natsu then took it back to the guild where he and Lisanna raised it together every day. One night, Elfman took it to keep it warm and the next day when he brought it back, it began to hatch and out popped a kitten with a pair of wings. Happy's first word was "Aye". Natsu gave him the name "Happy" after Lisanna pointed out the change of the atmosphere from anger to happiness after Happy hatched from the egg. Despite everyone else seeing him as a cat, Natsu thought he was a Dragon.

Macao arc
Happy arrives in Hargeon Town with Natsu Dragneel, who is suffering from immense motion sickness. After dealing with Natsu's motion sickness, the two find the man named Salamander, who is actually Bora of Prominence. There, they meet Lucy Heartfilia, a traveling Mage who pays for their meal as thanks for freeing her from an illegal Charm Magic Bora was using.

After finding out that Bora claims to be the Salamander from Fairy Tail, Natsu and Happy leave for the harbor to rescue Lucy and to stop Bora from ruining Fairy Tail's reputation. As Natsu deals with Bora, Happy escapes with Lucy, but he soon runs out of Magic and both plummet into the ocean. Lucy summons her Celestial Spirit, Aquarius, to blast Bora's slave ship back to the shore, after finding her lost Gate Keys. Natsu defeats Bora, and the group escapes after being discovered by the Rune Knights.

Once they arrive at Fairy Tail, Lucy joins the guild. Then, Happy accompanies Natsu to rescue Macao Conbolt, as he has failed to come back from his mission on Mt. Hakobe. Lucy joins them much to Happy's confusion. At the mountain, Natsu and Lucy begin to argue but are interrupted when a Vulcan kidnaps Lucy. Natsu arrives to rescue Lucy but he is thrown down a cliff. However, Happy saves him and watches as Natsu battles and defeats the Vulcan, who turns back into Macao. Later, Macao and the team nearly fall from a cliff again but are saved by Taurus, one of Lucy's Celestial Spirits. After taking care of Macao's injuries, the team heads home, where Macao is finally reunited with his son, Romeo.

Daybreak arc
When Lucy finally finds herself a place to stay, Natsu and Happy pay their very first unannounced visit. After Lucy explains all about Celestial Spirits and shows them how she makes a contract with a spirit, Plue, Natsu and Happy trick Lucy into forming a team with them to destroy the book, Daybreak, in Shirotsume Town.

When they get to Shirotsume Town and meet the client, Kaby Melon, they find out that the reward is no longer 200,000 but 2,000,000 Jewels. After Lucy's failed attempt to infiltrate the mansion as a maid, they break into the mansion, quickly defeating the maids, and find their way into the library, where Natsu finds the Daybreak book. Everlue soon arrives and summons the Vanish Brothers to eliminate the Mages. Lucy realizes that there is some secret inside the book and tells them to stall the enemies while she reads it. Everlue goes after her leaving the Vanish Brothers to deal with Natsu and Happy but Natsu tells Happy to go after Lucy as he will take care of them himself.

Happy arrives to see Everlue binding Lucy and slams Everlue's face with his feet to free her. He then watches as Lucy battles with Everlue and listens as she explains some parts of the secret of the book. Lucy summons her Celestial Spirit, Cancer, Happy is overjoyed and thinks that Cancer is going to say kani (crab) at the end of his sentences but ends up disappointed as he says ebi (shrimp) instead, to the point of asking Lucy to de-summon him. Then, Everlue reveals himself to be a Celestial Spirit Mage as well and summons Virgo, who comes along with Natsu. With their combined forces, the team is able to defeat Everlue and Virgo.

The team then heads back to their client's house where Lucy reveals the secrets of the book. They refuse to take any reward and Natsu figures out that their client is not rich and so the team returns home to Fairy Tail. As the team heads home, Happy and Natsu realize that Lucy is writing her own novel and begin teasing her about it.

Lullaby arc
As Happy, Natsu and Lucy talk about Dark Guilds with Mirajane Strauss, Erza Scarlet returns from her mission, bringing the horn of a Demon she subdued as a souvenir and indirectly causing Natsu to act like Happy. Erza has been looking for Gray and Natsu and asks them for help when she finds them, much to everyone's surprise since Erza is considered the strongest female Mage in Fairy Tail.

The next day at the train station, Gray and Natsu are bickering as usual, and Happy tags along. Lucy introduces herself to Erza and explains that Mirajane wanted her to tag along. Natsu then tells Erza that he will only accompany her if she promises to battle him when they return, to which she agrees. Whilst on the train to their destination, Erza explains that she had overheard something about a sealed Magic called Lullaby and the involvement of a powerful Mage named Erigor. Erigor is part of a Dark Guild called Eisenwald and considering the illegal nature of such a guild, Erza says she plans to march right into the guild and find out what it is up to. Unfortunately, in the process of her elucidation she and the others accidentally leave a motion sick Natsu on the train upon exiting.

Happy helps stop the train by pulling down an emergency stop signal lever at the directive of Erza and goes to follow the train. After they are reunited with Natsu, they learn that Natsu had a confrontation in the train with a member of Eisenwald, Kageyama, who also had a strange kind of flute. Lucy then pipes in at this moment, saying that she had only heard about it in books, but that it might be the "Death Lullaby" flute.

Eisenwald takes over the Oshibana train station and the group forces their way in quickly, encountering Eisenwald and fighting them. Erigor, however, has other plans and flees the scene with Gray and Natsu in his pursuit. Erza and Lucy are left behind to fight the rest of the members with Happy accompanying them. Erza, however, defeats all of them by herself but one of them escapes and Lucy and Happy are tasked to go after him. When Lucy and Happy lose track of the Eisenwald member, Lucy says they should just return to Erza but such a scary prospect is feared by Happy, since Erza had told them to "go after him" forcing the two to continue. The two reconvene with the others just as Kageyama is stabbed by Karacka, a member of his own guild.

Unable to figure out how to escape from the air barrier surrounding the train station which Erigor had cast to trap them in, Happy abruptly reveals that Everlue's Celestial Spirit Virgo had given him her key to give to Lucy. Using Virgo's diver Magic, they escape the train station. Happy helps Natsu catch up to Erigor on a rail bridge by using his maximum speed, but this wears him out. During the fight, Natsu gets enraged by his inability to hit through Erigor's Storm Mail, and Happy notices that Natsu's increased fury affects the temperature of his fire which in turn causes Erigor's wind to flow towards him. So to further nullify Erigor's wind, Happy makes Natsu angrier by saying that he should just leave it to Gray. This infuriates Natsu enough to enable him to destroy Erigor's wind and defeat him.

Erza and company, alongside an injured Kageyama, arrive but Kageyama suddenly makes a break for it with the flute to Clover Town where the Guild Masters are having a meeting, planning to kill them. Chasing after him, they arrive and see Kageyama with Makarov and are about to go to him when they are stopped by guild masters Bob and Goldmine. They see that Makarov has persuaded Kageyama not to use Lullaby's Magic. However, the flute itself starts to talk and transforms into a Demon. Everyone panics but Gray, Erza and Natsu fight the Demon and manage to defeat it, destroying the Guild Masters' Meeting Building in the process, causing the team and Makarov to make a hasty exit.

During Erza and Natsu's promised battle, Happy rescinds his bet on Natsu's victory to Erza's after she pulls out her Flame Empress Armor. However, the conclusion of their fight is not seen as Erza is arrested by the Magic Council for property damage, among other crimes. However, they are both set free the next day.

Galuna Island arc
After Natsu and Erza's return to the guild, Happy steals an S-Class request poster so that he, Natsu and Lucy can complete it. Lucy refuses at first, telling them to leave, until she notices that the reward includes an Ecliptic Zodiac Key and runs after them. However, Gray chases after them at the Master's orders and catches up to them in Hargeon town. Mentioning Erza's wrath at disobeying the rules, Happy tries to make it sound like Natsu and Lucy forced him to steal the request poster. One of the sailors that had refused to sail them to the cursed Galuna Island reverses his rejection when he notices Gray and Natsu fighting with their Magic. Natsu knocks out Gray while he is distracted and drags him onto the boat. After setting sail, the sailor vanishes and although Happy checks to see if he fell into the water, he is nowhere to be found. All that is rendered irrelevant when a large wave hits their boat and washes them ashore onto Galuna Island. Gray then agrees to help and so they go towards the island's village and meet its mayor, Moka, who asks them to destroy the moon.

After deciding that such a task is impossible, the Fairy Tail Mages instead investigate the island's forest and get attacked by a gigantic mouse which they defeat, and in the process they locate an abandoned old temple. Natsu, commenting on the decayed floor, begins to slam it with his foot causing it to crumble and hurtle them downwards into a cavern, also making Happy almost swallow a bone he found. Lucy saves him from choking by pulling it out of his throat. In this cavern they discover the frozen Demon Deliora along with three Mages: Sherry Blendy, Yuka Suzuki and Toby. Gray explains to the others what Deliora is: an immortal Demon that destroyed the Land of Isvan 10 years ago, and that it was sealed by his teacher, Ur, at the risk of her life. The group decides to wait for the moon to come out for them to see its involvement with the frozen Demon. Lucy brings out her Celestial Spirit Lyra to pass the time. Happy wants her to sing a fish song but Lucy tells Lyra to sing anything that she likes. When night arrives, they discover that the moonlight is hitting the Demon via the ritual Moon Drip which would melt the ice. As the team is hiding, Reitei Lyon, Sherry, Yuka and Toby arrive. Reitei Lyon inquires about the Moon Drip ritual and orders the other three to obliterate the village. Enraged by the order given by Reitei Lyon, Natsu jumps out from hiding and attacks alongside Gray. Natsu is frozen, and Gray tells Happy to escape with Lucy which he reluctantly does.

The two arrive back at the village and inform the villagers about the oncoming danger and that it would be a good opportunity to catch them. Happy points out that the three are probably Mages, and although they outnumber them, Mages are difficult to deal with. Lucy, however, thinks of a plan. Lucy summons Virgo to make the preparations for her plan: set a hidden hole in front of the village gate for them to fall in. Happy declares her stupid, saying that it won't work on anyone, although it works on Natsu. To their surprise, the Mages come by air and try to smother the village in a cascade of poison. Happy flies Natsu up into the air to prevent this, with Natsu using his Fire Dragon's Brilliant Flame to scatter the poison away from the villagers. After their plan fails, the three Mages decide to confront their enemies from the ground.

As the Mages prepare to fight, the villagers leave the village, carrying the unconscious Gray. Sherry and Angelica go after them, but Lucy accidentally catches onto Angelica's claw and after tickling the mouse to stop, they end up crashing into the forest. Happy goes to make sure she is okay while Natsu deals with Yuka and Toby. He finds her safe after defeating Sherry but also comes across a not too pleased Erza. His attempt to escape is ruined by Erza who easily captures him, saying that they have betrayed the Master and the rules, and that they are not going to get away with it.

Erza forces Happy to look for the villagers and Gray's location while tied up. She also demands that Gray come back with her to the guild but Gray defiantly resists and leaves her. Angered, she resolves to instead help them and complete the mission first then punish them, freeing Lucy and Happy. They catch up to Gray running towards the temple finding out that Lyon's intentions are to free Deliora and fight him as a means of surpassing Gray and Lyon's mentor, Ur. They discover that the ruins have been tilted so that the moonlight no longer hits Deliora and are then attacked by occultists. Gray runs forward while Erza, Lucy and Happy stay behind to defeat them. They then see that the ruins are re-tilted again to their original position by Zalty. After that, the Fairy Tail Mages go inside the temple and hear the revived Deliora's roar. However, Deliora has been long dead and it crumbles to nothing upon being released.

Back at the newly restored village, (thanks to Zalty's Arc of Time Magic) Erza explains that the villagers' transformation into Demons was false. She clarifies when she gets Natsu to help her "destroy the Moon" but what they really do is to destroy an amnesia-causing barrier around the island that made the villagers think they were humans when they were actually all Demons.

