Before Gray can finish casting Iced Shell, Natsu stops him with a punch to the face. Natsu equates dying to running away, but their discussion is interrupted by the temple realigning back to normal. This is the work of the mage Zalty, and Natsu decides to chase after him while Gray has a proper fight with Lyon. Gray first tries to reason with Lyon and reveals that Ul is alive as the ice, but it turns out that Lyon already knew that. Lyon then wounds Gray with an abdominal strike, but Gray keeps getting back up, and the two get into a physical brawl. Motivated by his memories of fighting with Natsu when they were young, Gray refuses to lose, and Lyon is eventually forced to rely on his magic. Gray is able to counter him though and eventually defeats him with a shot from an ice cannon. Natsu meanwhile learns that Zalty is using a kind of Lost Magic, and he chases the guy all the way to the cavern where Deliora is being kept. The temple being angled back to normal though means that the Moon Drip is once again working, and while Natsu is fighting Zalty, enough ice melts so that Deliora reawakens.
I have mixed feelings about this episode. While it was interesting enough seeing how his rivalry with Natsu motivated Gray (the shot of young Erza was nice too) and how his development post-Ul contrasted with Lyon’s, the actual battle with Lyon was a bit on the tame side. It’s hard to take the battles seriously when it’s clear that they’re watering down stuff, as I’m almost certain they did for the scene where Lyon casts magic into Gray’s stomach since there’s no blood. It’s a similar complaint I have when Bleach censors stuff, though this admittedly isn’t as bad as some of Bleach’s worst censoring offenses. At least the episode ended on a nice cliffhanger again. Speaking of which, I wasn’t surprised that Natsu didn’t let Gray use Iced Shell here, and based on the preview, it doesn’t look like he’ll let that happen next episode either.