Contests of skill are held from 19:00-03:00 each night. Entering a Slaughterhouse tournament will consume ten minutes of time. If the player wins, they earn a reward. If the player cannot win, they must use Escape to flee. When losing a battle one will not only lose the ten minutes, but the time penalty for fleeing via Escape is also applied. Slaughterhouse matches do not yield battle spoils. Winning ten battles earns the achievement/trophy Queen of the Arena.
In the Champion's Quarter, next to the battle arena, Lightning meets a potion-peddling alchemist called Velno who makes an interesting proposition. Velno has made a fortifying tincture by mixing two deadly poisons, and she wants Lightning to test it out. It sounds dangerous, but the potion might prove useful in battle. Hint: You must free up a slot for the potion in your recovery items inventory.
Lightning receives a flask of the prototype potion that Velno has dubbed "Nektar." Apparently, Lightning is supposed to drink it as soon as she is hit with a status ailment. Once Lightning has tried the potion, she is to report back to Velno in the Champion's Quarter and let her know how it worked.
Velno's potion did not seem to do a thing. When Velno hears this, she presents Lightning with another concoction that she dubs "Nectar Mk II." This potion is an antidote, and should be used when Lightning is suffering from the effects of Poison. Once she has tried it, Lightning is to report back to Velno in the Champion's Quarter.
Velno's new potion actually worked. Delighted with her success, the alchemist mixes a stronger potion for Lightning to try. Dubbed "Mirakle Nektar," it is supposed to heal the soul itself. Lightning should drink it when she is afflicted with three or more status effects, then report back to Velno to let the alchemist know how it worked.
No more potion testing—Velno has a very different job for Lightning. Velno thinks that Lightning will make the perfect spokesperson for her new product, the Nektar of the Gods. Lightning is to fight in the Slaughterhouse, drink the potion in front of the crowd, then report back to Velno, who will wait in her usual spot in the Champion's Quarter.
A potion that makes you strong—and beautiful! Velno's shop is overrun with customers eager to snap up the latest potion innovation. The shop is raking in the gil, but for Velno, it is only a means to an end. Now she can stop worrying about money and return to her true passion: research into the nature of the physical and spiritual worlds.
In The Champion's Quarter stands the Slaughterhouse battle arena. Zoe, the owner, has given Lightning the go-ahead to fight in tonight's special match. The grand prize will be a gown that Zoe herself once wore on stage. But it isn't enough for Lightning to just win the battles – she has to do it with style and grace. In other words she must put on a show.
Lightning puts on a show worthy of her new fighting name--the knight of light--and receives the gown as her prize. At the same time, Zoe reveals that she, too, once trod the boards and starred as the savior. Even in a fictional show, the savior has the power to bring hope to the people. Now Lightning must change into her new costume and hurry to the Augur's Quarter where Sarzhak awaits her return.
Subsequent Rewards: 2300 gil, Max HP +40, Strength +5, Magic +5
After delivering the Fireworks to the Pyrotechnician Boss in the Augur's Quarter, Lightning speaks with the Director who asks her to get a garb for the night's play from the Slaughterhouse. Lightning must speak with Slaughterhouse Zoe, in the West area of Yusnaan, to sign up for the special matches. Winning all three matches completes the quest. After winning the matches, Lightning obtains the Midnight Mauve garb she can wear to play her part in The Song of the Savior.
In the Champion's Quarter, in front of the battle arena, Lightning encounters a man gripped by remorse. Tanbam is his name, and he broke an alchemic taboo to create an ensorcelled machine. Powered by Chaos itself, the machine has already slain many brave fighters. The only person who can stop it now is the Slaughterhouse's knight of light--but even for her, it is a tall order. Can Lightning defeat the dread machine Desmond?
The machine that Lightning defeated was actually a living automaton, inhabited by the soul of Tanbam's brother. He had made victims of countless fighters--but then he himself was a victim of Tanbam's grim experiment. The code of alchemic ethics strictly forbids the manipulation of people's souls. Lightning tells Tanbam that he has no choice but to bear the guilt of his crime. Paradoxically, this knowledge saves Tanbam's soul.
First Time Rewards: 4200 gil, Nickel Gear, Max HP +140, Strength +12, Magic +8
Subsequent Rewards: 6300 gil, Max HP +80, Strength +10, Magic +4
Tanbam, near the fenced area outside the Slaughterhouse, asks Lightning to vanquish an automaton he's built. Accepting the battle challenge, Lightning receives Desmond Notes. Desmond is invulnerable to status ailments, but should not prove to difficult to defeat. Winning the battle completes the quest.
It appears that one of the soul fragments is in Yusnaan's battle arena, the Slaughterhouse. Rumors are flying that a "special match" is being held with a most unusual prize being offered to the winner. Could that prize be the soul fragment? There's only one way to find out...
Lightning emerges victorious in the battle arena special match and claims the Fragment of Courage as her prize. One question lingers, though. How did Zoe of the Slaughterhouse get the fragment in the first place? Could she have looted it from the body of a losing contestant?
When Lightning wins a battle the cheering crowd chants the traditional "Victory Fanfare" battle theme.
The enemy opponents in the Slaughterhouse have slightly different names than their traditional counterparts (likely to indicate that defeating enemies in the Slaughterhouse is not connected with the Last One gameplay mechanics):
Anubys = "Anubys of the Abyss"
Cyclops = "Cyclops the Rage"
Fanatic = "Infernal Fanatic" (listed as "Martyr" on the Battle Schedule)
Gremlin = "Ghost Gremlin"
Gurangatch = "Iron Wall Gurangatch"
Niblet = "Niblet the Nibbler"
Personal Guard = "Evil Guardsman" (initially listed as "Royal Brigade" on the Battle Schedule)