Phantom Lord arc
After returning to the guild, everyone but Lucy is displeased at Erza for not letting them accept the reward of 7 million. Lucy's happiness is due to her receiving the golden Zodiac Key of Sagittarius, which Happy suggests they should sell instead. Erza then reminds them of their punishment, believing it will surely be "that", although what "that" is, is not explained. That's soon put out of their minds when they discover that the guild has been attacked by their longtime rival, Phantom Lord.

The Mages confront Makarov about the damages done by Phantom Lord, but he simply smacks them all on the head and tells them to just ignore it. Happy and company surprise Lucy when they welcome her to her own apartment with Erza telling them they have to stick together in case anyone gets attacked. However, this has already happened to the members of Team Shadow Gear (Levy McGarden, Jet and Droy) and when Makarov discovers this, he announces war against Phantom Lord. Happy attacks Phantom Lord alongside the majority of Fairy Tail, but they are all forced to retreat when Makarov loses his Magic Power due to Aria of the Element 4. Natsu overhears Gajeel Redfox and Aria stating that they had captured Lucy. He forces one of the Phantom Lord members to tell him where Lucy is with Happy rushing after him. Natsu catches Lucy as she deliberately lets herself fall from the prison tower. Natsu and Happy then argue about what they are going to do but stop when Lucy tells them that Phantom Lord attacking Fairy Tail was her fault. Happy and Natsu comfort her and they decide that it's best to retreat to the guild, leaving the indignant Jose Porla.

Back at the guild, Happy and the others are surprised at the revelation of Lucy's history and comfort her while she is depressed. Just then, they feel the guild quaking and rush outside to see what the commotion is: the Phantom Lord guild is on six legs and is literally walking towards their guild. It attacks with its Magical Convergent Cannon - Jupiter but Erza narrowly stops the powerful bullet from obliterating the guild, rendering her incapable of fighting. Jose Porla calls out, demanding that they give Lucy to him but receives an adamant refusal. In response, he tells them to quiver for 15 minutes as Jupiter reloads. Rather than wait to be destroyed, Natsu says that he's going to destroy it before Jupiter is able to fire once more, and so Happy flies him to the mechanically walking guild. Inside, they are confronted by Totomaru, a member of the Element 4 who prevents Natsu from destroying the cannon. Totomaru's abilities cause Natsu some grief, and incite Happy to panic as the time whittles away. Natsu eventually outsmarts Totomaru and destroys the cannon.

In retaliation for the sabotaged cannon, Jose orders the guild to enter its more powerful form: Phantom MK II. Since it's a vehicle, it brings up Natsu's motion sickness and Totomaru seizes the moment to attack with his Rainbow Fire but Gray and Elfman arrive and defeat him. Happy flies outside to see what's going on, and returns telling them that the guild has become a gigantic Mage. They decide to split up, Happy going with Natsu. Natsu says that they should just go and defeat Jose but Happy says that it's an insane idea. Regardless, they are soon faced with the strongest of the Element 4, Aria. Aria easily dominates the fight and nearly renders Natsu's Magic void until Erza arrives and takes over the fight from Natsu. Aria decides to fight seriously and takes off his blindfold, multiplying his Magic Power. However, Erza manages to defeat Aria with one hit. The strain from using Magic causes Erza to collapse. She later regains consciousness in Natsu's arms and tells him to release his power and that he becomes the one to surpass her. Natsu then leaves with Happy to protect the guild and Lucy.

As Gajeel is about to kill Lucy, Natsu arrives and interferes and the two Dragon Slayers begin to fight. Happy frees Lucy and the two watch as the Dragon Slayers battle each other. As Natsu and Gajeel's battle continues, Gajeel eats some metal that replenishes his strength, helping him gain the upper hand. Lucy, trying to find a way for Natsu to eat fire, summons the only spirit she has at the moment: Sagittarius, whose appearance shocks Happy. However, Sagittarius says that he cannot shoot fire and the three continue to watch as Gajeel continues to beat up Natsu and makes him look at the Fairy Tail building collapsing. Natsu decides to continue fighting Gajeel although he doesn't have the strength to fight back.

Happy shouts out that if Natsu was only able to eat fire, he would be able to fight back. Upon hearing Happy's statement, Sagittarius finds a solution to create fire, replenishing Natsu strength and allowing him to defeat Gajeel and destroy the Phantom Lord building. As the Phantom Lord guild crumbles, Happy carries Lucy to safety. Happy and Lucy arrive at the remains of their guild just after a recovered Makarov defeats Jose. When asked where Natsu is, Happy simply says that he has business to attend to.

Taking part in the reconstruction of the guild, Happy, Gray, Natsu and Erza decide to take break to eat when Loke arrives and asks them to give Lucy her keys. When they arrive at Lucy's house, they see that no one is there. Happy finds Lucy's letters to her mother that weren't sent, and Erza finds a note saying "I will go home". They then rush after her. Upon arriving at the Heartfilia mansion, they find Lucy leaving her house and are surprised to hear that Lucy's family owns the place. The team then returns to the guild.

A few days when the guild accepts job requests again, Team Natsu becomes official and decides to take their first mission as an official team. While doing the request, they manage to destroy half a road.

Loke arc
Noticing Lucy worrying over her little amount of money, Mirajane suggests they do a simple acting job at a theater. Happy is given the task of carrying a Dragon suit that Natsu is in and has a week to rehearse. The Mages' show is atrocious and makes little sense, and they also eventually destroy the theater but despite all this they are hailed as a success to the point that they're kept there for another week doing three performances a day.

They go out on another job and chance upon Loke after swiftly completing it. Seeing how they completed it so quickly they decide to stay the night in Hosenka Town. Natsu, Erza and Gray have a pillow fight; Lucy, fearing for her life, instead takes a walk. Happy follows her and tricks her by making her think Plue is human and can talk, but is quickly found out when he uses his signature "Aye" during the trick. Two Mages then begin to flirt with Lucy and paralyze her before she is saved by Loke. The two go back to a bar where Happy falls asleep after eating. His sleep doesn't last long as he is dragged away by the tail by Lucy who leaves off in a storm.

Back at the guild, an agitated Lucy silences Natsu and Gray's bickering, a feat only Erza could do, and Happy asks if she is upset because of his prank; she answers no. Loke's old girlfriends arrive at the guild and demand to know where he is. Mirajane states that Lucy was last with him and they all converge on her, which makes Lucy make a quick escape with Happy. In her apartment she calls out her Celestial Spirit Crux to dig up anything on Loke. Gray suddenly barges in saying that Loke has left Fairy Tail. After hearing this, they all go to look for him.

Tower of Heaven arc
Shocked by the announcement that Loke is a Celestial Spirit, Lucy explains to Natsu, Gray and Happy that he is the Lion spirit which Happy thinks is a grown-up cat. Considering he can no longer spend long periods of time in the human world anymore, Loke gives the four of them, as well as Erza, tickets to a fancy resort. While at the resort's casino, they are attacked by Erza's old friends who kidnap Erza and Happy after attacking Natsu, Lucy, Gray and Juvia.

Happy later wakes up inside the Tower of Heaven in a heavily cat-themed room and has a short conversation with Millianna and Wally before Simon arrives and tells them that Erza has escaped. Natsu manages to arrive at the room but sees no one there before he is suddenly ambushed by Wally and Millianna. The two manage to gain the upper hand in their fight against Natsu, who has a cat head stuck on him. Happy then arrives and saves Natsu from getting shot by Wally by slapping the gunslinger in the face with a cuddly toy. Natsu manages to free himself from Millianna's ropes by tricking her with his secret move: Kitty in Distress and defeats both of them using his Fire Dragon's Wing Strike.

Happy pulls off the mask from Natsu's head and listens as Jellal Fernandes details the rules of The Paradise game. After hearing Jellal, they decide to take a shortcut with Happy carrying Natsu straight to the top. However, this is against the rules and they are both struck back into the tower by Fukuro. Simon is in the same corridor they land in and he attempts to help them escape with his Instant Darkness. Fukuro, however, can see through this and blasts Simon away. Natsu and Fukuro begin to battle each other. No one seems to gain the upper hand but Fukuro makes Natsu ride on one of his rockets, and since it is a vehicle it causes him to get sick. With Natsu disoriented by the ride, Fukuro swoops in and swallows him into his stomach - as Fukuro has the ability to use the Magic of a Mage he has digested. Happy tries to rescue Natsu, but Fukuro uses Natsu's power to easily overpower him. Gray then arrives and takes over the fight, defeating Fukuro and freeing Natsu. During the fight, Gray took a fair amount of damage and Simon asks Happy to take him outside the tower to recover. They flee the island on a boat along with Juvia, Lucy, Wally and Millianna and watch as the weaponized satellite Etherion strikes the tower.

Thinking that Erza and Natsu might have died, they are all highly relieved when the two of them arrive on the shore. They recover in a hotel where Natsu sleeps for three straight days and wakes up after Gray belittles him - but this is only for a moment. He eventually stays awake and they socialize with their previous enemies before sending them off with a fireworks display.

Fighting Festival arc
Upon returning to the guild, they find its reconstruction to be complete and Cana Alberona shows them around. Makarov startles them with the introduction of two new members: Juvia and Gajeel, their previous enemies from the Phantom Lord Guild. After settling down, they sit down for a song from Mirajane; this calm state doesn't last long as the two Dragon Slayers soon cause a large brawl. A reporter comes the next day to write about the guild, ignoring Lucy throughout, and asking Happy why he's blue to which he answers "'cause I'm a cat".

A few days later, Lucy is desperately looking for jobs to pay the rent and she asks Natsu and Happy to help her out. Much to her dismay, Natsu is feeling too sick from eating the Etherion and, along with Happy, goes home to rest. As Lucy finds out, by "home" Natsu meant her home and she gets a large fright when she finds Natsu and Happy in her bed. Happy explains that Natsu's sickly feelings have happened before after he ate Laxus Dreyar's lightning. He goes on to explain about the strongest members in the guild, the strongest probably being Gildarts Clive, and then gives Lucy a flyer about the Magnolia Harvest and the Miss Fairy Tail competition that is being run alongside it which would solve all her money problems. During the competition a week later, Mirajane crushes her own hopes of winning by transforming her face into Happy, much to his pleasure. It continues onwards, showcasing other Fairy Tail girls, until a member of the Thunder God Tribe, Evergreen, appears and turns all the girls to stone. Soon, the other two members, Bickslow and Freed, make their entrance along with Laxus. Laxus proposes a game to find out who is the strongest in Fairy Tail, and Natsu replies with enthusiasm. Laxus is holding the girls as hostages, threatening to smash them if the male Mages don't participate or break the rules. With a time limit of three hours to find and defeat them before the girls crumble to dust, the members of Fairy Tail rush out and the Battle of Fairy Tail begins.

Happy stays behind with Makarov, Natsu and Gajeel, who are unable to escape due to Freed's enchantment. Natsu and Gajeel then try to free Erza by mostly heating her, which works because of her artificial eye that halved the effect of Evergreen's Magic. She goes out and defeats Evergreen thus freeing all the other girls. In reprisal, Laxus activates his Thunder Palace effectively holding the whole town hostage. Happy then accompanies Lucy to find the other two Thunder God Tribe members and Laxus.

As Lucy and Happy are walking, they are suddenly attacked by Bickslow's dolls. Happy is able to push Lucy out of the line of fire. Then they see Bickslow himself and the two sides begin to battle. However, Bickslow seems to have the upper hand, since even if Lucy destroys his dolls, he can control more since they are fighting on top of a toy store. Bickslow then uses his Baryon Formation attack on Lucy but she is saved by Loke, who came through his gate on his own. Loke tells Lucy to stay back, but Lucy tells him that she would fight alongside him causing Happy to tease them and say that they're a cute couple. When Bickslow tries to use his Figure Eyes on them, Happy tells the other two to close their eyes since they may be turned to dolls and controlled by Bickslow, giving him the opening he needs to attack them. With Loke's strategy, Lucy is able to use her whip to bind Bickslow and Loke, using his Regulus Impact, defeats Bickslow.

