When the Heroes of Light return to Horne and find all its people petrified, they are met by representatives from the Baneful Magick Investigation Unit of Liberte, who offer to take the heroes to their town for their safety. Jusqua and Aire accept, thus parting ways from Brandt and Yunita.
Although Jusqua is content with doing nothing, Aire thirsts for adventure and treasure, and after exploring the town and learning that the young Apollo's parents have been kidnapped by the local pirates, she takes her reluctant companion along to save him. In doing so, Aire frees a fairy of Arbor, Lilibelle, and becomes a friend only Lilibelle is visible to. Aire also hears of the mysterious whirlpool that appears in town at night, and once again, drags Jusqua with her in search of treasure. At the end of it all, Jusqua is fed up with traveling with Aire and leaves. Aire opens the treasure and is promptly sent back to Liberte as a cat.
Unable to speak to humans, Aire take's Lilibelle's suggestion to visit the Queen of Arbor for a solution, and goes solo. It is only after Aire has departed that Jusqua realizes he must help his feline companion, and after being met by a cat he mistakes for Aire, Jusqua travels north to Urbeth.
After being sent a decade into the past, the party travels to Liberte and meet a young Pione, who is struggling on his design for the annual Glassworks Fair in Liberte. The party travels to the Animal Burrow and find Lilibelle trapped in a spider web. The party frees her and takes her to Liberte. After the party returns to Liberte, Pione notices how the fairy inspires him to work on his next masterpiece for the fair and Lilibelle agrees to help Pione. The next day the party learns that Captain Drake and his Pirates had stolen all of the artworks and kidnapped Pione and Lilibelle.
Inside the Pirate's Hideout, they find the possessed Captain Drake attempting to kill Lilibelle, but the party interrupts just in time. The party goes to the bottom level of the hideout and obtains the Rusty Compass. After party returns to the museum in Liberte, they use the compass and awaken the legendary Cetus. The party takes the Cetus to sea and they are forced to face Leviathan. After defeating Leviathan, the city of Liberte is finally at peace.
"Liberte, the Capital of Art" (芸術の都リベルテ,Geijutsu no Miyako Riberute?) is the background theme played during the day. There is also a "nighttime" (夜,Yoru?) version. Both tracks can be found in the original soundtrack as Tracks 17 and 18 respectively, and are composed by Naoshi Mizuta.