Zodac, Cosmic Enforcer summons The Sorceress (a.k.a. Teelina) to The Hall of Balance. The newly formed Council of Avatars has been convened, with Zodac appointed as Counselor. The Council of Avatars is comprised of both good and evil creatures from all seven universes. Only those possessing the most mystical wisdom in either the arts of good or evil are invited to sit upon the Council. Upon entering The Hall of Balance, the feathered garment of the Guardian of Greyskull disappears, leaving Teelina in the same peasant's garb she wore when she first entered Castle Greyskull. Teelina is greeted by Zodac, as well as an old friend of hers from the province of Grondaleth whom she had not seen in many years. Zodac reveals to Teelina that the balance of good and evil has been upset by the defection of one member of the Council – a being by the name of Nefari Coagula, High Chronomantress of the Planet Seditia. Once a powerful magician on the side of goodness, Nefari has changed her alliance and turned to evil. Her betrayal has tipped the scales in favor of evil, but the laws of the Council have forced Nefari to pay a heavy toll. Not only is her time on the Council limited, but her very immortality has been stripped away. While she remains, however, Teelina is offered the task of resetting the balance of good and evil by joining the Council until Nefari’s time has passed. Teelina accepts, on the condition that she is allowed some time on Planet Eternia to train her daughter Teela as the temporary Guardian of Greyskull. Zodac agrees on the condition that Teelina refuses to interfere in Eternian matters while she is on the Council. Both Zodac and Teelina are aware that the time for Teela to completely fulfill her destiny and find out the true identity of her mother has not yet come.
Horde Prime is informed of the imbalance of The Council of Avatars when he is invited to join. The disturbance has caused a rift in the hearts of the Eternian people. Horde Prime declines the invitation and instead uses the opportunity to send an enormous battalion to Eternia, hoping to capitalize on the social turmoil. Horde Prime relieves Mantenna, Modulok, and Scorpia of their service to Governor Hordak and re-assigns them to Eternia to lead the attack. On Planet Etheria, the Great Rebellion’s efforts against the tyranny of The Horde over the past year seem to have been in vain. The Crystal Falls and the Kingdom of Mysticor have both fallen to Horde rule. Princess Mermista and Empress Frosta are brutally tortured and held for ransom at The Crystal Falls. When Hordak threatens to attack the often overlooked Kingdom of Snows and the underwater Kingdom of Salineas, his proposals of surrender to Frosta and Mermista get dangerously tempting. Hordak dispatches Dragstor to tell Frosta’s subjects his terms of surrender, especially since Frosta may not live long enough to accept them herself.
On Eternia, Lord Skeletor's minions begin to get desperate in their failure to conquer the planet and search the world for more recruits. Trap-Jaw and Evil-Lyn attempt to rescue Faker from the depths of the Abyss in front of Castle Greyskull. Skeletor and King Hiss’ aggravation of each other's constant failure to defeat He-Man culminates to a vicious duel at Snake Mountain. King Hiss leaves Snake Mountain with his Snake Men to reform The Serpentine Army. Hiss leaves Skeletor with the impending fear that his slave of many years gone by will soon return, a being so powerful that even Horde Prime himself was unable to defeat him when he first showed his fearsome head to the seven universes. Kobra Khan follows Hiss and the Snake Men away from Snake Mountain, after giving once last glance to Evil-Lyn, Beast-Man, and the other allies he had made during his years of service to Skeletor.
King Randor gets increasingly upset with Prince Adam's apparent childishness. Adam constantly disappears whenever He-Man must help out a villager whose wagon had rolled away or when a dam breaks. Most importantly, Adam disappears whenever the Kingdom of Eternos is under attack. King Randor, torn by his love for Adam but fed up with his son’s feigned irresponsibility, makes a decree that none of his subjects will soon forget: He exiles Adam from the City of Eternos until he can prove his worth as a prince. Queen Marlena reluctantly accepts Randor's decision, knowing deep down that one day her son will return.
Teela, Captain of the Royal Guard is granted leave to train as Acting Guardian of Greyskull under the tutelage of The Sorceress. Teela receives her cobra head-dress and Serpent Staff for the first time. The Sorceress leads Teela down the hallowed halls of Greyskull, teaching her of ancient rulers, guardians, spells. . .and prophecies. The Attak-Trak and other lab equipment belonging to Man-at-Arms (a.k.a. Duncan) start to malfunction. An eclipse lasts seven days, robbing the crops of their precious sunlight. Freshwater lakes turn stagnant. Even Orko's magic begins to work properly.
The breakdown of the Royal Family and the absence of He-Man and Teela give Skeletor the openings he needs to launch light, yet relentless assaults on Eternos.
Shadow Weaver casts a spell to make Sea Hawk increasingly aware of the affections of an old ally: Force-Captain Catra. Adora notices Sea Hawk getting enticed by Catra’s charms. Shadow Weaver casts a spell to try to make Etheria’s three moons fly out of orbit and collide into one another, thereby destroying Bright Moon’s main source of power forever. Catra commands Storm to distract the Rebellion while the moons drift toward each other. As Storm takes to the skies, thunder clouds appear in his wake, blocking out all moonlight. Storm summons lightning bolts to damage the walls of Bright Moon. Catra, Entrapta, Grizzlor, and Clawdeen press the land forces against the weakened castle. Queen Angella and Princess Glimmer lead Bright Moon’s resilient guards against the advancing Horde strike force.