Lilac to the Rescue
Carol and Lilac were on their way to Shang Tu; a wealthy place where they were going to steal enough funds to sustain themselves for the year. When Lilac spots a plane hurtling out of her way into the countryside, she selflessly rushes to rescue the pilot. She discovered that the pilot is a turtle-shelled, duck-billed man named Torque, who was ambushed by a mechanical-armed snake named Serpentine. Carol arrived a little late, though. During this, Lilac unwittingly catapults herself to the forefront of an impending conflict.
Torque asks for Lilac and Carol's help in rescuing the Kingdom Stone, a very valuable relic that contains untold amounts of energy. In doing so, they become embroiled in a brewing conflict between the Three Kingdoms of Avalice: the city of Shuigang, which has become aggressive and warmongering following the death of it's King and the rise of his son, the mentally unstable Prince Dail; the city of Shang Mu, whose wealth-obsessed leader Mayor Zao is desperate to solve a recent energy crisis; and the city of Shang Tu, whose Royal Magister is not well-versed in war.
Theft of the Kingdom Stone
The two rush to the Kingdom's shrine to protect it only to be briefly stymied by Shang Tu's officers, General Gong and the priestess Neera Li, who refuse to believe their claims of a theft plot. However, they arrive just in time to watch the Kingdom Stone be stolen by Spade, who is also Dail's half-brother, and Lilac and Carol's sworn rival who steals it for Mayor Zao, as part of his own plan to discover the truth of his father's murder. The theft of the Stone causes a cave-in, which briefly separates Lilac and Carol, the latter being trapped inside and pinned by rubble. However, Carol is saved by the timid wild child Milla, a hush basset who had been tailing the pair with the intent of meeting a dragon. She and Lilac later formed a friendship with the lonely hound and invite her to their base.
Later that night, Carol discovers that Torque is not who he claims to be; when she and Lilac press him on it, he reveals that he is, in fact an alien sent to Avalice to apprehend an intergalactic warlord, Arktivus Brevon, who crash landed on Avalice after a fierce battle, and is working on getting his Dreadnought operational once more. To accomplish this, he invaded Shuigang, murdered its king, and brainwashed Dail to do his bidding, convincing him that Mayor Zao was the murderer and getting him to declare war on Shang Mu. Brevon intends to use the chaos of the war as a distraction so he can steal the Kingdom Stone for himself. In doing this, he will use its energy to power his space fortress to continue his galactic conquest. After this, she, Lilac and Milla all agree to help Torque reclaim the Kingdom Stone and stop Brevon's plans before it's too late.
Negotiations in Shang Mu
The next morning, the Royal Magister, having been informed of the theft by General Gong, sends Lilac's group to recover the Stone from Zao. Upon arriving, they are distracted by Spade, who reveals his true allegiance in the Kingdom Stone theft was to his brother Dail and not Zao, and Serpentine, who serves as Brevon's chief enforcer. After finishing off the Robopanther from outside the Shang Mu mall they arrive too late once again as Dail and Brevon's forces effortlessly steal the Kingdom Stone from Shang Mu and fly off. They meet with Mayor Zao of Shang Mu and try to convince him to work with Shang Tu and the Magister in recovering the Stone by appealing to his desire for glory. He eventually agrees, sending them off in one of his airships in the direction of Shang Tu. Shuigang's airships attempt to intercept and shoot down their airship, but are beaten back.
On the Run from the Law
The group finally returns to Shang Tu to report their findings, bringing along a piece of one of Serpentine's machines, made of materials uncommon on Avalice, as evidence of an otherworldly plot. Neera Li, having been suspicious of Lilac and Carol from a few nights prior, instead accuses the pair of being behind the Kingdom Stone's theft, pointing out Lilac and Carol's pasts as professional thieves and how they always seem to be around when trouble strikes. Although skeptical of their guilt, the Royal Magister decides to have them detained for further questioning. Milla was suddenly brought back in by Neera after her failed attempt to escape, then Lilac convinces the Magister to let Torque alone go by falsely pleading guilty to Neera's claims. They then effortlessly break out of the jail themselves in an attempt to catch up to Torque, but are too late once again; Torque is captured by Syntax and the Absolution and is whisked away. The girls give chase, only to be confronted by Serpentine and his Robogunship.
