Princess Yona of the Kingdom of Kouka, with her unusual red hair, has lived a comfortable life in Hiryuu Castle protected by her father King Il, who hates conflict, and her childhood friend and guard, the young general Hak. Yona is overjoyed when her cousin Soo-Won, whom she has loved since childhood, arrives for her sixteenth birthday banquet.

Though Hak continues to fight off the soldiers pursuing him, a poison prevents him from fighting like his usual self

In their search for the Blue Dragon, Yona and her friends visit a hidden village carved from stone. Though Ki-Ja insists the Blue Dragon is there, the villagers claim there is no Blue Dragon.

"Why? Why am I so afraid? She's just a little girl..." While suffering injuries, Yona and Yun successfully complete their task, and Jeaha rushes to their aid to fight against hordes of attacking mercenaries. Watching Jeaha fights, Yun realizes how truly amazing those who possess the strength of the dragons are. Sinha joins the fray, and the mercenaries continue to fall. Meanwhile, Hak and Gija remain behind to fight with the pirates, overwhelming their enemies with extraordinary strength. Realizing he is at a disadvantage, Kumji tries to flee so he can recuperate...