This amphibious mobile fighter represents the space colony of Neo Denmark. While its performance on land is relatively poor, the Mermaid Gundam is all but invincible in the water, and it can transform into a streamlined "Fish Mode" to carry out high-speed attacks on submerged enemies. However, Neo Denmark has exhausted its budget in its effort to develop the ultimate underwater mobile fighter. The colony is now unable to afford too many more repairs, a factor which puts additional pressure on pilot Hans Holger. In addition to this machine, there are many other prototypes that imitate marine organisms in Neo Denmark.
