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In 2015, aliens called "Mimics" arrive in Germany via an asteroid and swiftly conquer most of continental Europe. By 2020, the United Defense Force (UDF), a global military alliance established to combat the alien threat, finally achieves a victory over the Mimics at Verdun using newly developed mech-suits. In Britain, the UDF plans a major invasion of France, and General Brigham orders recently attached public affairs officer Major William "Bill" Cage to cover it. Cage, having no combat experience, objects and threatens to blame Brigham if the invasion fails. Brigham has Cage arrested and sent to Heathrow Airport, now a military base. Cage awakens to find Brigham has demoted him to a private and falsely labelled him a deserter. He is assigned to Master Sergeant Farell and the misfit J-Squad, all of whom dislike and belittle him.

Farell and J-Squad are quickly killed by the Mimics, who were somehow aware of their planned invasion and ambushed them. Cage uses a Claymore mine to kill an unusually large blue Mimic but is mortally wounded by the explosion and covered in the alien's blood. Cage jolts awake to find himself back at Heathrow, reliving the previous morning. His attempts to warn Farell against the invasion are ignored and he experiences the loop of dying on the beach and waking at Heathrow repeatedly. During one loop, Cage tries to save Sergeant Rita Vrataski, a celebrated hero of the battle of Verdun. She realizes Cage can loop time and orders him to find her the next time he wakes up.