The seventh installment of The Empire Strikes Back radio drama, titled "Way of the Jedi," was initially broadcast on National Public Radio on March 28 of 1983. This episode presents an adaptation of events originating from Star Wars: Episode V The Empire Strikes Back, focusing on the diverging paths of Luke Skywalker and the Millennium Falcon crew as they head toward Cloud City.
Darth Vader has gathered a team of bounty hunters, including Boba Fett, on his flagship to aid in the pursuit of the Millennium Falcon. As he dismisses the hunters, Admiral Piett rushes to Vader, informing him that the Star Destroyer Avenger has located the Falcon and is rapidly closing in. Aboard the Falcon, Han and Chewbacca make another unsuccessful attempt to jump to lightspeed. With the destroyer closing in, Han conceals the ship by activating its landing claw, attaching it to a blind spot on the enemy vessel's hull, and disabling the engines and lights. Captain Needa of the Avenger approaches Lord Vader to apologize for the loss of the rebels. Vader uses the Force to choke him; he dies while pleading for mercy. Piett then reports that the Falcon is missing and has likely entered hyperspace.
On the world of Dagobah, Yoda guides Luke through an exercise. Luke is balanced upside down as Yoda sits on his feet, teaching him to rely on more than just physical strength. Artoo-Detoo interrupts, indicating that the X-wing fighter is sinking into the swamp. Yoda instructs Luke to raise it using the Force. Luke expresses his doubt in his ability to do so, and indeed, he fails. Yoda responds that "size matters not," and after explaining how the Force unites all things, he uses its power to bring the ship to the shore.
Han's strategy proves successful when the Star Destroyer jettisons its waste before entering hyperspace. Chewbacca releases the landing claw, and the Millennium Falcon blends in with the floating debris. With limited alternatives, Han resolves to seek assistance from his longtime acquaintance Lando Calrissian, a gambler who now oversees a floating gas mining operation known as Cloud City.
Returning to Dagobah, Yoda subjects Luke to another test. He employs the Force to levitate various objects, including Artoo. Yoda instructs him to use his mind to see other places and times. Luke experiences a vision of Han and Leia in distress in a city among the clouds. Luke is desperate to locate and assist them, despite Yoda's warnings to remain composed and in control.
Above Bespin, the local Cloud City Control extends a less-than-warm greeting to Han Solo. The Falcon receives permission to land, but with an armed escort. Han alludes to past disagreements between himself and Lando, but he tries to remain optimistic. Upon landing, Lando initially pretends to be angry about their history, but then he laughs and welcomes them warmly and charmingly, promising to "get my people" to repair the damaged hyperdrive. He takes them on a brief tour of the facility, during which Threepio becomes separated from the group. He wanders into a technical area, where an unidentified individual shoots him.
Luke and Artoo are preparing to depart from Dagobah. The spirit of Obi-Wan Kenobi joins Yoda in imploring Luke not to go. Both masters believe that his vision is a lure from the Dark Side of the Force and possibly a trap set by the Emperor. However, Luke is determined to assist his friends. As he departs, a disheartened Obi-Wan remains with Yoda, stating, "That boy is our last hope;" Yoda responds enigmatically, "No, there is another."
An original scene in "New Allies" depicts Captain Needa's plea to Vader directly, in contrast to the film where it occurs offscreen. This replaces a scene on the bridge of his ship, the Avenger. In the radio scene, Needa praises his crew and accepts responsibility for losing the Millennium Falcon. Vader deems him incompetent, and the captain begs for his life before collapsing, at which point Vader says, "Apology accepted."