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Despite the theft of four prototype Gundams by ZAFT, the Earth Alliance continues its research and constructs new units featuring advanced technologies. One such unit is the GAT-X252 Forbidden Gundam, which is designed as a close combat attack unit. One of the new technologies implemented in the Forbidden Gundam is Trans-Phase armor, which is an improved version of Phase Shift armor. Whereas Phase Shift armor utilizes a 'power up' mode denoted by color and a 'power down' mode denoted by gray, Trans-Phase armor is designed to only activate at the point of impact and thus preserve energy. This energy can then be used for power-consuming energy weapons. Also, to keep up with the abilities of Coordinators, the Alliance designates pilot Shani Andras as a 'biological CPU' rather than a pilot and requires him to take drugs to be able to effectively use his high performance mobile suit. Unfortunately, these drugs have severe side effects after wearing off.

As a close combat suit, the Forbidden Gundam is equipped with various beam and melee weaponry. Most notably, its large backpack can be fitted over its head for a high mobility close combat mode. In this close combat mode, it is capable of firing arcing beams from its "Hresvelgr" plasma cannon or standard shots from its twin "Eckzahn" railguns. The close combat mode also features the "Geschmeidig Panzer" armor system, which can deflect and redirect beams. The system uses a colloid gas filled with beam-deflecting particles, which are held in place by the magnetic charge generated by the shields. Other armaments include standard "Igelstellung" head vulcans and an "Armfeuer" machine gun. For melee combat, the Forbidden Gundam is equipped with a "Nidhoggr" heavy scythe for use outside of close combat mode. The Forbidden Gundam's design is later seen again with the underwater variant GAT-X255 Forbidden Blue and its mass production counterpart, the GAT-706S Deep Forbidden.

The Forbidden Gundam is first deployed in combat during the Earth Alliance's attack on the Orb Union. In Shani's reckless hands, the Forbidden Gundam proves to be a challenging foe, even for Kira Yamato's ZGMF-X10A Freedom Gundam. Following the defeat of Orb, the Forbidden Gundam is taken to space and transferred to the battleship Dominion under the supervision of Blue Cosmos leader Muruta Azrael. The Forbidden Gundam is destroyed near the war's end on September 26, C.E. 71, by Yzak Joule's GAT-X102 Duel Gundam.