Sora and Harry start their year with an interesting dream, but they both know it's more than that. Everyone seems to have a bad feeling, but they do their best to think of other things. During the banquet, a food fight ensures. Sora admits to the school that he's crushing on someone, though he won't tell anyone who it is.
Afterward, Sora runs into Riku for the first time and tells him a bit about his dream. During that time Aerith and Cloud meet again, and they find a sort of romance.
Sora, Kairi, and Riku have a talk about the aforementioned bad feeling. Riku and Sora run into each other a few times, though neither of them speak of Sora's crush. When Kairi runs into Sora alone, Sora tells her who his crush is, and Kairi finds herself heartbroken. Roxas consoles him.
However, Roxas is having his own little dilemma. Axel and Namine speak in private, both revealing that they have feelings for Roxas. Axel approaches Roxas, and it seems that the same feeling is mutual between them. Kairi and Namine have talk about heartache.
Romance aside, Riku and Roxas have a dream much like Sora and Harry's. Kairi and Namine also have dream, though the one they share is much different than the other's.
Professor Lupin teaches his class about Cerium Tricanthus. Professor Wakka teaches his Care of Magical Creatures class about unicorns. Professor Tidus has his Flying class race. While two of the professors have confidence, Tidus is haunted with the thought that he doesn't make a good teacher. Lupin hires Riku as his teaching assistant, though Riku finds himself questioning Lupin's consistent "sickness."
Meanwhile, Cedric Diggory tries to plan a non-official quidditch game for the first trip to Hogmeade. He tries to train Sora so the boy can join the fun, and perhaps join the team this year, but sadly Sora isn't getting enough sleep to play much. Cedric finds himself in a tight situation when he can't help Sora's nightmares (As they continue even after the one he had with Harry) and he seeks help from the Ravenclaw, Cho Chang. She appears to be able to help him, and while the two of them steal ingredients from Snape's cubbard, they find that each of them might have more feelings for each other than being just 'partners in crime'. Cedric musters up the courage to ask Cho on a date, and she accepts.
With that in mind, the gang heads to Hogsmeade for dates and a quidditch game! Riku and Sora confess to each other how they feel, and Kairi appears to get over Sora and find some comfort ( well, hehe, maybe romance) with a fellor Gryffindor, Seamus Finnigan. All seems to be going well, until everyone heads over to the shrieking shack to play some quidditch. First, not enough players are there. Then, at the peak of the game, their party is rained on when everyone suddenly finds Sora screaming. Everyones' attention flashes to Sora, and then to the hoizon, where they find a horrifing site.
Dozens of Deatheaters and Nobodies are making their way toward the field, and one has his/her wand aimed right at Sora.
A battle has begun.