Crono's party returns to Terra Cave with Melchior after the Mountain of Woe collapses into the water. Schala arrives with Janus to tell them that she has turned her back on Zeal. But then Dalton arrives and kidnaps her to take her back to Zeal.
Fearing that the Mammon Machine will awaken Lavos and bring destruction upon the world, Melchior gives Crono the Ruby Knife, the only weapon capable of destroying the machine. Crono's party then takes the Skyways and Land Bridges back up to Zeal Palace where they confront Dalton. After the battle and Dalton is defeated, he opens a portal and travels to the Ocean Palace deep under the water. So Crono's party follows him through the portal.