Though she learns of the death of Tenma, and of her brother Alone’s reincarnation as Hades, Sasha pushes away her sadness and steadfastly fulfills her role as Athena. Meanwhile, while carrying Tenma’s body, the Silver Saint Yato is visited by the Goddess Yuzuriha, who brings him to Jamir. The Chief of Jamir, Hakurei, tells him Tenma is not completely dead.

Tenma and the other Saintly Warriors head towards an Italian town where the warriors of the Underworld are gathered. Tenma realizes it is his hometown, and worries about Tenma’s fate. However, Alone appears amongst the burning ruins of the town as the reincarnation of Lord Hades. Tenma – shocked by the evil transformation of his dear friend – is mercilessly attacked by Alone

Hakurei uses a powerful attack with the help of his fallen comrades to seal Hypnos. But when he raises his blade again to destroy the barrier, King Hades appears. Tenma and Dohko come to help, but the awakened Hades is simply too powerful. But just when they think it's all over...

Hakurei goes into Hades castle alone, protected by a blade from the last Athena. He tears apart the oppossing Specters until he reaches the center of the barrier that protects Hades Castle. When he attempts to destroy it with his sword, Hypnos appears. Will Hakurei be able to defeat the foe he has hated since the last Holy War?

With the four God's barrier destroyed, Hypnos's "Barrier of Sleep" is lifted, and the forces of the Saints march on Hades castle! Hakurei gives them a rousing speech as Seiji, then enters Hades castle alone to defeat Hypnos. And as Alone paints his Lost Canvas in the depths of the Dream World, Hypnos turns him into the real King Hades...

Athena enters Sisyphus's dream. There she finds that Sisyphus torn by guilt over taking her away from Alone and Tenma. He thinks that he ruined her life, and caused the Holy War. Athena risks her life to attempt to persuade him to open his heart and rise from the darkness. But El Cid's Cosmo is finally running out in the attle with Oneiros!

Tenma and El Cid are helpless before the combined might of Oneiros and the other three Gods. But Athena appears in the dream world to save Sisyphus. Tenma and El Cid begin the fight anew to protect Athena, and succeed in removing Oneiros from the Dream World!

With one of the four gods down, El Cid finds himself confronted by Icelus. Icelus continues to overpower El Cid with his dimensional abilities, but El Cid is determined to rescue Sisyphos.

Nearing Hades's castle, Tenma suddenly finds himself standing before his undamaged village. He can't shake the feeling something is wrong as Alone and Sasha tell him everything has been a dream.

Golden Saints gather around the Goddess Athena and her Sanctuary, in preparation for the new Crusade against the Underworld warriors. Around this time, as Tenma undergoes training to become a Saintly Warrior, he is reunited with Alone’s little sister, Sasha, and learns that she has transformed into Athena. Meanwhile, thinking of his dear and far off friend Tenma, Alone feels lonely and falls into despair.

Hypnos gathers the four gods who control dreams. One of them, the Vision Icelus, appears in Sagittarius, avoiding Capricorn El Cid's attacks, and steals the soul of the unconscious Sisyphus. El Cid leaves the Sanctuary alone to get it back. El Cid, who had always been by Sisyphus side, felt the reason why he wouldn't wake up...

Thanatos finally gets serious after being wounded by Manigoldo. But even in the worst position imaginable, Seiji doesn't falter. Don't use the word despair so loosely, he says, and Manigoldo remembers his old days with his master and regains hope. The two use their Sekishiki Meikaiha attack in a final desperate attempt, and succeed in separating Thanatos soul from his body, but...

Manigoldo finds the location of the Twin Gods, but is helpless before the might of Thanatos, the God of Death. The Pope Seiji arrives to help him. As he struggles to withstands Thanatos’s attacks, Manigold remembers how he met Seiji when he was young. Manigoldo, a war orphan, once thought that human life was valueless… As Thanatos finally reveals his true strength, is there any way for them to win?

Tenma, Yato, and Yuzuriha are surrounded by Veronica’s zombies, only to be saved by Cancer Saint Manigoldo. Manigoldo had come to protect Tenma at the pope’s orders. With his overwhelming power, he splits Veronica’s body in two. But even this isn’t enough to kill him, and Veronica tries to cause them all to rot along with the forest. Meanwhile, the Twin Gods Hypnos and Thanatos watch the battle from the palace as they play Chess…

Upon entering the forest of Death, Yuzuriha is separated from the others. She is confronted by her brother, who she thought died years ago. His voice sends her back to the past… Meanwhile, Yato is cornered by a giant centipede. As his consciousness fades, he too remembers his past. Will the two arrive in time to help Tenma in his desperate battle against the Specter Veronica?

Pandora seals away Alone in his studio so that he can focus on the creation of the “Lost Canvas,” and completely awakens as the King of Hades. In the shadows, Hades’ Councilors Hypnos and Thanatos, worried about the Pegasus Saint and his connections to Hades, begin to take action. At the Pope’s orders, the Cancer Saint Manigoldo follows after Tenma. On his way to Hades Castle, Tenma reaches the spot where his old village was destroyed, but in its place he finds a gigantic and sinister forest.

Tenma leaves the Sanctuary and has resolved to fight on his own. However, on orders from the Pope, he is stopped by the Cancer Golden Saint Manigold and locked in a cell. Back at the Hades palace, so as to fully awaken Hades, who’s full reincarnation is prevented by Alone’s memories, Hypnos and Thanatos encourage Pandora to trap Hades into an atrium.

The painting covering the whole sky, “The Lost Canvas,” is said to destroy everyone on earth when completed. Tenma hears to his dismay that the once kind Alone is now trying to destroy all of humanity as Hades. Meanwhile, Pandora desperately realizes that the reincarnation of Hades is incomplete, and sends an assassin to kill Tenma, who is stopping the completion of the reincarnation. The Specters use ultrasonic waves to put Tenma and the others asleep, however…

Tenma finally returns to the Sanctuary, and challenges Alone to a fight, only to have the tables turned. Then, the Pope arrives and uses an amulet from a previous incarnation of Athena to release the “Talisman Cage” and weaken Hades’ power. He tries to seal Hades in the Sanctuary using Athena’s cosmos. However, Pandora rushes over…

Aldebaran bears Kagaho’s powerful attack, and defeats him with the “Titan’s Nova,” a move so powerful it breaks the earth. However, Aldebaran feels Kagaho is not a threat, and does not finish him off. The hurt Kagaho flies away into the twilight sky. Later at the Sanctuary, Athena’s protective spell is violently torn by a giant cosmos. Lord Hades appears before Sasha!