[8] When used, players can choose to either restore one Command Point (CP) and increase the ability of a nearby ally, counter the enemy's attack (if downed on enemy's turn) or restore Action Points (AP) to the unit and enable it to move and attack once in an invincible state (if downed on player's turn).

[8] Claude Wallace and his childhood friends Kai Shulen and Raz join the Federation Army in order to fight the Empire in the Second Europan War, both to protect their home country of Gallia and avenge an Imperial attack on their hometown of Hafen.

Federation leaders decide to put all of their resources into Operation Northern Cross, a massive offensive with the objective of pushing straight to the Imperial capital of Schwartzgrad.

Along the way, they battle the elite Imperial tank unit Ausbruch, led by Klaus Walz, who considers Claude a worthy rival.

Crippled by the snow and cold and weakened by stretched supply lines, the Federation forces are quickly routed by a massive Imperial counterattack.

Squad E is forced to flee to the coast, where they are rescued by a trio of highly advanced Federation snow cruisers; massive warships that can travel over the ice of the Crystal Sea.

Belgar tasks Walz with intercepting and capturing the Federation fleet, and teams him up with his chief strategic officer, Forseti and the Valkyria Crymaria.

Forseti is furious since their mission was to capture the cruisers intact, and he reveals to Walz that he has planted his sister as a spy aboard the Centurion in order to track its movements.

At the same time, Riley finds a young amnesiac girl named Angie in the engine room, and the crew assumes her to be a stowaway.

Knowing that the Centurion can't escape the blast unless at full speed, Angie places herself inside the reactor, revealing herself to be the power source.

Crymaria loses control of her powers again after believing Walz was killed, but he appears and helps calm her down, promising her that they will live a happy life together after the war.

Forseti boards the ship, intent on rescuing Angie since he had previously been part of the secret Federation program to acquire Valkyria for the reactor experiments, and his guilt motivated him to defect to the Empire.

Squad E disbands and the survivors pursue their own interests while Claude, Riley, Leena, and Angie return to Hafen to live in peace.