The Story continued from New Mutants Special Edition #1....

Kitty has a nightmare, which Rachel determines is actually a sending from Illyana, and the New Mutants and Storm are in trouble. They suit up, and Phoenix shows off her new costume with Phoenix-emblem. Cyclops zaps them all with Arkon's lightning bolts and they travel to Asgard.

Magma is having a daydream about how things used to be at Xavier's, which Cannonball wakes her from and we discover she is now a faerie! They are separated from the rest of the New Mutants, and helping Eitri the smith make a hammer to present to Loki - hopefully allowing them to expose him publicly, and thus thwart his plan. Eitri also gives Cannonball magic armor and sword.

The X-Men arrive in Asgard to see some trolls attacking a wolf. They rescue the wolf, only to be greeted by Hela. The goddess of death specially greets Phoenix as her mother's daughter, and Child of Light and Darkness.

Elsewhere Cypher, Illyana, Rahne, Dani, and Karma watch Warlock following Storm in eagle form return to Loki. Loki notices Warlock as out of the ordinary, and shoots him with an arrow, causing him to crash. Dani and Cypher go to aid him. We also discover Loki has woven magic, lies, and Storm's desire to regain her powers into control over her.

The X-Men split-up, half to enter the city of Asgard, and the other half to follow the wolf-prince in search of his beloved, Rahne. Wolverine, Kitty, and Rachel are chosen to enter the city, the rest after the wolf-prince.

Dani retrieves Sunspot from a bar, and begins to exhibit unusual power to cow hardy warriors. When the three of them (including Cypher) catch up to Warlock, Warlock goes berserk at the sight of Dani, and flees with Cypher in tow.

The X-Men team following the wolf-prince succeeds, only to be ambushed and defeated by Loki. Loki sends Rahne and the wolf-prince, bound by magical collars, to find Magma with a troupe of Rock Trolls. The X-Men try to escape, and Rogue almost defeats Loki, but the arrival of Storm turns the tables.

In Asgard city, the infiltration X-Men team finds Cannonball and Magma, followed by Dani and Sunspot. Suddenly they are ambushed by Rock Trolls, who grab Magma and retreat, but not before Cannonball frees Rahne. Also aiding in the battle is Warlock/Cypher who swoop in as the Enterprise. Wolverine gets badly poisoned in the battle.

The banquet begins, and the free X-Men and New Mutants are mostly in attendance. Elsewhere, those not in attendance: Kitty, Rahne, and Cannonball; free the other X-Men just after Karma knocks out Illyana and herself. Back at the banquet, Loki starts his speech-making as Storm arrives, and the X-Men suddenly attack. Storm is given the hammer by Loki, and blasts Wolverine. His courage under her assault finally convinces her that he is the real thing. But then Hela appears to claim his soul since he is near death, but Dani opposes her and the X-Men offer battle - she flees. Storm attacks Loki but is repulsed. Then Kitty gives Loki an ultimatum - give up or the X-Men disperse and spread the tale of Loki's perfidy all over Asgard, ruining his aspiration to rule it. At the end, the X-Men take the 'return everything to the way it was' deal, and go home, with the exception of Brightwind who does return with Dani.ere's No Place Like Home

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