When sightings of monsters and other mysterious activities are reported around a nearby reactor, General Sephiroth is summoned to Nibelheim to investigate. He is accompanied by a promising young SOLDIER by the name of Zack and two lower guards who keep the curious villagers at bay while the heroes pass through. One man finds the courage to take a photograph of Zack and Sephiroth along with the local guide hired to escort them through the mountains, Tifa Lockheart.
The journey proves to be a treacherous one -- one guard is lost to the hostile mountain trail -- but the party pushes onward. When they finally arrive at the reactor, Sephiroth and Zack continue inside while the remaining guard blocks the entrance to prevent Tifa's curiosity from getting the better of her. After a time the two emerge and it is apparent they had found more than they had bargained for.
Upon returning to Nibelheim, Sephiroth retreats to the basement of the Shinra Mansion on the outskirts of town; the rest of his party, not to mention the population of the town, waits restlessly for him to return to civilization. Anxiety builds as days pass without so much as a word from the general, and when the mansion's doors finally open, all hell breaks loose. Sephiroth, having apparently lost his sanity while holed in the musty laboratory of a basement, single-handedly reduces the town to mere ashes before making his way to the reactor on his own. Tifa follows looking for revenge but is stopped short when slashed across the front by the general. Horrified by the morbid turn of events, Zack rushes after Sephiroth, meeting him in the reactor. Sephiroth declares that he has come to rescue his "mother" -- Jenova -- and to restore the Planet to her power. With this he effortlessly strikes Zack down and continues with his mission.
Unbeknownst to all, the remaining guard witnesses the exchange as well. He gingerly moves Tifa aside, carefully propping her against one of the pods in the room, and picks up Zack's sword where it has fallen. Blood boiling with anger, he lunges at Sephiroth and hits his target.
As Sephiroth sinks to the floor, clutching the fatal wound, the young guard begins to back away. He is visually shaken, not sure what to make of anything that has occurred in mere seconds. Finally, he turns his back on his superior, removing his helmet as if to clear his head with the action and consequently revealing his identity.
The guard is Cloud.
Somehow the general is able to resume his footing and attempts to make his way out of the reactor while Cloud checks on Tifa and Zack. With Zack's request, he follows Sephiroth to a catwalk high above the mako vats, sword in hand and fully bent on finishing what he has begun. However, Sephiroth is not entirely without his head and cleanly runs the smaller man through with the Masamune. Before he has time to gloat in victory, Cloud achieves what should be the impossible. With his remaining strength, he lifts the blade protruding from his chest (as well as its owner) and turns towards the catwalk's edge -- letting gravity run its course and pull the general to the ground far below, allowing the sword to slip neatly after him.
Source: Final Fantasy VII


