Sonic and Tails head to the Grand Carnival in the city of Sequin, believing that the thief who stole their Chaos Emerald will be there to retrieve another on display.

While being there, The quartet is then interrupted by the announcement of the Celestial Troupe, acrobatic artists that have an act to entertain the guests. A protective shield is placed around the emerald during the performance, though Rouge still comments it would make a great distraction. During the next part of the Troupe's traipsing act, smoke erupts, the performance goes awry, and someone emerges from the fray with the emerald. The costumed figure quickly introduces as Lunar, Master thief, and hightails away with the emerald, expertly maneuvering through the security.

Lunar starts their grand escape, Sonic, Tails, Shadow and Rouge head after them.