Johan and Pheles in the very beginning for an unexplained reason have a kid, Justus.
Yuji's motives are finally revealed. The reason he wanted to create Xanadu was so the Denizens could have what they wanted, a world like the humans. Also, apparently Misaki City doesn't exist in the New World because it doesn't exist... "You can't copy what doesn't exist." He also wants Shana to restore Yukari Hirai's existence as she still has her torch. Lastly, he wants to go to Xanadu to tell something to all the Denizens who went.
Stupid fighting later goes on, Sydonay finally dies, and we for the first time the entire show finally hear Shana's signature line "Shut up! Shut up! Shut up!". Also, it finally happened, their love was understood. Yuji and Shana finally kissed, and completely understood each other. During their fight, we got a little character development which helped make the show better. It is also revealed, the unrestricted spell given to Yuji by Lamis has made him a real existence, he's no longer a torch.
Life goes on as normal in Misaki City afterwards, Yukari Hirai is back, Yuji's brother is finally born, and it seems everyone has forgotten about Yuji and Shana after they went to the New World. Lastly, seems a bunch of the Flame Hazes went to the New World for some odd reason, and Justus is being raised their by Wilhelmina and Rebecca.