Laxus is eventually defeated and excommunicated and Happy is seen together with Natsu participating in the Fantasia Parade and along with the other members, raises his hand to tell Laxus that they will always be watching over him. After the Fantasia Parade, Happy is seen, together with Bickslow, teasing Lucy about Loke. When Lucy mentions that she feels like she's being watched, Happy tells her that she has excessive self-consciousness. Lucy ignores them and heads home to prepare for the job.

When Lucy returns, Happy is seen greeting her and asks Natsu what job they are going to take. Gray reveals that it would be to capture the escaped convict Velveno. Happy is surprised when Lucy leaves on her own to head to Acalypha Town. Happy, along with Team Natsu, follows Lucy to the LOVE & LUCKY guild and is surprised to learn that she defeated the Naked Mummy Guild by herself and informs her that because she ran off, they cancelled the mission.

Oración Seis arc
Happy and the other members of Team Natsu assist Lucy in paying the rent by helping her at a restaurant, and when they return to the guild, Mirajane explains about Dark Guilds and their power over the Magical underworld. Makarov then arrives and announces that an alliance of guilds is going to take down one of the strongest three Dark Guilds, Oración Seis. Makarov chooses Happy together with Natsu, Erza, Lucy and Gray to act as the delegates of Fairy Tail.

After meeting all the delegated teams to fight the Dark Guild Oración Seis, Happy falls in love with the Cait Shelter's talking cat Mage Carla. Next, he follows Wendy Marvell and Carla when Oración Seis assaults the Allied Forces, hiding with them as the others are beaten by the Dark Guild members. Brain, the leader of the group, kidnaps Wendy who grabs Happy by accident as she was trying to reach out for Carla. Both are taken by the Oración Seis to their hideout, where Brain explains who Wendy is and what her powers are to Happy and the other Dark Guild members. Brain then presents a coffin to Wendy with the body of a half dead Jellal Fernandes inside and implores her to heal him.

Happy tries to act as the voice of reason, explaining Jellal's past actions at the Tower of Heaven. Though hesitant because of Happy's words, Wendy revives Jellal nonetheless just as Natsu arrives. Jellal quickly knocks down Natsu and turns on Brain before leaving the cave without further incident. Natsu recovers and soon leaves the cave along with Happy, Carla, and Wendy. The group is suddenly knocked out of the sky by Racer, who spots them while fighting Gray, and proceeds to attack them and knock the two cats out. Natsu then grabs them and runs while Gray prevents Racer from going after them. Natsu takes Happy, Carla and Wendy to Erza so that Wendy heals her.

When Erza runs off to find Jellal and Natsu chases her, Happy joins Carla, Hibiki Lates, Lucy and Wendy in following Natsu. They find Natsu stuck on a raft and are confronted by Oración Seis' Angel and her Spirits who transform into Gray and freeze Happy when he attempts to save Natsu from the raft. He is later thawed out, helping a weakened, and probably unconscious, Hibiki out of the water.

Happy later rescues Natsu as he falls from Nirvana's true form, and flies him up to its city where he aides his partner in fighting against the Poison Dragon Slayer Cobra in an aerial battle. Using his heightened hearing against him, Natsu roars so loudly that it overwhelms Cobra and knocks him out. Cobra's poison begins to affect them both and they fall to the ground. However, Cobra quickly recovers and almost strikes a deadly blow on Natsu before Oración Seis' Guild Master Brain intervenes and shoots Cobra. Brain drags Natsu away, planning to make him his puppet. Jura Neekis, Lucy and Gray find Happy who informs them of Brain's plans. Jura, one of the Ten Wizard Saints, stops Brain and effortlessly defeats him. Carla and Wendy arrive just at that moment, Wendy's Sky Dragon Slayer Magic curing them both, and after Happy tells Wendy about Natsu's motion sickness, she casts a spell on him that will temporarily immunize him.

Wendy rushes away, Carla with her, and the rest of them receive a message from an enemy turned ally, Hoteye, via telepathy. Hoteye tells them that the strongest of the Oración Seis, Midnight, is directly below them and that his defeat will stop Nirvana. The Mages rush downwards but at the last moment discover that they fell for a trap set by Brain. The group is saved by Jura's timely intervention who is heavily damaged by the ambush and rendered unconscious. As they try to make sure he's okay, Brain's staff, Klodoa, laments about Brain's pathetic power and that he should just defeat them himself before being captured by Natsu and slammed around. He frees himself from Natsu's grip and reveals the Dark Guild's plan to them: destroy the Cait Shelter Guild so Nirvana can never be resealed.

Klodoa begins to bash them, but abruptly stops when he feels that the Six Demons have all been defeated and that this will herald the arrival of Brain's split personality, the vastly powerful and bellicose Zero. As forecasted, Zero arrives and effortlessly defeats the team. Nirvana then arrives at Cait Shelter and Zero orders it to attack. The powerful blast from Nirvana is however stopped with another strike when the combined efforts of the other alliance members, who manage to get the Magical Bomber Ship Christina, which was shot down earlier by Oración Seis, is repaired to be up and working again. Hibiki, piloting the ship, telepathically gives them the details on how to stop Nirvana: destroy the six Lacrima crystals in Nirvana's legs that serve as its power source simultaneously. Zero interrupts, using telepathy himself, saying that their plan is futile as he stands at one of the crystals and will prevent anyone from destroying it. The other alliance members desperately call on Natsu, Gray, Lucy and Happy to get up and they defiantly comply.

On the map that Hibiki has downloaded into their head, the group decides on which Lacrima each member is going to go to. After choosing, Happy reminds them that if they find Zero, they have to take him down themselves and that they have no backup. He then accompanies Lucy to destroy her appointed Lacrima crystal, but is confused when Lucy reveals to him that she has no more power left. He later appears relieved as Gemini arrives to help them out. After the defeat of Zero by Natsu and the crumbling of Nirvana, Happy, along with Natsu and the others, tries to fight off the Rune Knights that plan to imprison Jellal, but fails as he is stepped on. After Cait Shelter is revealed to be nothing more than an illusion, he goes back home to Fairy Tail along with Wendy and Carla.

Daphne arc
Note: Events in this arc occur only in the anime and do not constitute canon material.

Edolas arc
When Gildarts Clive arrives and tells Natsu to visit him in his house, Happy accompanies Natsu, and is shocked to hear that Gildarts faced a Dragon during his quest. Gildarts then tells Happy to continue supporting Natsu. A few days later, he is seen wrapping and presenting a fish to Carla, but is confused and sad when she coldly rejects him. He follows her, and she tells him that he cannot protect Natsu, as he doesn't even know what he is. As he is left wondering about what Carla said, Happy crosses paths with Gajeel, who he then asks why his face has so many scratches.

After Anima swallows Fairy Tail and the whole of Magnolia Town, Happy is able to find Wendy, Natsu and Carla gathered together. He then listens in shock as Carla reveals that both she and Happy are beings from a parallel world called Edolas, and that they are the reason to why the whole town disappeared. He then listens as Carla goes in detail about the history of Edolas, and also about how they received a secret mission from the King of Edolas. After learning that they may be able to save the Fairy Tail members, Happy flies Natsu into Edolas using his wings, alongside Carla and Wendy. The Edolas version of Lucy then manages to catch the group sneaking around their guild, and Happy is both shocked and scared by her new appearance, even referring to her as 'Lucy-san'.

Lucy and the other Edolas Fairy Tail members quickly welcome Natsu and the gang. Later, Happy sets his eyes upon Edolas Lisanna and, like Natsu, sheds a huge amount of tears upon seeing her again. Before he can hug her, he gets kicked along with Natsu by Lucy Ashley and then asks how Lisanna could be alive in this realm. Carla later tells him that this is Edolas and that everyone here is not their friends, but different people. He later teleports along with the guild to a safe location when the Fairy Hunter attacks, and is shocked to learn that the Fairy Hunter is Erza Knightwalker, Erza Scarlet's Edolas counterpart.

The group, along with Lucy Ashley, travels to Louen City and finds Earth Land Lucy, who apparently still has access to her Magic though the others do not. The Earth Land Magic users see that the Lacrima crystal that contains the essence and Magic of the rest of Earth Land Fairy Tail is under heavy guard in the Royal City and there is nothing they can do. Carla puts forward a plan where the Mages would travel through an abandoned coal mine to the royal bed chamber and use Gemini to copy the King's knowledge when it comes to the giant Lacrima and releasing their friends. However, they are ambushed and captured by Erza Knightwalker. Then, much to everyone's shock, all of the soldiers bow to Happy and Carla and call them the Exceed, congratulating them on leading the Mages into the trap.

Carla and Happy meet up with other Exceeds and learn of their true mission. They were originally sent to kill Dragon Slayers but at the last minute, their mission was changed to capturing the Dragon Slayers for their unique Magic Power. Carla realizes that she completed her mission even though she did not intentionally want to and she breaks down in tears for what she has done. Carla is about to break down, when Happy stands up for her despite not remembering his mission or who he really is. He explains that they are nobody's puppets and that they are still Mages of Fairy Tail. This gives her a glimmer of hope and even makes her call Happy by his name for the first time instead of calling him "Male Cat".

Happy grabs Carla and decides that they will rescue their friends themselves, causing a rebellion against the kingdom and the guards try to capture them as they are escaping. They hide in a wooden cart to escape the guards but the cart rolls downhill and they end up on a field where they meet an unnamed Exceed, who recognizes them as rebels but still decides to shelter them, telling them to hide in his house where he resides with his wife. As soon as things calm down all four of them have a conversation about bonds and friends.

After the conversation ends, Happy and Carla make up their minds to save Natsu, Wendy, and the guild. With their confidence restored in the friendships they hold with Natsu, Wendy, and the rest of the guild, they are finally able to fly into the sky using their Magic. After returning to Edolas, they manage to save Lucy from the hands of Erza Knightwalker. Carla tries to exploit her lack of information and presents herself as Extalia's princess and a daughter of Queen Shagotte. She then tricks Knightwalker into revealing the location of Natsu and Wendy to her, then tries to trick her into releasing them, which almost succeeds. Unfortunately, the rest of the royal guard arrives, and Pantherlily informs Knightwalker that Carla and Happy are the "fallen" Exceeds, thus traitors. All three attempt to escape. Carla asks Lucy if she's angry at them. Lucy is very surprised by this question and says that she really doesn't know what she should be angry about. She then says that she is surprised by the fact that Carla is a princess. When Carla reveals that it was bluff, Happy comments on how it was so like her to do so.

The peace lasts for a short while though, as Extalia troops from the sky and Magic Militia from the ground surround them. Luckily, Faust decides that it is now a perfect moment to execute code ETD, which turns the Extalia troops into a giant Lacrima. Shocked, Happy and Carla immediately fly away with Lucy to the West Tower where Wendy and Natsu are being held. Unfortunately, they are led into yet another ambush by Erza Knightwalker and her soldiers. As Carla pleads with her to let Wendy go, Knightwalker declares that they do not need to worry as they are about to die. As she prepares to execute Carla, Happy steps in the front and tells Erza that she would have to go through him first. As Edolas Erza raises her weapon to strike, her soldiers are suddenly blown away, and Happy is thunderstruck as it is revealed that their saviors are none other than Earth Land Erza and Gray.

While Earth Land Erza holds off Edolas Erza, Happy and the others head towards where Natsu and Wendy are. Along the way, Happy learns of Gajeel arriving in Edolas and how his Dragon Slayer Magic released Gray and Erza from the Lacrima. Realizing that he can do the same to the other trapped guild members and townspeople, he flies towards where Gajeel is to tell him where they currently are. As he is leaving, Lucy is worried about him leaving on his own, but Carla has faith in him and reassures her that he will be fine so she doesn't have to worry. Happy finds Gajeel and takes him to the huge Lacrima, but before Gajeel can free the guild, he encounters Pantherlily. Happy asks why an Exceed would side with the Royal Army whilst Pantherlily states he no longer sees Extalia as his home. Gajeel has taken a liking to Pantherlily and decides to make Pantherlily his cat partner but wants to see who is stronger between the two, which greatly shocks Happy.

