Ryu and his team end up getting to the final round, which is a fight against Garr. Ryu fights Garr, who effortlessly defeats Ryu and claims Ryu and his party as his prize for winning the Contest of Champions.
Ryu, Garr and another party member travel into the depths of Angel Tower. Just before entering the final area, Garr asks the other party member to leave and reveals the truth to Ryu. Garr then draws his spear and announces his intention to kill Ryu.
Ryu defeats Garr, but refuses to kill him. He suddenly turns into the Kaiser Dragon and flies off, ending the Child Era.
This battle is winnable and fairly easy. The easiest way to beat Garr is to use Ascension and using skills from the Dragon form you are using. The best choice would be the Miracle Gene, as Garr's attacks will do minimum damage and the Meteor Strike attack can defeat him in as little as three turns. Otherwise, use learnt skills and heal when necessary and Garr will go down in no time, though avoid using Fire as he is naturally immune to it.