Event Year: 1998

Sakura and her friends go spend the day at a new indoor water park, where Eriol causes the water to rise to dangerous levels. When Rika, who has trouble swimming, nearly drowns, Sakura uses the transformed Watery card to save her, risking being seen using her magic by everyone. However, it appears Eriol would have returned things to normal if Sakura was too late, making his motives unclear.

Sakura goes to a New Year's festival and notices that Yukito isn't around. Toya goes to check on him, discovering that he has not only collapsed from fatigue, but he's also beginning to fade from existence since Sakura's power, despite how strong it has become, is not enough to sustain Yue. Later at the festival, she receives a fortune from Eriol which he secretly made and enchanted, saying that she will begin to learn the "truth" in her "first dream of the year." That night, Sakura transforms the Dream card in her sleep and has a dream of the sky being blanketed by darkness emanating over Tsukimine Shrine, where she sees the silhouettes of Eriol, Spinel Sun, and Ruby Moon. When Sakura awakens to realize what she's done, she and Kero begin to suspect that they will meet the three silhouetted figures very soon.

Kero is almost positive that Toya knows everything about Sakura's secret, though Sakura dismisses his claims, saying Toya would make fun of her if he did. Toya, meanwhile, is certain that Nakuru is deliberately interrupting him while he tries to tell Yukito the truth about why he is always feeling fatigued. The two make plans to buy a Christmas present for their father, though Sakura senses Clow Reed's presence again.

Remembering his promise to Meiling that he would be her "fiancé" until he found someone he loved more, Syaoran calls her to tell her that he is in love with Sakura, though he is taken by surprise when Meiling arrives in Tomoeda for the day. While Meiling spends the day with her old friends, the group is attacked by a set of enchanted penguin statues at the playground.