Gajeel and Pantherlily stop fighting when the Dragon Chain Cannon hits the island they're on. Happy wonders how someone could do something like destroy an entire race just for Magic. Happy helps in the attempt to stop the Lacrima from hitting Extalia with the rest of Earth Land Fairy Tail and Coco. Happy is shocked when Carla and Nadi also come to help against the struggle. Happy then looks behind him and sees a bunch of Exceeds coming to help along with Wendy. Just when the Lacrima is about to hit, a last minute effort manages to stop it, but right after the island disappears. Everyone looks on in shock at the disappeared Lacrima that is Fairy Tail. Mystogan then shows up stating he sent it back to Earth Land safely. When Edolas reinforcements arrive, along with Faust and the Dorma Anim, Happy states how it looks like a Dragon. Happy, along with Carla, lands Natsu and Wendy to fight it. Natsu tells them to go protect the Exceeds, as he, Gajeel and Wendy take care of Faust and Dorma Anim. While riding on a Legion, Erza Knightwalker shows up and blasts away Coco's own Legion sending it to the ground. Happy grabs onto Lucy, and Carla grabs onto Gray and Coco as they see Erza Scarlet fight Erza Knightwalker.

Lucy, Coco, Gray, Happy, and Carla fall into a forest and Lucy gets upset for Happy dropping her, but he says that she is heavy. Edolas troops show up and spot Carla and Happy and aim to turn them into Lacrima since they are the only two left, but Gray attacks and protects them. Lucy summons Loke while Carla and Happy dodge beams of Magic, but Carla jumps in front of one to protect Happy. They start to be overwhelmed when even more reinforcements arrive, but then Edolas Fairy Tail comes to the rescue and helps them fight. Happy exclaims that their feelings have helped move this world. When Mystogan starts taking all the Magic away from Edolas, the troops lose their Magic weapons and retreat. Everyone panics including Edolas Fairy Tail, and Carla and Happy look around at all the chaos that has ensued. Finally when all the Magic is gone, all the Earth Land Fairy Tail members start being sucked into the Anima as well returning back to their home. They all say goodbye to Edolas Fairy Tail and Coco. Happy cries realizing he will never see them again.

After returning back to Earth Land, Happy is surprised by the Exceeds' arrival to the said place and tries to calm down Carla, who wants to send them back to Edolas. The Exceed Elders and Shagotte explain the truth about the "mission", including Carla's ability to foresee the future, and false interpretation as her mission to eliminate the Dragon Slayers.

Happy notices that Carla and Queen Shagotte are very alike (in fact, they are daughter and mother) and he and Lucky subconsciously mimic each other. Marl tells Happy that he can visit them anytime and Happy says that for some reason he really likes the two Exceeds' smell, which makes them cry and his father yell at him, as unbeknownst to Happy, they are his parents. Then Happy sees Pantherlily's new form and is shocked to see Lisanna hugging him. Lisanna is revealed to be actually Earth Land Lisanna and Happy and Natsu are filled with joy. With this, he helps her back to her siblings for a tearful reunion.

Tenrou Island arc
After the Mages' return, Happy celebrates with the other guild members. He then begins to converse with Carla and Pantherlily, and watches as the guild erupts into another brawl.

Days later, Happy helps Natsu complete various jobs in rapid succession. The day after, at the S-Class Mage Promotion Trial Ceremony, he congratulates Natsu for being chosen to participate in the trial. Moments later, Natsu picks him to be his trial partner. After remarks from Elfman and Gray, Happy declares that he is going to make Natsu an S-Class Mage for sure, and the two of them rush to train themselves. That night, as Happy calls Natsu for dinner, Natsu is brimming with confidence that he will be an S-Class Mage. Happy looks at him with admiration.

As the participants head towards the island, Happy lies exhausted from the intense heat. Shortly after, Makarov arrives to explain the rules of the first trial. After hearing and realizing that the boat stopped, Natsu and Happy try to fly ahead towards the island first. However, Freed is revealed to have used a rune on the boat which prevents everyone from leaving for 5 minutes. However, Levy and Evergreen are able to rewrite the rune, so only 5 teams remain trapped. As soon as the rune is released, Natsu and Happy fly to the island and Natsu chooses path E, out of the remaining 4, since he believes E to stand for Erza and he wants to fight her, much to Happy's confusion.

Happy and Natsu then go down the E path, as Natsu calls out for Erza. Happy remains unsure if Erza really is there. Natsu and Happy realize someone is there once they see a foot come out from the darkness, and the person is revealed to be Gildarts. Gildarts says that Natsu got bad luck this round and he hates holding back. Happy then says that the competition for Natsu is over, due to remembering how strong Gildarts is. Happy remains a spectator for the battle, and does not participate much. He cries when he thinks that Gildarts has destroyed Natsu with his Magic, and is shocked when it starts to rain Mini-Natsus and even more when Natsu's confidence multiplies as he chooses to continue fighting Gildarts.

Natsu uses all of his known techniques; however, he only makes Gildarts move a little from his original place. Gildarts, impressed with Natsu, decides to let him pass, but Natsu won't hear it, saying that if he wants to become an S-Class Mage, he needs to beat him. Gildarts knowing what Natsu was going to say, unleashes his full power, saying that there is something that Natsu needs to acquire before becoming number one. Natsu stares with awe at Gildarts' power and, knowing that he no longer stands a chance at winning, kneels down and gives up. However, Gildarts lets him pass, saying that it is necessary for an S-Class Mage to know their weakness, and warns Natsu of the dangerous tasks ahead. Gildarts then leaves, saying that Natsu will have a chance to fight him again, but for now, he needs to be an S-Class Mage. Happy and Natsu arrive at the winners' circle where Makarov briefs everyone about the others' fate and about the second part of the exam.

When the second exam starts, Natsu and Happy come across Evergreen, Elfman and an Unknown Mage. When the Mage's power is activated, Natsu saves Evergreen and Elfman and asks the Mage who he is. Happy, Natsu, Evergreen and Elfman then notice that the trees have all withered and realize that it is because of that Mage. The Mage seems to know who Natsu is, however, an angry Natsu charges in and punches him in the face. The Mage seems to be unscathed but begins to cry. Suddenly, his Magic activates but everyone is saved by the muffler that Igneel gave Natsu, making Happy wonder whether Igneel gave the muffler for Natsu's protection. After the Mage disappears, Natsu sees his muffler turn black and complains about it being coordinated with his clothes, making Elfman and Evergreen think that he cares about fashion. Natsu and Elfman then remember about the exam and decide to continue. Happy thinks that the Mage had no bad intentions. Natsu and Happy continue their search for Mavis Vermilion's grave when they see the signal that means enemies are attacking. Natsu wonders whether it could be related to the Mage they fought. Natsu then says that they will strike back at anyone picking a fight with Fairy Tail.

Natsu and Happy arrive at the site of Wendy, Mest, Lily and Carla's battle against Azuma, though Azuma has already vacated the scene. Natsu interrogates Mest but is stopped when Wendy points out that he is from the council. Carla begins explaining who their enemy is when they notice Caprico with his Jet Pack using his Magic to send down Grimoire Heart Guild members. When the Grimoire Heart guild arrives on Tenrou Island, Happy helps Natsu fight the enemies. After Zancrow arrives to fight Natsu, and burns his allies to death, Happy goes over to the wounded Carla, Pantherlily, and Wendy. When Zancrow hits Natsu with his fire, and after Natsu realizes he can't eat it, Happy shouts for Natsu in a worried way with disbelief. Zancrow then burns Wendy and the cats for their annoying commentary.

After Natsu and Makarov's battle with Zancrow is concluded, Happy is seen with the rest of the cats and Wendy worrying over Natsu and Makarov's condition. Happy explains how the scarf got turned black, which makes Pantherlily wonder if that guy really is Zeref. When Natsu wakes up, Happy is delighted. He tells Natsu that Wendy fixed up his muffler and his clothes. However, Natsu picks up the familiar scent of a former enemy that he fought on Galuna Island and walks off, despite the protests.

Happy follows Natsu as the latters continue to follow the scent. With a slip on a leaf, Natsu slides down a slide, landing in front of Zeref. Suddenly, the ground below Natsu quickly births a tree. Sitting on the top of the tree is Ultear, and Natsu notices that she's the one with the scent. Ultear then wonders if he is also after Zeref, to which Natsu replied that he isn't, and will not forgive any of them. The two of them start to fight, but with Ultear being serious, Natsu is forced onto the defensive side of the battle.

As Natsu and Ultear continue their battle, Lucy and Kain Hikaru arrive. When Natsu asks Lucy what she is doing there, Happy remarks that Lucy was sent flying over in their direction rather ungracefully, to which Lucy asks if there is a "cool" way to be sent flying. Happy then states that now they have two opponents, and Natsu says that they had added an extra member themselves. He then said that he would put the S-Class exam on hold and that they should form a team. Lucy says that it is nostalgic while Happy comments that it makes him think of when they first met, and Natsu remarks that he's all fired up. Happy throws his hands in the air as Lucy and Natsu high-five and they both say that they should defeat them.

After Kain agrees to handle Natsu and Lucy by himself and Ultear takes her leave, the four way battle between Natsu, Lucy, Happy, and Kain begins. When Kain believes victory is at hand, Happy steals his doll. Kain knocks Happy with one blow and tries to recover his doll but Natsu takes it instead, trying to counterattack, however Kain acts faster and delivers a powerful blow to Natsu which ends with him crashing and half-buried by rocks. Unable to move on his own, Lucy tries to summon Virgo, but has no more power left and is subsequently captured and tortured by Kain. Natsu tells Lucy to run, but she refuses, prompting Kain to kill her by crushing her head. Before he can do it, Natsu uses the doll to manipulate Lucy starting a counterattack in which Kain takes a brutal beating. Further boosting Lucy with his own Dragon Slayer Magic, Natsu gives Happy the doll so that he can use the speed to further power up Lucy with his speed. Happy then grabs the doll and flies around using max speed which makes the flames on Lucy stronger. He then makes Lucy deliver Kain a brutal kick to the face, finally defeating him.

Happy then he asks Natsu to break the boulders he is stuck in with his flames, to which Natsu responds that that is a good idea. Once Natsu is free they look over and notice that Zeref is no longer there, and Natsu remarks that something is getting in the way of his scent. Lucy then raises her leg and says she has to look for Cana, and Natsu asks her why she is raising her leg. She then begins to chase after Happy who has taken Mr. Cursey from Kain and started using it to control her, but Natsu says that it is time to take a nap. Lucy then says, while bending Happy with Mr. Cursey after plucking one of his hairs, that they can't because she's worried about Cana and they must search for Zeref.

They then begin to speak on Grimoire Heart's goal and Natsu says that since they laid a finger on Makarov, they won't leave the island. Lucy then realizes that they must have a ship somewhere anchored on the island and asks Happy to go search for it, but he replies that he is out of Magic Power. Natsu then states that they should get back to where Makarov is resting and that they would have Lily or Carla take care of it.

Happy along with Lucy and Natsu arrives at the site that Makarov is resting at, where Mest is also located He tells Lucy that his name is in fact Doranbolt. Wendy begins to ask him something but Doranbolt tells her not to worry because he came there to help them, which surprises Happy and Carla. He then says that with his powers, everyone can leave the island, but Happy and the others refuse. Despite the Council member's attempts to convince them otherwise they all decide to stay on the island and fight.

Happy, along with Wendy, Lucy, and Natsu tries to convince Doranbolt to stall the Council while they defeat Grimoire Heart. Later Happy, Wendy, Natsu, Lucy, and Carla, are beaten in one blow by Grimoire Heart member Bluenote Stinger. Happy, lying on the ground and unable to get up, is shocked at the strength of the Grimoire Heart member.

Happy is surprised when Cana arrives and fights Bluenote. He watches as Cana is overpowered by Bluenote and Gildarts arrives just in time to save them, much to everyone's relief and delight. After Gildarts' arrival, he orders everyone to get away, and the force from Gildarts and Bluenote clashing sends Happy and the others flying. After realizing that they'd only be in Gildarts' way, Happy and the others leave. Later, when Azuma destroys the Great Tenrou Tree, Happy collapses along with the other members of the Fairy Tail Guild.

