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Final Fantasy VIII begins as Squall duels with Seifer in a training session outside the Balamb Garden military academy. The two cadets scar one another's faces and are returned to Garden for treatment. Meanwhile, the Galbadian regime invades the Dollet Dukedom, forcing Dollet to hire assistance from the Balamb Garden branch of "SeeD", Garden's elite mercenary force. SeeD uses the mission as a final examination for its cadets; with the help of his instructor, Quistis, Squall passes its prerequisite and is grouped with Seifer and Zell. Seifer disobeys orders and abandons his team halfway through the mission, forcing Selphie to accompany Squall and Zell for the duration. After the mission, SeeD halts the Galbadian advance; Squall, Zell, and Selphie graduate to SeeD status; and Seifer is disciplined for his disobedience.

During the graduation party, Squall meets Rinoa, whose personality is apparently the opposite of his own.When assigned with Zell and Selphie to help her Galbadian resistance, Squall learns that a sorceress named Edea is behind Galbadia's hostilities. Under orders from the Balamb and Galbadia Gardens, Squall and his comrades—now joined by Rinoa, Quistis, and Irvine—attempt to assassinate Edea.Despite a nearly flawless execution of the plan, the party is detained. Squall's party also learns that Seifer has left Garden to become Edea's second-in-command.