The Gundalians are unaware they have taken possession of The Element, so the Battle Brawlers head into Interspace to take it back with Drago as their main attacker. Could this element lead to another Drago evolution?
Thanks to all the humans they have brainwashed, the Gundalians manage to destroy the Nethians shield and enter into their cities. They are looking for an item hidden within a Bakugan known as the Element. Supposedly the Element has the ability to take control of the entire galaxy and is the sole reason the Gundalians have invaded. Seeing no other option the Nethians take The Element to Earth to hide it with Princess Fabia, but once they arrive in Interspace the Gundalians send their agents their to intercept this package and see why more Nethians are headed toward Earth.
The Brawlers continue to enter Interspace with the assistance of their Bakugan to try and rescue more kids. Meanwhile, the history of Ren is revealed.
After being ejected from Bakugan Interspace, Dan and company must try to convince the other kids that going into Interspace is dangerous and will make them slaves. When they fail to do so, they take actions to shut the circuits down. Dan and Jake then shift into Bakugan Interspace with their Bakugan's help and try to begin rescuing those kids who have been made slaves.
With the Brawlers finally convinced of the truth, Fabia decides it is time to summon the other original Bakugan for the Brawlers from Nethia. Before the Brawlers can get used to their new communication though, they learn about the brainwashed Brawlers the Gundalians took and are challenged to battles by them.
Marucho challenges Ren to a battle in an effort to determine if his or Fabia's words are true. However he does it without the other Brawlers knowledge. If Marucho loses he could be kidnapped by the Gundalians and made their next mind slave unless the Brawlers can find some way to keep their friend safe.
Shun listens to Fabia's side of the story and decides she is telling the truth. He leads her back into interspace to make the other Brawlers listen and reveal that Ren has been a spy this entire time. However he finds that Dan is about to battle with Jessie Glenn, forcing Shun to step in and stop him. Shun turns the battle over to Fabia, where she reveals it is the Gundalians that have invaded Nethia and admits sending an SOS to other Brawlers hoping they could find some help. Slowly the Brawlers begin to accept her story, all but Marucho, who decides he must face Ren later to find out which side is fully true.
The Nethian spies begin kidnapping top ranked Brawlers after defeating them in battle, and they take them to meet Emperor Baronius. When Marucho places a message up encouraging Brawlers not to engage the Nethians, they are given no choice but to challenge the Brawlers. Sid and Zenet challenge Dan and Ren with the winners claiming Drago to a battle.
Jake has been practicing with Dan, but he questions if he is really ready to become a Battle Brawler despite getting Dan down to 10% of his life points. During his first match in an arena Jake is booed out after losing to a supposed Nethian spy named Mason Brown. The battle discourages Jake so much that Julie decides to seek him out and tell him not to follow Dan's lead, but instead to find his own style of battling. Jake accepts Julie's words and enters into a rematch with Mason where he wins and officially joins the Brawlers.
Princess Fabia arrives in Bakugan Interspace hoping to find out if the message she sent off during Bakugan New Vestroia has found strong warriors to help them. However Marucho has used the data Ren provided to track down intruders and has come across Fabia as being a Nethian spy. Fabia fights Dan, but when the Brawlers see she has the original Aranaut Shun begins to question all the words Ren has told them and decides to seek out Fabia after the battle.
Ren finds what appears to be Invaders entering Bakugan Interspace. He shows this info to the Brawlers, and Dan decides to face off with Sid and Leena to see if his visions of a war with Bakugan are true. Ren admits that he is from another location called Gundalia, and he tries to convince the Brawlers that Gundalia has been invaded by the Nethians and that they are desperately needing the Brawlers help to stop the war.
It's an all new adventure for the Bakugan Battle Brawlers when Dan's family moves to Bayview City and Marucho's Bakugan Interspace becomes fully operational to everyone, allowing kids all over the world to log on and display their battling skills. Dan heads to a cafe in town where Julie works to meet with his new friend Jake, a young brawler who is only familiar with virtual bakugan. The two make there way to Bakugan Interspace where they meet up with Marucho who gives Jake Subterra Coredem. Jake is excited to meet his partner, but quickly saddened when he learns it is only a synthetic bakugan and not a real one like Dan and Marucho's bakugan. Dan and Jake immediately want to battle, but discover that all the available arenas are occupied. Marucho remembers how Ren suddenly appeared in Bakugan Interspace, having been let in by Kato, and helped the brawlers artificially create synthetic bakugan for Bakugan Interspace. Just then, Ren arrives having been made the Head of Data and Research of Bakugan Interspace ad informs them that Shun is currently in battle at one of the arenas, so the brawlers promptly head off to cheer on their friend. With Shun quickly seizing victory, Ren is scheduled to battle Dan. As the battle intensifies, Marucho is forced to shut down Bakugan Interspace and Dan is knocked out. Before coming to, Dan has a vision of Bakugan at war, something which everyone, except Ren, brushes off as a hallucination...