After Erza defeats Azuma, Happy and the others return to the camp and discover their injured friends. Wendy tries to heal them using her Magic but Carla and Happy disagree with the idea since she already exhausted her Magic Power and suggest that she rests for a while before healing their remaining injured friends.

After sitting around at the camp for a while and deciding that they should split up to an attack team and a defense team, Natsu is ready to go. Happy convinces Lucy to come with them to defeat Hades. The attack team being that of Natsu, Wendy, Lucy, Carla, and Pantherlily, later meets up with Erza and Gray on their way to Grimoire Heart's airship. Everyone then stands there and faces Hades.

After Hades goes into his airship, Natsu tells the Exceeds to search around the airship for a power source to make sure the ship will not take off mid-battle. As they crawl through the vents, Happy looks down below and sees something, claiming that "it is alive", leaving the others in shock. After the Exceeds drop down, Grimoire Heart members spot them, so Pantherlily holds them off, as he tells Happy and Carla to stop the power source somehow, thus they start pulling chains and hitting the machine to stop it. Carla and Happy successfully destroy the power source just in time, so Hades' Magic stops working which enables Natsu to defeat him. The power source turns out to be Hades' real heart, which was the source of his Magic, and of his longevity.

After the battle ends, Happy and Carla run out of the airship after being chased by Grimoire Heart members. They all flee once they see Makarov, the Thunder God Tribe, Gajeel, Levy, Mirajane, Elfman, Cana and Lisanna arrive. Everyone then returns to camp. Happy and Carla sit and congratulate each other on a job well done. Happy later goes fishing with Natsu and Gildarts, but they are interrupted by Lucy and Cana. After Lucy gets Cana and Gildarts alone, Lucy, Happy, and Natsu watch as Cana reveals to Gildarts that she is his daughter, which shocks Happy and Natsu.

Everything is interrupted when the powerful Black Dragon, Acnologia, lands on the island and starts its rampage. Makarov uses his Titan and takes the Dragon head on, telling the rest of Fairy Tail to leave, and to not disobey his final order. Happy runs next to Natsu with the rest of the guild, crying. However, they all return to help Makarov defeat Acnologia. The Dragon eventually takes to the sky though, and prepares its final attack to destroy the island. All of Fairy Tail holds hands as Tenrou Island is destroyed by Acnologia's Dragon Breath.

X791 arc
Seven years after Acnologia unleashed his Dragon Roar to destroy Tenrou Island, Happy and the rest of the Team Tenrou is found by members of their guild. It is revealed that Mavis Vermilion converted the bond and friendship of the Fairy Tail members in order to save them by using Fairy Sphere. However, due to the nature of the Magic, Happy and the other members of Fairy Tail were trapped inside the sphere, frozen in time. With the help of the Trimens, their friends discovered the island and rescued Happy and the others. They then sail back to Magnolia and are welcomed back by Romeo.

The return of the missing members starts a celebration that lasts for the whole night. During the party, Romeo reveals his Magic to Natsu and Happy who recognize it to be the same as Totomaru's. Happy then asks Pantherlily about the Exceeds and wonders if they are worried about them. Pantherlily tells him not to worry, as Exceeds perceive time differently. After the party, Natsu and Happy return home and realize they have no savings or food. They follow Lucy to the Love & Lucky Guild to see her father, in hopes that he will lend them some money. However, the trio is informed that he died a month ago before they came back.

The trio then returns to Magnolia, Natsu and Happy feeling miserable for Lucy. Upon reaching Magnolia, the trio separates. Natsu and Happy head back to the guild and take a job. The duo then heads towards Lucy's apartment in order to ask her to accompany them but finds themselves face to face with Lucy's Landlady. She asks the two to take it easy on Lucy and reveals that payment for Lucy's rent arrived that morning. Hearing this, Natsu and Happy turn to go on their job, saying goodbye to Lucy and promising to bring her back some gifts. Lucy, however, tells the two to wait for her and the trio leaves to do their job.

Key of the Starry Sky arc
Note: Events in this arc occur only in the anime and do not constitute canon material.

Grand Magic Games arc
After watching Natsu have a hard victory against Max, Happy, Natsu, Lucy, Gray, Wendy and Carla head towards Porlyusica's house in order to ask her for a way to raise their Magic Power. However, Porlyusica refuses to talk to them and tells them to head back home. During their way back to Magnolia, Wendy voices out that Porlyusica has the same smell and voice as Grandeeney. Hearing Wendy's words, the group tries to contemplate the meaning behind the mystery. As the group talks, Porlyusica appears behind them and reveals that she is the Edolas version of Grandeeney who came to Earth Land by accident. She then gives Wendy a stack of papers that gives her instructions on how to use two different Sky Dragon Slayer spells.

The group then returns to their guild and is informed by Romeo about the Grand Magic Games. Hearing that the winner of the tournament will be crowned the number one guild in Fiore, the group immediately agrees to take part in it, forcing the opposing older members to agree. With three months left before the tournament starts, the Fairy Tail members separate into groups in order to go train and raise their Magic Power.

During their training, the group of Team Natsu, Juvia, Levy, Wendy and Carla are visited by Virgo who asks them to help her save the Celestial Spirit World since it is in the crisis of destruction. The group immediately agrees to help and goes to the Celestial Spirit World. Arriving at the gates of the world, the group finds themselves face to face with the Celestial Spirit King who reveals that the crisis was merely a ruse for them to have a reason to invite them for a welcome back party. After a day of partying, the group returns to the human world, only to find out that one day at the Celestial Spirit World equals to three months in the human world, leaving them with only five days until the tournament.

While the group laments on the fact that they spent three months partying in the Celestial Spirit World, a pigeon arrives with an invitation, asking the group to head to the West Woods. The group follows the invitation and finds themselves face to face with Jellal, Ultear, and Meredy. The three Mages reveal that they saved Jellal from prison and formed the independent guild, Crime Sorcière, with the goal of eradicating all evil done by Dark Guilds and Zeref. The trio then asks the group for a favor concerning the tournament and proposes a way to raise their Magic Power via Ultear's Arc of Time.

When Ultear begins the process on Natsu, Happy is worried about Natsu because of the amount of pain he is in. Later that night, when Jellal, Ultear, and Meredy leave, Happy draws a broken heart in the sand with a stick, mocking Erza's relationship with Jellal, for which she kicks him and sends him flying.

On the last day before the starting of the Grand Magic Games, Happy arrives in Crocus alongside the rest of Team Natsu. He, Natsu and Lucy later go to see the city, where they meet Sabertooth's Twin Dragons, Sting and Rogue. Happy gets a surprise when he sees Lector and Frosch, and the two begin to mock him. Returning to the lodging, Happy expresses his grudge against them, swearing revenge.

Suddenly, the Pumpkin Man appears, much to Happy's surprise, announcing the Preliminary Event of Grand Magic Games. However, due to Wendy's absence, Elfman replaces her, and the Team heads toward the Sky Labyrinth while Natsu tells Happy and Lisanna to search for Wendy and Carla, which Happy replies with a cheer. Searching in Crocus' streets, they find Wendy's bag in the ground.

Found in the bushes, Wendy and Carla are brought to Domus Flau's emergency room, which makes Happy extremely worried about Carla. Happy then goes to the stadium's grandstand alongside the other Fairy Tail's members to cheer for their friends. Suddenly, Mavis Vermilion appears near them, shocking the entire guild. Pantherlily joins them too after the entrance of Team Fairy Tail B, stating that Gajeel got very strong, to which Happy replies that Natsu did too. Happy stands alongside Pantherlily for the rest of the Games.

During the first Event of the Games, Hidden, that Gray takes part in, he demonstrates a new form of using Ice-Make, surprising Jet and Droy, then Happy states that it is a result of hard training. Near to the end of the event, Rufus uses Memory-Make to hit the opponents, which amazes Happy. The event then ends, with Fairy Tail's teams in the bottom of the ranking.

For the Battle Portion of the first day, Lucy Heartfilia and Flare Corona are chosen to the first battle. Happy, alongside the other Fairy Tail's members, is too focused on the battle and doesn't notice Flare using her Magic to take Asuka Connell as a hostage. Blackmailing Lucy, Flare starts harming her, surprising the audience, but Natsu figures out Flare's plan and neutralizes it. This allows Lucy to turn the tables, and start casting Urano Metria, but the spell is suddenly erased, resulting in Lucy's defeat, much to Happy's anger.

The second match of the first day was quick, resulting in Ren Akatsuki's win against Araña Webb. Before the third match, Happy wonders if one of the selected, Orga Nanagear, is strong like Rufus. The answer comes shortly after the beginning of the battle, as Orga defeats Warcry with a single blow, scaring Happy. The final battle is won by Jura Neekis against "Mystogan", which keeps the two Fairy Tail Teams in the bottom of the ranking. During the rest of the First Day, Happy alongside the guild members commemorates their "crushing defeat" at a bar. Despite this, the guild members' mood is good, as Happy cheers for Natsu when he states that he'll win in the next day.

The Second Day's event, Chariot, involves running on chariots, which leads the Dragon Slayers Natsu, Gajeel and Sting to get extremely nauseated. Happy comically says that Gajeel and Sting are "taking Natsu's character", as Natsu was the only character so far known to have motion sickness. When Sting asks why Fairy Tail entered the Games, Natsu replies that they're doing it for their comrades, which deeply moves Happy and the other guild members

In the second battle of the second day, Elfman Strauss vs. Bacchus Groh, Happy alongside the other Fairy Tail members is initially amazed by Bacchus' skills. The battle gets more and more fierce, but it ends up with Elfman's victory, much to the joy of Fairy Tail. However, Elfman is too injured to continue, being replaced by a recovered Wendy. Accompanying Wendy, Carla goes to the grandstand, much to Happy's excitement and happiness. However, when Carla starts to cheer for Mirajane that is battling Jenny Realight, Happy and Lily feel embarrassed due to the "battle" actually being a beauty contest. Mirajane wins the battle when it comes to fighting, giving Fairy Tail a perfect Battle Portion in the second day, cheering the whole guild.

In the last battle, Kagura vs. Yukino, Pisces is summoned by the Celestial Spirit Mage of Sabertooth, Yukino Aguria, exciting and making the blue Exceed hungry. The battle ends with an astounding victory of the Mermaid Heel's master swordswoman Kagura Mikazuchi, amazing the audience.

At the end of the second day, Happy goes back to the lodging alongside his teammates, except for Erza and Gray. When they arrive, they see Yukino waiting for them at the door of the lodging. Inside it, Yukino explains that she wants to give Lucy her Libra's and Pisces' Gold Keys, saying that soon the 12 Golden Keys will be gathered, but Lucy declines the offer. Happy and Natsu then see that despite being a member of Sabertooth, Yukino is a good girl, and decide to apologize for thinking that she could be a bad person. This deeply moves Yukino, who then reveals how her excommunication was humiliating and that it happened for her losing only one battle. Happy and Natsu are shocked to hear that, and Natsu, enraged, decides to beat up Sabertooth's Master, Jiemma, and make him leave the guild as well. When Minerva comes to stop Natsu and Jiemma's fight, she holds Happy captive, telling Natsu that she won't hurt Happy if he lets her save some face. Happy apologizes to Natsu for being captured, but Natsu tells him that it's alright, and the two decide to leave.

When the third day of Grand Magic Games begins, Happy, along with the other Fairy Tail Mages, listens to Mato as he explains the event, Pandemonium. He also comments on the event's mechanics. After Erza battles all 100 monsters and successfully defeats them all, Happy, with the other Exceeds, cheers in happiness. When the MPF is announced, Happy sees Obra and notes that he's the one who attacked Wendy and Carla. As the battle portion begins and Laxus is chosen to fight against "Alexei", Happy is shocked as Alexei overwhelms Laxus. However, when the Illusion Magic has been dispelled and they see that Laxus had defeated all the members of Team Raven Tail, Happy and the other Fairy Tail members cheer in joy.

