Fairy Tail Episode 24 is the final episode of the Phantom Lord arc, and it delivers an emotional and satisfying conclusion to the conflict between Fairy Tail and Phantom Lord. The episode begins with Natsu facing off against Gajeel, the Iron Dragon Slayer, in a fierce battle that tests their limits. Meanwhile, Erza confronts Jose, the master of Phantom Lord, who reveals his true motive for attacking Fairy Tail: to capture Lucy and use her as a bargaining chip to get the Heartfilia fortune.

As the fight between Natsu and Gajeel reaches its climax, Natsu unleashes his Dragon Force, a powerful state that enhances his abilities and appearance. He manages to defeat Gajeel with a devastating roar of fire, but collapses from exhaustion afterwards. Gajeel, who is impressed by Natsu’s strength and spirit, admits that he was wrong about Fairy Tail and decides to join them in the future.

Erza, on the other hand, has a harder time dealing with Jose, who uses his Phantom Magic to create illusions and manipulate shadows. Erza is overwhelmed by Jose’s attacks and suffers severe injuries. However, she refuses to give up and summons her strongest armor: the Fairy Armor. With this armor, she is able to break through Jose’s defenses and deliver a final blow that defeats him.

With Jose and Gajeel defeated, Phantom Lord surrenders and withdraws from the war. Fairy Tail celebrates their victory and welcomes Lucy back to their guild. Lucy is touched by their loyalty and friendship, and vows to stay with them forever. The episode ends with a tearful hug between Lucy and Natsu, who promises to never let her cry again.

The episode also shows the aftermath of the war and the consequences for both guilds. Fairy Tail is praised by the Magic Council for defending themselves and protecting Lucy, who is revealed to be the daughter of Jude Heartfilia, a wealthy and influential businessman. However, they also have to pay for the damages they caused to the city, which amounts to a huge sum of money. Makarov, the master of Fairy Tail, decides to take responsibility and resigns from his position, leaving the guild in the hands of Erza.

Phantom Lord, on the other hand, is disbanded by the Magic Council for their crimes and violations of the guild laws. Jose is arrested and taken away by the Rune Knights, while Gajeel is left alone in the ruins of their guildhall. He is approached by Makarov, who offers him a place in Fairy Tail. Gajeel initially refuses, but Makarov tells him that he sees potential in him and that he can change for the better. Gajeel then agrees to join Fairy Tail, hoping to find a new purpose in life.

The episode concludes with a scene of Lucy visiting her father’s mansion, where she confronts him about his involvement in the war. Jude admits that he hired Phantom Lord to bring Lucy back to him, because he wanted to use her as a pawn in his business deals. He also reveals that he disowned Lucy when she ran away from home and cut off all ties with her. Lucy is disgusted by her father’s actions and tells him that she hates him. She then leaves the mansion, declaring that she has found a new family in Fairy Tail.