Alice is the spirit of a doll that was corrupted by the Doll Chimera card's negative energy after an Obelisk student ripped the card, calling it useless. Because of the card corrupting her, Alice developed a hatred for all duelists.
When the episode begins, Judai Yuki (Jaden Yuki in the English dub) and his friends see their Slifer dorm nice and clean and they encounter Alice. She acts nice and sweet and it caused Kenzan to fall madly in love with her.
Later that night Kenzan disappears and Judai goes out to find him. He finds Daichi Misawa (Bastion Misawa in the English dub) unconsious and was previously trying to find out who Alice was, claiming to have seen her before. They find Kenzan who was kidnapped by Alice to lure duelists to her so she could plunge them into darkness. She begins to duel Jaden while she sacrifices her life points and cards to summon Doll Chimera, but her anger starts fading when she sees Judai's cheery personality and begins to have fun. She succeeds in summoning Doll Chimera but Judai is able to defeat it, freeing Alice from its influence. She turns back into a doll and thanks Judai for freeing her.
The next day Kenzan starts sobbing that Alice was gone and that he had fallen in love with a doll spirit, ending the episode.