Lalah's Dilemma is the fortieth episode of Mobile Suit Gundam. It first aired in Japan on January 5, 1980 and in North America on June 2, 2002.
Modifications have begun on the Gundam due to its inability to keep up with Amuro's reflexes, but it has been unable to resolve the problem. Bright tells Mirai that the Federation wants White Base to return to Solomon where work can begin on the Gundam. He thinks that Amuro's reflexes are so quick that its like he can see the future, although he doesn't think that Amuro is a psychic. White Base enters Solomon. An engineer named Mosk Han arrives, telling everyone to stop repairs on the Gundam as he has his men apply a magnetic coating to it. Mosk tells him he's applying a magnetic coating to help the Gundam move faster, although he doesn't guarantee anything.
At Granada, Kycilia is informed that Challia Bull has been defeated. She asks about her brother Gihren's plans and is told that the Granada and A Baoa Qu fleets, along with the Solar Ray system will work as their defense. At Side 3, a closed cylinder colony is being evacuated as it is being transitioned into the Solar Ray. The soldiers forcefully evacuate the residents while solar panels are brought to the colony. In Zum City, Gihren reports to Degwin, who calls Gihren an incompetent leader for evacuating an entire colony. Gihren shows Degwin a monitor showing Granada and A Baoa Qu as Zeon's last line of defense, believing there are 3 possible routes through which the Federation can attack. He wants to use the Solar Ray to attack the Federation as it tries these routes. Gihren also tells Degwin that he plans to keep the population down, keeping the superior races alive and under the Zabi family dictatorship so as to maintain peace. Degwin compares Gihren to Hitler. Gihren doesn't mind the comparison and believes a dictatorship the best way for humanity to move forward. He departs to A Baoa Qu.
Char's Zanzibar detects some nearby Federation forces and sends out its mobile suits and the Elmeth. The Zanzibar fires missiles at the Federation forces, successfully hitting multiple ships. Char says he will go out on the Gelgoog and asks Mulligan to provide covering fire. Using the Elmeth's bits, Lalah destroys a Salamis ship. A Zeon pilot is surprised at how advanced Lalah's fighting skills are already. As a result the Rick Doms retreat and move behind the Elmeth.
The Federation soldiers sense a strange resonance as the Elmeth's bits surround their ship. Char requests the Rick Doms to move forward, but the pilots believes there is no need with the Elmeth on their side. Lalah moves forward, flying over the Federation vessel, not being successful. Once Char's Gelgoog approaches however Lalah easily destroys the Federation ship. The Elmeth and mobile suits return to the Zanzibar. At Solomon, orders are given for the next mission, Operation Star One, whose mission is to attack the Zeon homeland. Numerous Federation vessels depart Solomon.
White Base remains at Solomon, its departure delayed. Mosk Han talks to Amuro, believing the magnetic coating will prevent it from overheating. Mosk Han requests the data on Amuro's next battle. White Base departs from Solomon. On the Zanzibar the Rick Dom pilots explain why they fought behind the Elmeth and claim that there is no need for common soldiers like them next to a newtype. Lalah and Char consent to the Elmeth fighting in front from now on. Bright orders the crew to eat before their next meal. Amuro tries out the Gundam, finding its functionality improved. Sayla talks to Amuro before heading out.
Char and Lalah arrive on Kycilia's Gwazine. Kycilia tells Char that he shall be joining her forces as the Zeon head to their defensive line. Kycilia complains about Lalah's attire, demanding she be provided a uniform. Char reports to Kycilia Lalah's success in destroying 2 Federation ships. Char thinks a newtype force should be formed. Kycilia says she looks forward to seeing Lalah in action. Amuro tries out the Gundam. Bright, watching Gundam, says he thinks Newtypes exist. White Base approaches a battle in front of them. White Base's mobile suits head out.
Amuro feels a sensation as if someone is calling him. He feels as if Char and someone else is nearby. The Gundam fires upon the Gelgoog and Lalah asks him to pull back. Char finds the Gundam different than it had been yesterday. Lalah tells Char that he is in the way, and shortly afterwards the Gundam blows off one of the Gelgoog's arms. Lalah fires upon the Gundam and approaches the Gelgoog. Lalah asks for Char to eject, but he doesn't think his mobile suit will explode. Char asks to grab onto the Elmeth during her attack. Lalah claims her head feels heavy all of a sudden. Amuro hears Lalah's voice. She tells him he is evil and is wanting to hurt Char. The Zeon forces retreat. White Base meets up with the other Federation forces, which have lost 4 vessels in one day due to Lalah's attacks. Char thinks of how complicated things will be if Lalah's headaches are caused by the Gundam pilot.
- In the censored version of the episode made for the weekday Toonami broadcast (which ironically would not air until years later), Degwin compares Gihren to "the Fascists" rather than explicitly mentioning Hitler, as he did in the original script and uncensored version.