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. Not knowing what Fox's intentions were, 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/Zelda joins your teams.
- 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, studied for weaknesses before the events of the Subspace Emissary.