Meliodafu vs. Matrona is the final battle in the Vaizel Fight Festival, and is between Meliodas, who has joined the tournament under the name of "Meliodafu" and a shrunken Diane, under the disguise of "Matrona".
After the fight between Cain vs. Meliodafu, the final battle in the Vaizel fight Festival is declared to be between Meliodas and Matrona. Diane suggests to Meliodas, to merely hit each other a few times, and for him to then punch her out of the ring in a dramatic manner, when both are interrupted by three women, who cheer Meliodas in a very erotic manner, also implying that they have had relations with him before this incident. He seems oblivious about this, as Ban is shown to have paid the three woman to act in the erotic manner for having the final fight be exciting. When Meliodas replies to Diane's question that he doesn't know who the women were, she assumes that he has relations with so many women that he doesn't recognize them all, and, enraged, punches him to the ground as the their battle begins.
The great boulder of Vaizel cracks further due to Diane's punch, leading Love Helm to direct the audience to evacuate. Meliodas realizes Ban's scheme, and tries to convince Diane of the misunderstanding. She refuses to believe him, and the both exchange a barrage of attacks, the magnitude of whose power causes the entirety of the fighting ring to shake. The battle continues with Diane kneeing Meliodas in the chest, and almost defeating him, when he retaliates. Diane charges at Meliodas again, and he, while attacking back, wonders why Diane's strength is as powerful even after shrinking. He then tries to land a finishing blow from above, only for Diane to stop the the punch with one of her own, and then push Meliodas back when he tries to attack her again. As she does so, her size is shown to be returning to normalcy. As Diane continues growing, she punches Meliodas. He manages to evade it by escaping through the cracks their battle has created, and continues to slip through the cracks to flee from every one of her attacks. When the audience expresses its disapproval and dislike at the low seriousness of the battle, Meliodas, Diane, Ban and King seem to be alarmed by something.
Meliodas accepts the audience's demands, and, declaring that he will now be taking over Vaizel, displays his symbol of the Dragon, and reveals his identity as the captain of the Seven Deadly Sins, and the Dragon's Sin of Wrath. The civilians initially argue that his appearance is very different from his wanted poster's image, but quickly recognize him, Diane, Ban and King from their symbols and appearances. Meliodas continues that he will give the civilians a chance since he is in a good mood: he orders everyone to leave Vaizel in one minute, lest they be massacred.
When the people hesitate, Meliodas yells at them again. A few brief moments later, several gigantic, and explosive flares rain down on the town, causing much destruction due to the explosions that result when the flares come in contact with the ground. The attackers are shown to to be Guila, Jericho, and another Holy Knight. The citizens, believing that the three have come to save them, cheer for them, requesting them to defeat the Deadly Sins. Elizabeth then understands the Sins' actions: the four had realized that the three Holy Knights were nearing Vaizel, and threatened the civilians to leave, so that they would not be involved in the resulting battle. As the three Holy Knights descend to the town, Meliodas notes that they are now probably incomparably stronger than Guila's strength in the Capital of the Dead, instructs the King, Diane and Ban to separate.