The level immediately follows the events of Battleship Halberd Interior. Peach and Zelda are seen leaving the room in which they had been, despite having been told by Snake not to. Zelda, however, transforms into Sheik for the duration of the level (however, re-transformation into Zelda is still possible during gameplay).
After most of the level, the pair find themselves on the Halberd's deck, standing near the Combo Cannon. Suddenly, Fox's Arwing flies overhead, firing at and destroying the Combo Cannon. However, Peach was very close to it and covered her head with a small scream. Thinking the Arwing was attacking Peach, Sheik teleports up onto the front of the Arwing, punching a hole in the glass, making Fox lose control of it. Fox and Sheik then both fall onto the Halberd's deck and start to fight. Peach makes a sound, and both combatants turn to look at her. She holds up a cup of tea to Fox, who in confusion looks at Sheik. However, Sheik is already drinking tea herself. Fox accepts the tea and the group sits down.
With that, Peach and Zelda join the player's team.
- The music in the level is Meta Knight's Revenge.
- During the part with Fox vs. Halberd, Space Battleground plays.
- There is a Mizzo in the display room of the Halberd. This is the only place where one is encountered.
- There are ten enemies in the display room, which are Autolance, Buckot, Cymul, Mizzo, Nagagog, Poppant, Primid, Scope Primid, Fire Primid, and Roader.
- It is believed that in the display room, Meta Knight had captured the enemies and placed them in the display room, studying them for weaknesses before the events of the Subspace Emissary.
- When Peach and Zelda are on the other side of the Halberd, it looks like it's the same.
- The title of the stage is somewhat misleading, since much of the level takes place inside the ship.
- A Greap in the second area appears, but being only capable of doing its second attack, an aerial spin. Due to the enclosed space and limited hitstun, it is extremely easy to take heavy damage there.
- Even in the first playthrough, the player can choose to play as Zelda via Transform, despite the cutscenes picturing Sheik instead.