Phantom Lord arc

The Phantom Lord arc is the fifth story arc of Fairy Tail. After completing the Galuna Island mission, Team Natsu returns home to see their guild building damaged by enormous iron beams. They quickly find out it's a rival guild called Phantom Lord who committed the act and soon, the two guilds find themselves against one another in an all-out war. Upon returning to Fairy Tail, Erza, Gray, Natsu, Lucy and Happy find the guild impaled by numerous giant metal rods. Informing them about the situation, Mirajane tells the team that the Phantom Lord Guild is behind the attack. During that time, the guild members are all in the basement, with Makarov welcoming Team Natsu back as if nothing happened. Natsu is clearly upset that Makarov is just ignoring what happened, but Makarov then reminds the group that they went on an S-Class Job without his permission, subsequently punishing them. Later, Lucy returns home, only to find the rest of her team in her apartment.

 Erza says that since Phantom Lord attacked, they may know where each of the guild members live so it would be better if they stay together. While staying over, they discuss about Phantom Lord and their long-term rivalry with Fairy Tail, being equal in power, as both of their Guild Masters belong to the Ten Wizard Saints, Phantom Lord has the elite Element 4 team on par with Fairy Tail's four S-Class Mages in terms of strength, and, finally, Gajeel Redfox, considered the Guild's strongest member, who's a Dragon Slayer just like Natsu, with his element being iron. In the meantime, in Phantom Lord's base, Gajeel himself appears, eating different metal parts before telling his Guild Master his another attack on Fairy Tail, having beaten the team Shadow Gear and crucified them to a tree. Back at Magnolia, the townspeople and Fairy Tail Mages shockingly witness such act. Makarov then arrives on the scene and, now completely serious, says that Phantom Lord has gone too far. As he crushes his staff in rage, Makarov officially declares war between the two guilds. With Lucy remaining to the guild to watch over the injured team, the rest of Fairy Tail attacks Phantom Lord’s base in retaliation. The Element 4 and Gajeel, however, are nowhere to be seen, something which easily grants the upper hand to the invading force. The Phantom Lord's Dragon Slayer then shows up, wondering whether he should join the fray. Somewhere else, though, Lucy, who has left the Guild and is walking through town, is suddenly reached by two members of the Element 4, Juvia Lockser and Sol, and, having been rendered unconscious, is kidnapped. Back at Phantom Lord’s base, where the battle rages on, Gajeel finally joins in and starts fighting Elfman. However, their brief confrontation is interrupted by Natsu, who goes on to fight Gajeel himself. In the meantime, Makarov has reached the second floor of the building and is ready to confront Jose. However, Phantom Lord’s Master is revealed to be using a Thought Projection, with which he also shows Makarov an unconscious, captured Lucy. Shocked by this, Fairy Tail’s Guild Master is caught off guard by Element 4's Aria and his Metsu Spell, which deprives him of his Magic and heavily damages him, forcing Fairy Tail to retreat, carrying their injured Master with them.

During that time, Natsu learns that Lucy is held captive in Phantom Lord’s headquarters, going there immediately after. At the mentioned location, Lucy, much to her dismay, is told by Jose that she’s the main reason for the attack on Fairy Tail, as her kidnapping was ordered by her father, who wants her back. Having soon kicked Jose in the groin by tricking him, Lucy jumps from the high cell she’s held in, knowing that Natsu will save her. This proves to be true as the Fire Dragon Slayer catches her before she hits the ground. The two of them then hurry to Fairy Tail, with an enraged Jose saying that he’ll make Lucy pay. Back at the Fairy Tail Guild, everyone is readying for a possible confrontation against Phantom Lord once again. Lucy, seeing herself responsible for what happened, is comforted by her comrades. While looking for help from the guild's S-Class Mages, Cana is unsuccessful in finding out where Mystogan is and Laxus, via a Communication Lacrima, refuses to help his guildmates out, laughing the matter off. Then all of the sudden, all the quiet ends when Phantom Lord’s headquarters are seen moving in the direction of Fairy Tail on large mechanical legs. Once they’re near enough, Jose, still enraged, orders the firing of the Magical Convergent Cannon: Jupiter. Erza, using her Adamantine Armor, manages to stop the blast, but is heavily injured in the process. Afterwards, Jose demands Lucy to be handed over, but everyone angrily refuses to give up a comrade, and Phantom Lord’s Master furiously proceeds by saying that Jupiter will be fired once again in 15 minutes. As Fairy Tail members then start fighting against the Shades Jose has just summoned, Natsu, with Happy’s help, readies to enter Phantom Lord’s headquarters and deactivate Jupiter. Lucy, who would like to fight as well, is put to sleep by Mirajane and is entrusted to Reedus, who carries her to the Guild’s secret hideout. Mirajane, though, having taken on Lucy’s appearance, readies to act as a decoy.