Somehow you end up being arrested and thrown in the Nalbina Dungeon. "Amalia" doesn't join you, apparently she is the leader of the resistance to the Empire. A desperate Penelo tries to stop your arrest but the guards don't let her near Vaan. Baltier feels sorry for Penelo and gives her a little something to keep and promises to bring Vaan back to her safe and sound.

At the dungeon Fran senses a way to escape that resides directly under a cage hung from the ceiling, were a wretched, thin captain Basch who just got teased by Judge Gabranth is being kept for the last two years. The team jumps on the cage to escape pursuit, making it fall in the start of Barheim passage, shattering and freeing Basch. Baltier invites him to join the party. Vaan wants to refuse Basch the guy who betrayed Dalmasca and his brother Reks, but Baltier ignores him.

After many skeletons and mimics you leave the passage and arrive at a northern part of the Eastersand. Back in Rabanastre Vaan says goodbye to everyone but soo he finds out that Penelope has been kidnapped by some bounty hunters that are after Baltier's head. Baltier and Fran agree to help Vaan rescue her but they believe they need some help from Amalia or other people from the resistance. The team meets Basch at the resitence hideout, and again he joins the party. The team flies to Bhujerba to meet Penelo's kidnappers at Lhusu Mines, as demanded by them. A very young man named Lamont asks to join the party at the mine's entrance.

After getting Penelo back and kicking the bounty hunter's butt the team finds out that "Lamont" is none other than Larsa, the Arcadian Emperor younger son and second in line for the throne after Lord Vaine. He was on the mines to find a piece of nethicite, a special kind of magicite that has been created at Draklor Labs. Larsa takes Penelo with him Marquis Ondorre's palace (Bhujerba's ruler) and prevents the guards from arresting the rest of the team.