Later that day, Wendy is called forward to represent Team Fairy Tail A in a fight against Lamia Scale's Chelia Blendy. When Wendy unleashes Shattering Light: Sky Drill against her opponent, most of the crowd is shocked by the strength and advanced level of the spell, however Happy simply crosses his arms and smiles boastfully, stating that Wendy is amazing.

In the course of battle, as Wendy deflects Chelia's Heavenly Gathering of Clouds, Happy is seen next to Carla, who explains Wendy's ability to heal fatigue. Lyon continues saying that as Wendy healed her opponent's physical strength, the attack has overshot. When the battle comes to an end, resulting in a draw, Happy is seen in tears, happy and relieved to see that his comrade is safe.

After the third day of the Grand Magic Games comes to a close, Happy with the other Fairy Tail members heads off to Ryuzetsu Land in order to relax after the day's events. After arriving Happy realizes that Ryuzetsu Land contains an aquarium and heads towards it with Carla and Pantherlily. Later alongside Pantherlily and Gajeel he sticks his head through a cutout appearing as a fish. Later that day Happy heads to a bar with the rest of Fairy Tail to celebrate. He and Natsu then decide to have some fun by barrel surfing through the bar, both of them flipping out at the end of their ride when they crash into Gajeel and Wendy. Despite some of the members' comments that what they are doing is dangerous, Happy quickly hops on again to ride with Lisanna.

During the fourth day's event, Naval Battle, Happy, along with Carla, watches as Minerva steals Lucy's keys and cries out Lucy's name in worry.

After Minerva is declared the winner, Happy looks on as Erza, Natsu and Gray confront Team Sabertooth. As Lucy rests in the sick bay, Happy watches over her and presents her keys to her as soon as she expresses worry about them and later comments on how it is unfair that the new team, comprised of Fairy Tail Teams A and B, has to keep the points of the lowest ranking team.

Afterwards, a tag battle between Quatro Cerberus and Blue Pegasus takes place with participants Bacchus and Rocker versus Ichiya and the Rabbit. Happy is seen anxious to know the true identity of this mysterious Rabbit. He is utterly bewildered to see that the Rabbit is an Exceed from his homeland, more specifically, Nichiya. Later, the highly anticipated tag battle; Team Fairy Tail versus Team Sabertooth involving Sting and Rogue versus Gajeel and Natsu is announced. Happy is very concerned about this fight between Dragon Slayers, stating that since it's Natsu and Gajeel, they surely will win. The fierce battle between the Dragon Slayers takes place with both sides intensely fighting for the win. When Sting spells his Holy Nova, Happy is amazed by the explosion caused in the impact, having to hold himself due to the released force.

Happy watches the battle of the Dragon Slayers alongside the others. As the battle continues, Happy smiles at Natsu and Gajeel's extreme endurance, which has allowed them to continue fighting despite the grievous blows they've taken. At the end of the match, Happy joyfully witnesses Natsu defeat Sting and Rogue alone, leaving Fairy Tail in the ranking's first place at the end of the fourth day.

Later, Happy and the other Exceeds accompany the Dragon Slayers as Gajeel takes them to a location he had found. When they arrive Happy is shocked to discover that they've found a Dragon graveyard. While wandering around Happy makes the comment asking if Igneel could be one of the Dragons located here and gets scolded by Carla for it. In response, Natsu tells Happy that Igneel is not one of them, and Gajeel further explains that the Dragon bones located here are far too old to be the Dragons they had known.

As Wendy begins drawing the Magic Circle to invoke the Milky Way spell, Happy watches as the area lights up and the spell beings to work, with a large Dragon being summoned, which shocks Happy. Happy listens as the Dragon Zirconis explains the history of the Dragons and how they originally ruled the world and thought of humans as just food. The revelation of the history of Dragon Slayer Magic and how it can affect the slayers themselves shocks Happy but Zirconis soon reveals that Acnologia was once human and turned into a Dragon, shocking him even more. Zirconis soon vanishes, much to Happy's dismay as he runs to Wendy, who tells him that Zirconis' aura disappeared. The arrival of Arcadios and Yukino in the graveyard surprises Happy as he hears the knight saying they can defeat Zeref and Acnologia.

Upon seeing Arcadios and Yukino together, Happy notes the latter to be an excommunicated Mage of Sabertooth, wondering why she arrived with the former. Upon Natsu getting into Arcadios' face when his need for a Celestial Spirit Mage is revealed, Happy warns Natsu about Arcadios' rank in the Fiore army. Upon entering the Mercurius castle, Happy wonders whether it is really alright for them to be there. Upon seeing the device intended for use in the Eclipse Project, Happy is shocked beyond words. After being surrounded by the army and learning the implications of the Eclipse Project were it to go forth, Happy starts considering the effects it could have. After Lucy, Yukino and Arcadios are arrested, Happy and the rest of the gang are ejected from the castle but told that if they win the Grand Magic Games, due to the King's liking of Fairy Tail, they may have an audience with him.

Back at the Lodgings, Happy and the others explain that Lucy has been captured. He tries to calm Natsu down, saying that their opponent is the King. The next day, Happy is part of the search team sent to save Lucy. While on their way to Mercurius and with the last battle of the games about to begin, the rescue team begins to wonder how they would enter the palace. Happy says that he has a good plan which Carla quickly expects to be something ridiculous. Happy reassures Carla's with his "perfect" plan as Natsu, Mirajane and Wendy stand in the disguises Happy provided for them. Carla comments how silly they look and the plan is then dropped when Mirajane tells the group her own plan. Later Mirajane disguises herself as a palace guard and takes the "captured" Wendy and Natsu to the palace, sneaking the whole team in when told to take Wendy and Natsu to the cells, with Happy and the other Exceeds hidden in her disguise.

Soon after, the group manages to locate the cell where Lucy and Yukino are, and Happy greets them, stating that he arrived with them. With Natsu melting the bars to free the girls, Lucy states the need to retrieve her keys as the floor beneath them suddenly opens, causing Happy and the rest of them to fall below. Eventually, the group lands in a strange area beneath the palace. Suddenly, a voice tells them that they've now been trapped in "Abyss Palace". The voice is revealed to be Princess Hisui E. Fiore, who calls them "thieves" and tells them to rot there as she closes the communication and leaves them with no way to leave. After the princess shuts off the communication with the intruders, Happy and the others begin to seek a way out.

Initially, searching does not yield any results but soon after, Carla finds a way out, which Happy congratulates her on. The group squeezes through the narrow passage and comes across a battered Arcadios, who weakly tells them to get out of the way as they try tending to him. A large figure attacks the group from behind, causing them to scatter. Another figure pulls a flag from the ground and sends the group into the air as three more beings make their presence known. Arcadios reveals them to be members of an independent faction supporting the kingdom, Garou Knights, and states they're the reason Abyss Palace is inescapable.

Happy listens as Arcadios warns the Mages that the Magic of the knights is made for killing. Once Pantherlily tries to get into the battle, Happy attempts to do so as well, though his attempt is shot down by a skeptical Carla. Once Cosmos and Kamika activate their combination attack, Happy, holding Carla, is nearly sucked in alongside the other Mages until Natsu, Mirajane and Pantherlily work together to destroy it, creating a large explosion as a result. In the aftermath, Happy winds up with Yukino, Lucy, Carla and Arcadios. As Happy states they should look for the others, he is levitated into the air by Uosuke, a member of the knights. As they prepare to fight, Arcadios warns them that when Uosuke kills someone, not even their bones are left.

With Uosuke starting his attack, Happy notices that something is off and looks to Carla to see if she does as well. Suddenly, the ground around Lucy and Yukino begins to crumble as it turns into lava, due to Uosuke's Magic, leaving them hanging on the ledges of the remaining ground. Happy and Carla try to save the two girls to no avail as Uosuke catches them in midair using his Magic, with Happy angrily reminding Uosuke that he is not a fish, only to be smashed into the ground. Acardios then rushes through the lava to save Lucy and Yukino, with Happy watching hopelessly as Arcadios sinks into the lava after lifting the girls onto solid ground. Happy is then overjoyed to see Horologium rise from the lava, with Acardios safely stored inside it and Loke arriving with the Celestial Spirit Keys for Lucy and Yukino, giving the group a chance to fight back. Later standing alongside Carla, Happy informs Lucy, Yukino, and Loke that Acardios is still breathing.

Happy walks alongside the others as they look for a way out when he comes across a centipede that emerges from the eye of a skull laying on the ground, alarming him. Seconds after, he listens as Carla and the others talk about the jade necklace Arcadios has in his possession, which he believes is somehow related to Zirconis and the reason why he is still alive after being exposed to the lava bit. As they continue to walk and talk, they reach a closed door. Natsu lights his fist up with fire and charges at the door, in hopes of knocking it down. However, before he can land a hit the door opens up, and a hooded feminine figure appears at the entrance. Happy looks at her as Natsu asks her who she is.

Happy is confused at the appearance of another Lucy, as he states that they're not even in Edolas, and the other woman states that she came from the future, confusing Happy further. The group then decides to leave and shoot a signal, meaning that Lucy's rescue was successful. A while later, Happy and the group realize that they are lost. He agrees with Pantherlily when he says that they were supposed to inform everyone when they had rescued Lucy. When Natsu suggests to fight the soldiers and extract information from them, Happy agrees, since they have powerful Mages within their group to assist, but Mirajane explains that they shouldn't leave a bad impression on the King. Suddenly, the Lucy from the future stirs and everyone immediately turns to her. She asks them where they are, and when she finds out, she remembers that they are going to be captured again. When Natsu and Mirajane say that it's impossible, she explains that because they passed Eclipse, they couldn't use their Magic, hence they got captured. When Wendy asks the future Lucy why she came back to the past, she says that she came to change the worst future, making Happy and the others confused.

Happy and Natsu exclaim their tremendous surprise in the revelation that a herd of Dragons will attack Fiore. As Natsu tries to get ready for the attack, Lucy asks him if he really wants to battle them and Happy agrees, saying that it is impossible. When the future Lucy hesitates to answer Carla’s question, Happy anxiously asks her if they will all die. Ignoring the question, she tells them to meet Jellal, who she explained everything to and should be planning a strategy, and the others through an underground passage.

Led by the future Lucy, Happy and the others tread through an underground tunnel. Happy discovers that the future Lucy had explored the tunnel beforehand to avoid being captured. Unexpectedly, the Royal Army comes rushing towards them, trying to capture them. They realize that Yukino and Arcadios have disappeared and Happy watches as Mirajane turns back to search for them. As the others fight the soldiers, Happy uses a stick to try and defend himself. When the Army brings out a Magical unit, they hit Natsu, which makes Happy call out to him, worried. As the fight goes on, Happy, armed with a stick, tells Carla to stay back as it is too dangerous, but he is himself told to do so by Pantherlily.

His team slowly being overwhelmed by the sheer number of enemies in their path, Happy soon becomes defenseless when Uosuke appears, once more using his Magic to lift both Happy and Carla into the air. Floating, Happy suddenly spots something heading their way, and watches on in shock as a huge shadow slinks along the floor, sucking the Royal Army and the Garou Knights down whilst leaving them completely unharmed. Surprised by the sudden disappearance of their enemy, Happy watches as the shadow doubles back towards his group, taking on a human form and introducing itself as Rogue from the future. Although Happy is suspicious of the future version of Rogue at first, he rejoices when the man says that he will help them beat the Dragons, using the effects of the Eclipse Cannon. However, soon Rogue attacks Lucy, as he says that she is an obstacle to opening the gates, and in an attempt to shield her past self, future Lucy takes the fatal blow in her place. Despite her asking Happy not to be sad, he says that Lucy is a friend and that there is no way for him not to be sad. As Future Lucy dies, Happy cries in despair.

