Sorceress Edea Kramer, under the control of Sorceress Ultimecia, seeks to capture Ellone and exploit her mysterious powers. To this end, she orders the Galbadian Army to occupy Balamb Town and hold the entire town hostage while they search for Ellone.
The Galbadian Army takes over the Balamb Hotel and uses it to house their troops. They divert all shipments to their troops at the hotel, and deny the residents access to food and other necessities. The Galbadian Army threatens to burn down the town if anyone opposes or resists the occupation.
Squall Leonhart leads a group of SeeDs from Balamb Garden and infiltrates the town, getting entry by claiming to have information that could help the Galbadians capture Ellone. Once inside, the SeeDs track down and defeat both the Galbadian commander, Fujin, and the Galbadian captain, Raijin. With their leaders in retreat and no sign of Ellone, the Galbadian troops withdraw from Balamb.