Natsu is still trapped within the Lacrima, and Dragon Rider is nearing Magnolia! Elfman & Co appear outta nowhere and knock down Gray. They're taking him the master. In the city Fairy Tail is letting people take shelter in their guild and getting ready for Battle. Erza and a few others are fighting Daphne's lizard men. Can they stop the dragon?
Daphne's past is revealed. She started her experiments in her hometown. The first step was hatching a 'fake' dragon. She hatched a bunch of them, and then let them run rampant in the city to try them out. The people of the city were all wellversed in the Hidden magic. So they hid, and she cast a spell to make their Hidden magic permanent. Since then the town was known as Silent Town. The people were still there, yet they could not be seen. Natsu arrived there once searching for Igneel and spoke to a shadow, one of the inhabitants, and promised to free them of the magic if he ever stumbled upon one who controls dragons. Turns out Gray had followed Natsu at this time. Natsu forgot about the promise, but Gray remembered. He teamed up with Daphne and learned that the only way to beat Dragon Rider was from the inside, so he lured in Natsu, and here we are.
Things are getting hot. Next episode!