As Natsu attacks the Rogue from future and tells Lucy to leave the place, Happy along with her, Loke, Carla, Pantherlily and Wendy escape from the battle. They then find themselves at the location of the Eclipse Cannon as Hisui approves of the start of the firing sequence. When Happy asks about Loke's whereabouts, Pantherlily replies that he had to leave due to Eclipse's power to drain Magic. Suddenly, they are found out by Arcadios who tells them to reveal themselves. Even though Happy exclaims that they have done nothing wrong, Darton just replies that the circumstances have changed. When Hisui congratulates them for winning the Grand Magic Games, Happy reacts with happiness. Afterwards, they watch, together, as the Eclipse Gate opens. Happy notes that the Magic coming out of Eclipse is immense, with everyone else agreeing that with such power, defeating the Dragons doesn't seem so impossible now. However, Lucy suddenly begins to walk towards the Gate, yelling out that it needs to be closed. As Happy questions why Lucy is suddenly against the entire plan, a tremor strikes the square and the Gates finish opening; a gigantic Dragon walks through the Gates and onto Mercurius, leaving Happy terrified.

With the beast fully emerged, Happy is soon flung back by the chaos it causes, landing on the other side of the court with Wendy. Watching as beast after beast appears through the Eclipse Gate, both Happy and Wendy panic when they see that the Gate cannot be closed. Happy then yells that if they don't do something soon, the city will soon be overrun with beasts. As Happy pleads to Lucy to close the gates, Yukino runs in to Happy's delight. As Yukino informs Lucy of their strategy to close the gate, they immediately initiate the plan, with Happy looking on in amazement as the 12 Zodiac Spirits close the gate. After the gate is closed, Happy and co. celebrate until Future Rogue makes his appearance, stating that the seven dragons who have crossed the gate will suffice for his plans to extinct the human race. As Happy inquisites Rogue's form of Magic to control the Dragons, Rogue takes his leave, but not until he summons Zirconis to do as he pleases, to which Happy recollects meeting the dragon before. When Natsu shouts to the Fiore Mages, claiming that Dragon Slayers can defeat the Dragons, Happy calls out Natsu's name, displaying his joy. Happy then looks on as Zirconis ponders upon who will be his next appetizer. Happy notes the severity of the issue as Zirconis unleashes his Dragon's Roar, which ends up stripping the Royal Army of their armor.

After Zirconis strips Lucy of her clothes and takes her captive, Happy rushes in to save her, only to be momentarily pushed back by the mere force of Zirconis' stomp. Both Mirajane and Wendy try their best to retrieve Lucy from the hungry Dragon, successfully landing a few blows on him. Being hit by Wendy's Dragon roar and taking damage, Zirconis furiously throws Lucy across Crocus. Happy, telling Wendy's group to leave Lucy to his care, pursues the naked Celestial Mage using his Aera. Happy encounters Natsu fighting Future Rogue along the way, and follows him and Lucy as they clash and roll on the ground inside a bell until coming to a stop near a stream of water. He witnesses Natsu groping Lucy's breast, and states that youngsters nowadays are bold; whilst handing Lucy her keys. After conversing with Natsu about Rogue and Motherglare, the dragon he's riding, Happy worries and murmurs Natsu's name. However, much to Happy's delight, Natsu comes up with a strategy. Happy grabs Natsu and takes off asking him if his plan will really work — leaving Lucy to fend for herself.

As per Natsu's strategy, Happy finds Atlas Flame and drops Natsu over the Dragon, with Natsu revealing his plan to consume the Dragon composed of flames, astonishing the Thunder God Tribe, who had been facing the Dragon with difficulties. As Natsu initiates his strategy, Happy notes Natsu's ability to devising plans nobody else would ever think of. With Natsu persistent to consume Atlas Flame, he tells Happy and the Thunder God Tribe to head for the castle to assist Wendy against her opponent. After receiving his assurance to handling Atlas Flame by himself, Happy and the Thunder God Tribe head for the castle in haste. Thanks to Ultear's spell, the entire world turns back in time for a single minute, allowing Happy to see the future, although he is puzzled about what actually happened. When Lucy suggests that the Dragons will disappear if the Eclipse Gate is destroyed, Happy says that if she is right, then the Dragons, along with Future Rogue, will cease to exist in their era. While Lucy and Yukino try to bring the Gate down using their Magic power left, Happy notices a huge shadow over their heads and warns his friends to get away from there. The Gate is ultimately destroyed by Natsu, who at the same time manages to defeat Future Rogue, much to Happy's relief.

After Natsu appears and the Gates are destroyed, Happy, along with Lucy, witnesses the Dragons, as well as Future Rogue, fading away and going back to their own time. Happy then attends the great banquet alongside the many citizens of Fiore. He walks around with his friends with a cheerful expression on his face as many of the present Mages begin to ask themselves where Natsu could be, as he has not been spotted by anyone. Afterwards, Erza, who is attempting to cheer Millianna up, brings Happy into view when she rapidly takes him out of her bra, with Happy emulating Millianna's words: "Feeling spiffy." He is then taken by Millianna to play with her, along with Carla and Pantherlily. Several minutes later, Happy is exhausted from playing with Millianna when Mermaid Heel confronts Sabertooth, claiming that Yukino now belongs to them. The guilds fight for Yukino, but the fight is soon broken upwhen Arcadios announces that the King has arrived. Happy watches as the King entering the vicinity is their own Natsu. He blushes slightly and jumps, filled with joy. On their carriage ride home, Happy looks out the window as they travel on, expressing his farewells. When Carla expresses her appreciation for the taverns, Happy gleefully agrees.

When Happy and the other Fairy Tail Mages return back to Magnolia, the whole town celebrates their coming first in the Grand Magic Games. When Natsu lifts the trophy, Happy, along with other Fairy Tail Mages, cheers for Fairy Tail's victory. The mayor also congratulates the Mages and, much to Natsu and Happy's joy, the whole city contributed to the reconstruction of the Fairy Tail guild building to its former glory.

Sun Village arc
While Lucy and Cana are having a discussion during their bath, it is revealed that Happy babbled out to Cana about Lucy's immodest encounter with Natsu. Happy accompanies Natsu and Gray on a job that the two Mages decided to do together, however, the trio has yet to return in over 3 days, leading Erza, Lucy, Wendy and Carla to scout for them. Being found at the site of the job, Happy explains that for the past three days Natsu and Gray have been fighting constantly, as well as taking breaks to eat and sleep. After being taken back to the guild, Happy witnesses a new request come in for Natsu and Gray from one of the Four Gods of Ishgar, Warrod Sequen.

Happy and the rest of Team Natsu (plus Wendy and Carla) then make their way to Warrod Sequen's house, with happy in particular noting that with the location as scenic as it is, it feels as though they're going on a picnic. After Wendy notices Warrod's house, Happy and the others enter it, but are quickly silenced by the Ten Wizard Saint; Happy is then surprised to see the flowers inside the man's house bloom around him as he counters his previous statement, claiming that he was joking and that the flowers love voices. Happy, as well as Carla, are then picked up by Warrod, who confuses the two with Natsu and Gray, claiming that they look more cat-ish than expected; he quickly dismisses this as a joke as well. Happy and the others then relocate outside, where Warrod describes his request: to unfreeze all the people and the Eternal Flame in the Village of the Sun. Warrod adds that the villagers whom are trapped in the ice are still alive, leaving Happy shocked. Following a short explanation about why he is unable to do the task himself, Happy and the other members of Team Natsu look at each other, and they all decide to accept Warrod's request. Warrod then orders them to turn right; Happy turns left instead. However, a tree then rises from the ground, and carries Happy and the rest of Team Natsu the needed 2,000 kilometer distance to reach the Village of the Sun. While riding on top of the tree, Happy marvels at the scenery below.

When Happy and the other Fairy Tail Mages reach the Village of the Sun, he points out that the village is frozen solid. Both Natsu and Happy are shocked to find out that the village is in fact a village of giants. When Natsu attempts to use his Magic to melt the ice that is trapping the giants, Happy encourages him and cheers him on. However, Natsu fails, and Happy agrees that it is not easy as they thought. When members from a treasure hunter guild, Sylph Labyrinth, appear and ask the Mages what they are doing there, Happy answers that they are trying to melt the ice and save the villagers. When it appears that Sylph Labyrinth plans to use Moon Drip to get the treasure they want, Happy recognizes the substance, and the Fairy Tail Mages decide to steal it from the treasure hunters in order to save the villagers. As everyone takes off after the treasure hunters, Lucy and Wendy notice that Erza is not with them, prompting Happy and Carla to imagine her attacking the frozen giants hoping to fix things. During their battle, a shot is fired at the members of Fairy Tail, leading Happy to look for where it came from.

Scared of Drake firing another shot at them, Happy clings to Lucy's leg and continues to scout the area. Following Gray's stealing of the Moon Drip from the treasure hunters, Team Natsu throws the bottle around so as to prevent the hunters from reacquiring it. When Carla throws the bottle to Happy, the Exceed holds his arms up high, however, the Moon Drip flies over his head and smashes on the ground behind him. This leaves everyone, both Mages and treasure hunters alike, utterly devastated. Tearing up, Happy apologizes to everyone and asks Natsu, when he moves closer, to discipline him. Happy soon becomes surprised to hear that Natsu hears a voice coming from beneath the melted ice and puts his ear to the ground as well, however, he is unable to hear what Natsu hears. Happy then takes off after Natsu when the latter runs away to find the mysterious voice. After Natsu takes off, Happy, along with Carla, takes to the air in order to find him. However, the two soon move back to the ground as they spot an odd creature flying near the town. Questioning what it is, the two comment that they don't think it's safe to fly whilst it is around.

Affected by Doriate's Retrogression Magic, Happy and Carla come crashing down onto the ground near Gray's current standing position, quickly updating the latter on their inability to fly. Happy takes a glace at Gray's opponent and screams in fear, questioning its physique. He then watches as Gray struggles to keep up against the Demon, and steps in to save him from an impending assault. However, in return, he receives a punch to the face when he does so. After Gray defeats the Demon with the surrounding ice, Happy cheers along with Carla as they return to their former appearance, but their joy is short-lived as the creature that kept them from patrolling the skies earlier enters the fray. Shortly thereafter, Happy comes rushing to where Natsu and the others are located, with the strange creature pursuing him, Carla and Gray, and stating that it surely wants to eat them. After Gray and Natsu switch places, Happy stays near Lucy as Gray, readying himself to unfreeze the Eternal Flame, tells them to take a step back. When Gray executes his plan, however, the Eternal Flame vanishes, causing Happy to ponder its sudden disappearance.

Still marveling at the disappearance of the Eternal Flame, Happy soon notices that the Eternal Flame didn't vanish at all, but, rather, merely diminished itself to but a small blaze. After Natsu's slew of attacks upon the altar the flame rests upon, Happy flies up and catches him before he falls. As they descend, Happy watches as the Eternal Flame reveals itself to be none other than the Dragon Atlas Flame.

Happy, along with Natsu, greets Atlas Flame when he sees him to be alive, although the latter corrects the Mages and tells them that he is actually a mere spirit. Much to Happy's surprise, Atlas Flame reveals that all the village, along with him, was frozen by a single being, an Ice Mage who is also a Devil Slayer. After Atlas Flame regains his memory back, he proceeds to melt the village's ice by exerting huge amounts of heat and, before vanishing, he warns Natsu and Happy about a sinister Magic called E.N.D. that Igneel was not able to prevent Zeref from using. After the village is turned back to normal, Natsu and Happy discuss the last words of Atlas Flame.

After the ordeal, Happy and Natsu sit atop one of the giant's heads, celebrating and bonding with them in the process. Subsequently after Happy's peers brood over the mystery behind the attack, Natsu notes that the job has been completed nonetheless, to which Happy agrees. After Lucy acknowledges Flare's disappearance, the giants whom are now agitated stand up, knocking Happy and Natsu off of where they were seated. After Flare responds to the giant's question about how her experiences were in the outside world, Happy, Natsu and the rest of the giants display a smirk on their face. After the giants welcome Flare back to the village, Happy and co. express their joy and continue to celebrate.