With the Kingdom Stone and their friend in enemy hands, and no leader on Avalice to call an ally, the stress causes the remaining trio's relations to break down. Lilac wants to rescue Torque and help him complete his mission as it's the right thing to do, while Carol just wants to lay low and spend her life with her best friend rather than keep risking her life, and storms off. Convinced by Carol's pleas that she's been recklessly endangering her friends, Lilac sends Milla off to go with Carol, and heads off to save Torque herself from Brevon's nearby base.
Turning to the Red Scarves
Meanwhile, Carol was sitting alone in the rain, until Milla came and told her that Lilac is gone. Carol knew she would go through with saving Torque, and she resolves to help her. Later, Carol and Milla enters the Red Scarves' Hideout in the sewers of Shang Tu. Upon making it past the multiple traps and enemies, the two confront Spade and convince to help them save Lilac and Torque from Brevon, aka, his Father's killer. The three then storm the base and rescue Torque, and then Lilac, who had her ponytails cut off and had been tortured by Brevon, who manages to catch all of them in the torture room. However, the base suddenly begins to implode, and the heroes make their escape, but ends up separated from Lilac in the ensuing chaos.
Uniting the Two Armies
Carol, Milla, & Torque searched for Lilac, until they met up with General Gong and the Shang Tu army, who were heading to stop Mayor Zao and the Shang Mu army from attacking Shuigang. Carol suggests that they come along to try and presuade Zao to call off the attack. Gong refuses the idea, but then he quickly changes his mind and goes after the Shang Mu army along with the trio. At the Snowfields, the Shang Mu and Shang Tu armies are about to attack when the Holodragon suddenly appears, Lilac was seen on it, and Carol, Milla & Torque were all glad about her return.
Assault on the Dreadnought
The combined armies quickly move against Dail and Brevon's army, which has also begun its advance as Brevon prepares his fortress for takeoff. While Carol, Milla and Torque fight on the ground with Zao's tanks, Lilac uses the Holodragon to engage Syntax in an aerial battle, ultimately destroying her. At the foot of Brevon's fortress, the team confronts Dail, destroying his final mech. The mad prince attempts a final attack, but is stopped by Spade. As Spade goes to face off with his half-brother, Brevon announces that his fortress is ready for takeoff, and the team move for the final battle.
Inside the fortress, the team faces off against the full brunt of Brevon's army, including a rebuilt Syntax, and a final battle against Serpentine, who mutates into a giant monster before being subdued. In a final act of desperation and cruelty, Brevon captures Milla and turns her into a bio-mechanical monster and has her attack the team. They are then forced to subdue her. Milla survives, but is left in a coma. Enraged, Lilac and Carol storm Brevon's final defenses and confront the alien overlord himself.
A New Beginning
After a fierce, chaotic battle, Brevon is ultimately defeated, but the Kingdom Stone is destroyed in the process. The team quickly escapes Brevon's fortress just before it crashes into the frozen wastes. Back at the base camp, Milla awakens from her coma. Lilac is distraught over the loss of the Kingdom Stone and its energy, but suddenly the sky is lit up by swirling, crystalline energy. Realizing that this is the new form of the Kingdom Stone, the three kingdoms resolve to share the Stone's energy equally amongst themselves, bringing an end to the war. Torque then says his goodbyes to Lilac, Carol and Milla.
2 years have passed since the events of the first game, and soon, Carol, along with Lilac, Milla & Neera, will have to face off against Merga and the Bakunawa in order to save Avalice once again. At some point, She'll run into her sister, Cory Who tells her to stay out of her business, learning that her sister is working for Merga.