Fairy Tail 100 Years Quest episode 3: Touka's true identity revealed as Natsu and team suffer a total loss

Episode three of Fairy Tail 100 Years Quest came out on July 21, 2024. The episode revealed more information on the Water Dragon God, Mercphobia, and how he wants to be sealed to avoid any destruction of his people or Ermina. He reveals how his powers were taken away by someone known as the White Wizard.

Back in Ishgar, fans meet Jellal who is traveling and meeting with various guilds in search of Touka, who is now a member of the Fairy Tail guild. Upon receiving information on the whereabouts of Touka, Jellal reveals the truth about her identity and of how she is one of the most powerful mages on par with Zeref.

Fairy Tail 100 Years Quest episode 3: Natsu and team meet the Water Dragon God, Mercphobia as Diabolo escapes

Mercphobia, as shown in Fairy Tail 100 Years Quest episode 3 (Image via J.C. Staff)

Episode three of Fairy Tail 100 Years Quest continues where episode two left off. Descending into the parted ocean, Mercphobia demands that those harboring ill intentions towards him leave. Unfazed, Kiria prepares to battle the Water Dragon despite Madmole’s hesitance. However, the two Diabolos members are forcibly teleported away by Black Ash.

Still skeptical of the Fairy Tail wizards’ intentions, Mercphobia listens as Natsu explains Elefseria’s quest. Mercphobia reveals he was previously challenged by assassins sent by the Law Dragon to seal him. Acknowledging Team Natsu’s peaceful approach, Mercphobia invites the group to his temple.

Mercphobia brings the Fairy Tail wizards to the Water Dragon's temple (Image via J.C. Staff)

Within the Water Dragon’s Temple, Mercphobia showcases underwater facilities designed to support the residents of Ermina Town and a watchtower for spotting shipwreck survivors.

However, he also shares his dark past of killing humans until meeting his assistant, Karameel, a human girl he grew fond of. Despite his contentment, Mercphobia admits his powers have become uncontrollable, causing the town’s unnatural submersion. He requests the Fairy Tail wizards to kill him to save the citizens, but not before he corrects his most critical error.

Fairy Tail 100 Years Quest episode 3: Diabolo returns as they now set their eyes on devouring the White Wizard

Skullion Raider, the Corpse Dragon Slayer as shown in Fairy Tail 100 Years Quest episode 3 (Image via J.C. Staff)

On the Diabolos ship, Kiria complains about the wasted effort to find Mercphobia. Skullion explains his actions by identifying Mercphobia as the false Water Dragon. Meanwhile, at the Blue Pegasus guild, Ichiya and The Trimens welcome a visiting Jellal. Jellal inquires about Touka’s whereabouts but leaves when they cannot provide further information. Jellal warns the guild members to keep their distance from her, without revealing his suspicions.

Elsewhere, Gajeel, Juvia, and Lily continue observing Touka, even stalking their new guildmate. Levy attempts to dissuade them but leaves in frustration after a disagreement with Gajeel. The group follows Touka to Natsu and Happy’s home, back to Magnolia, and her house, discovering she now lives next door to Lucy. Their investigation ends abruptly when Gajeel and Juvia fall off the two-story building, a scene witnessed by an irritated Levy.

Diabolos reappears at the Water Dragon's temple (Image via J.C. Staff)

In Ermina, Team Natsu asks Mercphobia about his intentions. The Water Dragon explains his powers were stolen by a mage called the White Wizard and plans to use his magic to revert Ermina to its original state, with Natsu agreeing to help. However, Skullion, Kiria, and Madmole arrive, overhear the conversation, and decide to track down the White Wizard to steal the Water Dragon’s magic for themselves.

Fairy Tail 100 Years Quest episode 3: Touka's identity is revealed to be the White Wizard while Diabolos completely wipes out Natsu and team

Jellal meets Mermaid Heel guild's Kagura (Image via J.C. Staff)

Jellal seeks Kagura’s help in locating Touka. Kagura instantly recognizes Touka as Fairy Tail’s newest recruit, shocking Jellal. He reveals Touka is the renowned White Wizard, alive for over a century and possessing magic power rivaling Zeref.

Demanding the Diabolos members to leave his palace, Mercphobia sends a water attack toward them, but Skullion disintegrates it. Skullion restrains the dragon, prompting the Fairy Tail wizards to retaliate.

While Lucy and Wendy tend to Karameel and Mercphobia, Gray and Erza face off against Skullion and Kiria respectively, while Natsu knocks Madmole out of the ocean. However, Natsu's motion sickness renders him ineffective against the armored dragon slayer, who tosses him onto the Diabolos ship.

Erza faces off against Kiria (Image via J.C. Staff)

During their fight, Kiria cuts away Erza's strength, leaving her defenseless. Despite Wendy and Lucy's efforts, Kiria overwhelms them, disabling Mercphobia, Happy, and Carla as well. Gray battles Skullion, who turns the sea to ash and disintegrates Gray. Meanwhile, Natsu is defeated by Madmole, leaving all the Fairy Tail wizards knocked out.

In Magnolia, Gajeel is frustrated with the investigation of Touka and Levy's irritation. The episode ends as Jellal approaches Touka on the streets, addressing her as the White Wizard.