Cecilio’s elf attendant, Lize, reveals to Efa she must have an elf ancestor to use spirit magic. Seika finds the dragon is violent due to having an egg; having become female after his wife’s death. Lize shows Efa the harem is actually a university for young ladies. One may become queen one day but most become government officials. The dragon lets Seika help care for the egg. Efa decides to remain with Seika but Cecilio tries to force Efa to sign all the legal papers, assuming he can just pay Seika for her later. Seika suddenly appears with the dragon and rescues her. Efa helps Seika capture Zecht who tried to steal the egg to sell it.
Cecilio decides to have the dragon killed anyway, hoping such a bold decision will strengthen his chance of becoming king. Fed up of Cecilio’s idiocy Seika thoroughly scolds him over his treatment of Efa. Lize actually agrees and apologises to Seika and Efa. Cecilio is ashamed and lets the dragon live. Lize gifts Efa several Light spirits that provide healing magic. They return to the academy but elsewhere a team of five powerful demons set out to finally kill the Hero.