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While the Allied Nations were still recovering from the war in Cosmo Land, the Black Hole Army had already recovered and has decided to launch a large-scale invasion on Macro Land. Along with the original Black Hole army's commanding officers (COs), four new COs were recruited, under the command of Sturm. Sturm orders each Black Hole CO to invade and capture each of the four continents controlled by the four other armies from the original game: Orange Star was to be taken by Flak, Blue Moon by Lash, Yellow Comet by Adder, and Green Earth by Hawke. Lash also invented several new war weapons like the Black Cannon and the Mini Cannons that were to be put to use in this invasion. The four allied armies must now work together to drive Black Hole out of their world once and for all.

Once the Black Hole troops are driven from the Allied Nations' continents, their COs convene in Black Hole territory, near Black Hole's base of operations. Here they fight Sturm, the mastermind behind the invasion. The final battle takes place in front of the Death Ray, a powerful new weapon guarding the entrance to a missile, which, if not subdued in time, would destroy half of Wars World.

The Death Ray is eventually destroyed by the COs of the Allied Nations, who manage to disarm the missile and corner Sturm. In an act of desperation, Sturm attempts to blow up the base and inflict damage on Wars World by self-destructing the missile. Andy attempts to stop Sturm to no avail. However, in a surprising turn of events, Hawke, second in command to Sturm, betrays his leader by killing him with Black Storm before the self-destruct is triggered. Hawke takes over as leader of Black Hole, and along with Flak, Lash, and Adder, leaves Macro Land with the few troops he has left.