The story of Fairy Tail is all about the tight bonds of family and friendship. Indeed, every member of the Fairy Tail guild considers the other members to be like family. In some cases, this is literal: the guild's master, the elderly Makarov Dreyar, has a grandson, the electrically-powered Laxus. The two didn't always get along, however.
Not long after the battle between the Phantom Lord and Fairy Tail guilds, the mighty Laxus returned, and he was not in the mood for fun and games. Makarov was dismayed to see Laxus in a very dark state, but deep down the two were still close -- and they would prove it in later story arcs.
Laxus Dreyar Must Decide Between Domination and Family
When Laxus first appeared, he was like a darker version of the powerful wizard Gildarts Clive, a wandering S-class mage who was somewhat estranged from his biological relatives. During this time, Laxus cared little about who was family and who wasn't -- in his eyes, only the strongest should remain in Fairy Tail, and the weak should be exposed and weeded out. That viewpoint put him at direct odds with his grandfather Makarov, who embodied Fairy Tail's notion of strength through unity. This wasn't the first time the two had been at odds, either. Years ago, Laxus had protested when Makarov exiled the boy's father, Ivan, from the guild. Ivan went on to form the Raven Tail guild, and Laxus was still bitter about his father's banishment. Now, it was time to even the score.
But not so fast. Laxus organized a Fairy Tail civil war but eventually lost, personally facing defeat at the hands of Natsu Dragneel. Now he and his grandfather were in total opposition, with Makarov dismayed by his grandson's actions and Laxus humiliated in defeat. Makarov's faction achieved victory through Natsu, but his familial relationship hit a low point. He had to teach his grandson a lesson, and he tearfully but resolutely declared Laxus' banishment from the guild. Laxus understood, and it was clear that he was already regaining respect for his grandfather.
Laxus wasn't just saving face by accepting his banishment maturely. He had been impressed with Makarov's faith in his guild, and Makarov silently returned the favor by making a certain gesture during the Fantasia parade. It was the same hand gesture Laxus used to make as a boy, showing that Makarov still had faith in his grandson. This allowed Laxus to take his leave on relatively good terms, and his relationship to his grandfather (and the entire Fairy Tail guild) would soon take an upward turn.
Reunion On Tenrou Island: Laxus & Makarov Mend Ties
For a time in Fairy Tail, Laxus wandered the wide world of Fiore on his own, though little is known of these adventures. Meanwhile, the Fairy Tail guild's strongest members arrived on Tenrou Island for a test. That was when the mighty dragon Acnologia struck, along with the Grimoire Heart guild led by Hades. Natsu, Lucy, Gray, Erza and the others fought back as hard as they could but needed help, and they got it when Laxus returned at last. Makarov was shocked to see his grandson return and had a less-than-warm welcome for him, but the two were ready to reconcile all the same. He then demanded that everyone leave him alone to face Hades. Laxus disobeyed, but Makarov was touched that his grandson was so intent to remain by his side. The electric warrior helped defeat Hades and was finally welcomed back to the Fairy Tail guild.
Things were still a little awkward between grandfather and grandson, but that was taken care of during the Grand Magic Games Tournament arc. Laxus, motivated to prove Fairy Tail's family-based ideology was superior to Ivan's manipulative ways, defeated his cunning, selfish father in single combat. By now, Laxus had proven himself a true guild member to everyone, most of all Makarov, proving that even the bitterest feuds or rivalries can't stand up to the bonds of family and friends in Fairy Tail.
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