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The Faudo Arc is the third Arc in the series overall, and the last one in the anime. As it's name, the main goal of this arc is a huge ancient mamodo weapon called "Faudo", who was sealed in a gigantic tower. Lots of new characters were introduced in this Arc, such as Ted and Jido, Arth and Elly and Rein and Kyle (list in order of appearence) and new villains. The Faudo Arc was first released in the anime in April 3 of 2005 in the original version and in November 18, 2008 in the English version.
The anime almost followed the same plot as the manga, except for many differences in the end. This section tells the history as the manga, which is the original.
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The History started with the arrive of two non-usual visitors: Ted and Jido. Ted was designed to find a place to they sleep, and while looking for that place, the mamodo kid found Zatch playing alone in his "special base". Then the two mamodo quickly became friends, and Ted decided to sleep in Kiyo's house. During the night, another mamodo duo, Arth and Elly, appeared and invited Zatch and Kiyo to a fight in an attempt to "eliminate the Baou menace", but failed after Ted helps Zatch. Then on the following day, Ted and Jido leave the town in their search for Cherish. Then Kiyo starts searching about a mysterious structure that suddenly appeared in Human World (later revealed to be a sealed Faudo). A few days later, a robotic mamodo called Koral Q fights Zatch, thinking that would be very easy to beat him, only to be defeated with a Zaguruzemu-powered Bao Zakeruga and get his book burned. While going to train, Ponygon met another horse mamodo called "Karudio", who had challenged him and almost burned his book, and didn't only because he ran out the battle. Later, Zatch receives a letter from his long-time friend Rein, wishing he to burn his spellbook. Then Kiyo and Zatch went to the South Asia to find him. There, they met again the mamodo duo Purio and Lupa who had fight them much previously, and a new enemy called Rodeaux, both wanting Rein to join them. Both Rein and Zatch fight Rodeaux, who ends up getting beat. Zatch then burns Rein's book and keep his promise to become a kind king. More days later, a strange mamodo appears and starts doing pervert things, causing rage in Tia to rise and unlock the new spell, Chaajiru Saifodon. Almost burning Momon's book, Kiyo decides to take help from him. Kiyo kept with his search for the mysterious structure, when he receive a call from Dr. Riddles, who said that Wonrei and Li-en are missing, and then send to the student a draw of the last-seen people before Wonrei's disappear: Rodeaux and Chita. Suddenly, a doll-like creature appears and reveals to Kiyo the Arc's plot: A mamodo called Riou is summoning other mamodos to fully destroy the gigantic structure's seal, and to this Riou is releasing a "curse" into those mamodo's partners. Then he reveals the structure's real name and disappears in fire. Meanwhile, Arth and Elly fight Hougan, who easily got beaten. Then Kiyo begins to go ahead and find Faudo.
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With the help from Apollo, Momon and Zatch, the squad finally finds Faudo and enters him. However, an "Welcome Team" composed for Keith and Buzarai attacks them, making they split in Faudo's head-city. Zatch and Kanchomé fought both Keith and Buzarai and burned Buzarai's book, while Keith remained and retired himself. Ponygon and Momon were sent into another part, and fought Cherish, who was rescued for Wonrei. Then the full team is put together and they met Riya and Aleshie, a Mamodo and Human duo helping Riou. The team decides to enter Faudo in an attempt to send it back to the Mamodo World. Inside it, they find Unko Tin Tin, a childish-skeleton guardian who only gave access to them by correctly answering a few questions. Later, in the stomach, the Small Intestine Drill almost killed them, only because Momon slowed it's speed to give them time to escape. Then they find Wonrei and Zaruchimu, who reveals the true about both Li-en and Alishie's problems. After this, Kiyo makes a route to get into the "Teleporter Room", and on their way they found the Heart Guardian who told them the way to there. As everyone was tired of walking, Momon then carried them in his large ears. Close to there, Arth, Elly, Karudio and Sauza attacks the very-tired team, and after a fight they join it. It's almost the time to free Faudo from the seal, and the team got to the teleporter room. Arth teached to Kiyo the Mamodo letters, and then he prepared a 'surprise' to Riou.
The time has arrived, and all Faudo Cultist teams used their strongest spells to break Faudo's seal, or else, the cursed ones will die. However, even their strongest spells wasn't the needed power to do it, and then the "invasor team" appeared and cast both Gyan Bagyam Sorudo and Bao Zakeruga (powered with Zaguruzem) and finally freed it from the seal. Quickly Wonrei joined the team.