Finding out that there was one more S rank classic Yokai on Popstar, the Frog yokai Toadal Dude, a frog that became a Yo-kai after 100 years of living in a cool fashion, they group make a u turn and head back to Popstar. But things had changed dramatically as all of it was covered in metal and technology from the Haltmann Corporation in order to mine Popstar of all its resources.
Teaming up with Kirby once more, they fight their way through Haltmanns defenses, as they have teamed up with the Science Guild Steel Genius, run by the cold thinking Reuniclus. Many of their projects involved Pokemon from the Alola Region and even cloning. This was evident when Hope threatened Reuniclus, but Reuniclus ignored the threat and plucked a hair from Hope before teleporting.
After passing many robots, Susie and even Kaima possessed classic Yo-kai, they soon approached Haltmann himself. After a struggle, Haltman decided to tap into the power of Star Dream, their advanced AI that prompted their takeover of Popstar, but then out of nowhere, Metal SOnic used Stardreams systems to repower himself and transform back into his Metal Overlord form. But this was a fatal mistake as Metal was overcome by the long dormant Daemon, who had transferred part of him mind into the Azran’s technology, which Haltmann took.
As the heroes kept Gokai busy, Sonic teamed up with Kirby as he replicated the Halberd to better fight. Together, they defeated Overlord Daemon and Gokai was banished from the Kaima Execs. Not only was Popstar safe, but the last of the Demon Lord’s influence was wiped away from history for good.