You are now in Castle Town, where Cinderella's castle is located. Striking the streetlamps here will count toward Objective #23: Streetlamp Striker. After a scene ahead, you'll receive a story objective: strike the other four gears around the town in order to restore the bridge. A large chest on the path contains the Castle Town Area Map. The next battle ahead introduces Flutterings, flying Heartless that count toward Objective #2: Defeat the Flutterings upon defeat. Take note that this courtyard is a good spot to attempt Objective #14: Frozen Rail Ride; simply cast Blizzaga while facing the hill leading up to the save point and the fountain, and ride the rail that it produces to complete the objective.
Near the fountain, you will encounter your first Flame Core, whose defeat counts toward Objective #3: Defeat the Flame Cores. You can also strike the Flame Core with Blizzaga for Objective #16: Magic Advantage. Enter the menu after battle to equip some accessories on Aqua, obtained from the objectives completed so far. This will complete Objective #22: Trendsetter. Around the building to the right is a chest containing an Ether, as well as some more Flutterings. Backtrack and take a left turn to find a chest containing a Potion. Ascend the crumbling path past the chest, across rooftops and lampposts, to find a gear. Hit it with a combo to restore a part of the bridge.
Backtrack to the center of the area and ascend the northern path to the left. Up the stairs to the right is a path that leads underground. Before following it, take the steps to the left and jump across the rooftops to find a chest containing a Potion. Past this chest, follow the path upward to what appears to be a dead end. Look across to an overturned rooftop in the distance; while it may appear to be too far, Aqua can reach it with double flight, air slides, and even an air combo if necessary. Near this rooftop are some floating bricks, which Aqua can hop across to reach one final overturned building. Upon stepping onto it, the camera will give you a view of the castle, and Objective #24: Top of the Town will be checked off. After the detour, return to the chest and drop off onto the underground path to find the next gear. Across from the gear is a chest containing an Ether. Combo the gear and defeat the Heartless that spawn. You should now have two gears remaining. Backtrack and take the northern path to the right this time, where you should find a Flame Core and the fourth gear. From here, turn around and jump onto the rooftops to the left. Follow the crumbling path to the left to find the final gear.
Before crossing the newly-repaired bridge to the Castle of Dreams, there are a few more things to do here for the sake of completion. First, look at the sky in the direction of the Castle of Dreams. Eventually, a meteor shower should start, completing Objective #25: Starlit Wish. The remaining collectibles are available only on a New Game+ file:
- From the fountain, follow the northern path to the left. Near the entrance of this area is a chest containing the Virgo Relic. This is one of twelve relics required for the secret boss rush.
- From the fountain, follow the northern path to the right. A chest containing the Ares Relic should be in plain view, between some crates along a wall to the right.
- Follow the path detailed earlier to get to the "top of the town." At the end of this path is a chest containing the Sagittarius Relic.
- From the fountain, follow the path to the left, leading to one of the gears. When you reach the lamppost that Aqua can hop across, drop off to find a chest containing the Aquarius Relic nearby. This should be the final chest required for Objective #37: Treasure Hunt in the Castle Town.
- From the fountain, jump onto the roof of the building to the left, and from there, jump onto the roof of the building beside it. This building should have a steeple with its own rooftop on it. On the shingles of this rooftop is the image of Cinderella's glass slipper, which can be examined for Objective #38: Lingering Memories in the Castle Town.
Once everything has been collected, cross the bridge for a boss fight against the Demon Tower. This boss fight has a relatively simple pattern to it: attack it when the Shadows' eyes are in their default yellow state, and block/dodge its charges when their eyes turn red. Don't forget to use magic and Shotlock to attack from a distance. Defeating the Demon Tower concludes the Castle Town episode.