Generation Bleu's headquarters are under attack by the shape-shifting being known as Truth - even though he sounds like a reject from Fullmetal Alchemist, this is no time to worry about such things...
As Truth continues to wreak havoc throughout headquarters, the powers that be have a number of concerns - not just for the IFOs and their pilots, but also for something hidden away within the depths of building... just when will organisations stop hiding their darkest secrets in the basement? As Truth does the rounds searching for, well, the truth, it seems that the depths of Generation Bleu isn't his goal at all - indeed, he's looking for someone rather than something, and he seems to find it when he comes across Ao about to escape in his IFO. Despite being shaken by Truth's knowledge of Ao's mother, he still tries to make good his escape in Nirvash, only for Truth to follow before showing what might just be his shocking true form.
Things take rather a strange leap from here, as we return to Okinawa and find many of the usual suspects there - with the island becoming a profitable haven on account of its Scub Coral, most ideas of resistance have vanished, and Naru is up to her usual tricks of sneaking around despite her illness. Even Ao is present on the island, taking Naru to see the Scub Coral... but is that really Ao? Of course not, as the "real" Ao appears and gives chase - this all seems to be in vein however, as Truth showing himself in his terrifying other form gives Naru the information she needs to decide to follow him, no matter what Ao tries to do. All of this seems like nothing but a nightmare as Ao comes around in a Generation Bleu hospital room, but unfortunately for him truth is equivalent to his dreaming fiction in this instance.
Although Truth's place within Eureka Seven AO still feels a little "off" within the show's world as a whole, he's certainly put to good use here in terms of shifting the focus of the series substantially - his place in the first half of this episode makes for some good explosions if nothing else, while the second half is disjointed and a little confusing initially before everything wraps around the shell of the story nicely to make for an episode that is ultimately satisfying. In fact, "ultimately satisfying" probably sums up Eureka Seven AO thus far quite nicely - it still needs to cement and solidify its ultimate goals even at this stage of the series, but everything it's done to move in that direction thus far has been enjoyable to watch so it seems to be achieving what it's set out to thus far.