Later, Happy and the rest of Team Natsu return to Warrod's house for payment, something which excites the blue Exceed. That night, Happy, Natsu and Gray enter Warrod's secret hot spring, where they watch the girls enter and get into the bath, something which leaves them extremely disturbed; Happy listens as Erza reminisces about the times when she, Natsu and Gray would bathe together. The Exceed later expresses shock when Warrod reveals that he was one of the founding members of Fairy Tail and listens as the old Mage expresses his happiness at meeting the members of the new generation of Fairy Tail: the ones that made the guild what Mavis always dreamed for it to be, smiling as such a thing occurs. However, Happy's smile soon turns into an exasperated frown as he hears that Tartarus may have the Book of Zeref in their possession, and by extension, E.N.D. As the discussion comes to a close, Happy looks on in total bewilderment as Natsu, in a fury, strikes Erza.

Tartarus arc
Having returned from Warrod's request, Happy sits atop Natsu's head at the guild as Levy tells them about E.N.D. and the Book of Zeref. With her explanation finishing, Happy wonders aloud if they too can hail Demons if they have the book, to which he is met with the response that they could only, most likely, summon one Demon per book.

Happy, along with the other Fairy Tail Mages, is present when Porlyusica diagnoses that Laxus, Freed, Bickslow and Evergreen will survive despite the lethal poisoning. Overtaken with grief, the Fairy Tail members decide that it is time to deal with Tartarus once and for all.

While Fairy Tail discusses the possibility of searching out former Magic Council members due to their status as Tartarus' targets, they are unable to fully utilize this strategy due to secrecy regarding their locations. Happy asks why this is, and Carla suggests it is for the purpose of protecting them from those who wish to do them harm. However, the guild is eventually able to locate several former members thanks to Loke and splits into teams to protect them, with Happy going alongside Wendy, Lucy, Natsu and Carla. Arriving at the house of former council member Michello, they find him unwilling to be protected, thinking they want to use him as bait to lure out Tartarus. Happy chides Michello for his rudeness, asking him if that was a good way to speak to a fellow cat. Once his granddaughter Michelia convinces him to be cooperative, the Mages ask why Tartarus might be after him. Suddenly, the house is attacked by Jackal of the Nine Demon Gates, who blows up the structure. Natsu eats the majority of the blow and sees Jackal standing atop the building, surprised to find the Fairy Tail Mages alive.

As Natsu and Jackal begin their showdown, Happy identifies the latter as a member of Tartarus. When Natsu is hit with an explosion sent from Jackal, Happy reassures a worrying Michello, telling him that heat-based Magic is ineffective against Natsu. After Jackal explains his curse to Natsu, Happy sees some strange body marks on Natsu and runs towards him to warn him, but Natsu orders them all to get away from him and explodes from within, which leaves him incapacitated. When Lucy and Wendy decide to take on Jackal by themselves, Happy warns them not to touch him and when they fail to harm him, Happy comments that he is using the explosions to protect himself. Lucy then runs after Jackal by herself and leaves Happy and Carla to aid Wendy in healing Natsu. The four of them then come at her rescue, with Happy and Carla telling a pregnant woman to get away after she is free from Jackal's twisted game. Happy then witnesses Natsu punching Michello, much to his disappointment.

Leaving with Carla and Michello as the fight continues, the Exceed returns only after Jackal is defeated, checking to see if everyone is okay. Although Happy congratulates Natsu for beating the Demon, the latter's victory is short lived once Jackal reveals that he plans on taking everyone down with him, as he plans on exploding himself and destroying the entire city. Fearing for the lives of his friends and the town, Happy grabs onto Jackal and flies into the sky with him, mocking the Demon for thinking they'd lose to him. High in the sky, Happy is consumed by the enormous explosion that follows, leaving everyone below in a state of shock. He emerges from the dust alive however, though severely burnt and with his fur ruffled into an afro, commenting on the close call.

When Lucy contacts Makarov to report on the mission, Happy jokes around when Carla mentions the city being in shambles, saying that so is his hair. When Michello starts talking and reveals to Fairy Tail that Tartarus is probably looking for Face, a weapon able to eradicate all Magic from the continent and that it is sealed by three former Council members, Happy repeats that it is sealed by Organic Link Magic. A short while later, Happy is ordered by a just-awakening Natsu to hurry; the Exceed heeds his friend's command and grabs him after he finishes asking Michello where the ex-Chairman's house is. Flying at top speed, Happy acknowledges Natsu's demand, but before long asks Natsu what is bothering him, to which he is frustratingly told that he didn't realize that Tartarus has had an informant feeding them information that even current Council members didn't know.

Happy flies Natsu to the residence of Crawford Seam, where Erza and Mirajane went to investigate. Happy and Natsu search for the two girls, and Natsu picks up their smell. When Happy smells some herbs, Natsu examines a liquid, which he indentifies as a sleeping drug. When Natsu punches a hole in the ground, destroying Crawford's house, Happy is shocked at first, but when Natsu says that he is allied with Tartarus, Happy replies that this could be how Tartarus knows of Face and the location of the ex Council members. Happy then lifts Natsu again and, thanks to the Dragon Slayer's enhanced sense of smell, finds Tartarus' hideout and drops Natsu on Crawford, knocking him out.

Amazed at Natsu's feat, Happy remarks upon how the man was correct about Erza and Mirajane's location. The Exceed then watches as Natsu does battle with Franmalth and intervenes when Natsu's Magic Power begins to be forcibly drained, though he is quickly swatted away by the Demon. On the ground, Happy marvels at Franmalth's resistance to Natsu's flames, but upon seeing Silver arriving at the scene, Happy states that the air has turned frigid. Watching the two converse, Happy expresses curiosity when Natsu tells Silver that he smells just like Gray, but then begins to shed tears as the Nine Demon Gate mercilessly freezes Natsu for his comment. A flustered Happy subsequently returns to the guild, dazed and frantic over the recent events. After Carla pacifies him, Happy notifies the members of Fairy Tail over the missing members, and after looking at Gray, recollects Silver's dismay towards the Ice-Make Mage. After sharing the nature of Tartarus' moving base, Happy starts to tear up over being helpless but is consoled by Lucy.

After Elfman returns to the guild, bearing bad news, Happy expresses his disbelief and continues to cling onto Lucy after Cana snaps at Elfman. After Levy manages to pinpoint Tartarus' location and reveals that it currently flies just above Magnolia, Lucy tells Happy that they can finally save Natsu and the others, with Happy agreeing. However, Happy notices a bright light before a huge explosion suddenly goes off and destroys the guild, leaving the fate of its members unknown.

Just before the explosion goes off, Cana rushes in the guild hall and begins turning its members into cards using Card Dimension, then ordering Happy and the other two Exceeds to take the cards and fly towards Cube. Happy and his friends are then pulled by gravity on the bottom side of the cube, and Happy comments on them being upside down, but Carla informs him that enemies are after them. Cana then releases the members from the dimension of cards, and they begin fighting back against Tartarus. Once Fairy Tail is cornered by Tartarus' army, Happy discusses with Carla that they cannot fly and wonders how they can get to the top. However, Erza soon appears and creates a massive breach within Cube, allowing the Fairy Tail Mages to infiltrate their enemies' headquarters. Happy tags along with Lucy, Wendy and Carla as they stumble upon the control room, soon enough learning that Face will active in 41 minutes. Happy begins to run around whilst pondering what to do. As the group decides to go to where Face is located, a skeletal figure appears behind them.

Happy reminds the others that they have to stop Face, so they all decide to make a run for it. After Lucy distracts Keith and the newly-appeared Franmalth with her Celestial Spirits, Happy flees along with her, Carla and Wendy. However, Keith stands in their way again, and Happy prepares to hit him head on, but Gray interferes and allows them to continue their escape. However, Franmalth, having copied Aries' wool powers, manages to trap Happy and Lucy in the wool, leaving only Wendy and Carla able to run away, but not before Happy tells Carla to be careful. Natsu also joins the fight soon, much to Happy's happiness and relief, and at that point Franmalth transforms his appearance to one similar to Taurus', which shocks Happy.

Though worried as Franmalth transforms his face to Aries' to avoid being struck down, Happy comments that Natsu is harsh when he hits Franmalth when the Demon fails to do the same by using Taurus' face. However, Happy trembles in horror as Franmalth decides to use the most powerful soul in his arsenal. Taking on the likeness of Hades, he continues to fight Natsu, with the latter shifting into Lightning Flame Dragon Mode and unleashing a roar, the tremors of which push Happy back. Seeing him absorb Natsu's Magic, Happy marvels at Franmalth's abilities. As Franmalth states the era of Mages coming to an end with Face's soon activating, Happy expresses his disbelief at the fact that all Mages will be unable to use Magic. Happy is then shaken when Cube reacts to Face's approaching activation. Marveling at the tremors, Happy learns that there are only three minutes until Face activates.

With Franmalth screeching that Face has activated, Happy and the others soon discover that it hasn't, with him in particular celebrating Wendy and Carla's success; Happy watches as Franmalth loses his cool and, in reply to Lucy's statement of them needing to do something, states that he can absorb Magic, Celestial Spirits and people. However, at that moment, Happy and his friends are hit by Franmalth's Formula 28, which leaves them critically wounded. Happy, Natsu and Lucy are then grabbed by Franmalth, who tries to absorb their souls; with encouragement from Natsu, Happy manages to resist the process and goes on to watch him defeat Franmalth with a boulder, noting that something like that doesn't have a soul for him to absorb. With the Nine Demon Gate defeated, Happy watches as all of Franmalth's souls leave his body, however the soul of Hades appears behind them, quickly telling them (before disappearing) that Tartarus' true goal wasn't Face, which causes Happy to hold onto Lucy, shocked by the appearance of the dead man. Hearing Hades' command to tell Makarov to 'release the light', Happy splits up with Natsu and Lucy in order to go find their guild's Master.

As he flies through Cube trying to find the other Fairy Tail members, Happy is contacted by Warren, who is using his telepathy to tell the guild members that Mirajane and the other hostages have been safely recovered. Making use of the connection, Happy repeats to Makarov what Hades said, surprising the Guild Master, who questions why Hades would say such a thing. As Happy conveys his own confusion over the matter, their communications are high-jacked by Mard Geer, who greets and bids farewell to the Fairy Tail Mages as he casts Alegria. Shocked, Happy watches as Cube begins to warp and deform, the building sucking in him and the rest of his teammates, freezing them solid and completely trapping them.

After being freed from Alegria, Happy bumps into Pantherlily, who is looking for Gajeel and is shocked upon noticing the mushroom on Happy's head. Happy then explains that he woke up like that and cannot get it off. Pantherlily then tries to pull it off of Happy's head but fails. Thinking about Carla's reaction to the mushroom on his head, Happy begins to worry, but Pantherlily does his best to cheer Happy up by telling him it is not that bad. They then leave together to try and find the others, with the mushroom, who turns out to be Franmalth, revealing his plan.

Happy and Pantherlily soon reunite with Erza, as well as Lector, Frosch and a redeemed Minerva. Once the latter sees Happy's mushroom, she quickly removes it from his head, scaring him and leaving him dumbfounded, but then she explains to him that the mushroom is actually one of the Nine Demon Gates and now he can tell them where the control room is. Pantherlily congratulates Happy, and he shyly accepts the compliment. As the team walks towards the control room and Minerva expresses her worry about Sting and Rogue, Pantherlily claims that despite the events that took place in the Grand Magic Games, their past opponents are actually decent people and Happy happily agrees. When Lector mentions that Minerva is also a great cook, Happy wonders whether or not her dishes contain any fish. An annoyed Erza, however, interrupts their discussion by telling them that they must hurry, and Happy rushes to follow her lead.

Happy and the others soon make it to the control room, where he points out the deceased Chairman working on Face's operation. However, he and everyone else in the room is manipulated by Sayla's Macro and is forced to asphyxiate himself; they are all saved by Mirajane, who attacks Sayla and removes her control from them. Now free, Happy expresses his desire for Erza to defeat Kyouka, who has absorbed Sayla's power, and stop Face's activation. Happy then watches, in amazement, as Erza matches Kyouka in their battle, until he hears Mirajane struggle and asks her if she's okay. Hearing that Jet, Droy and Warren are where the Lamy clones are, Happy thinks to himself that it isn't wise to count on them for help. He then wonders aloud what the sound he's hearing is.