EmpireSd Ryu's Ultimate Weapon
In order to get the EmpireSD also known as the Empire Sword in Breath of Fire 2 you'll first need to wait until Nina gains the ability to call forth the great bird while on the world map. You should also visit the island that Evrai is on that way you can grab the CharmRod before attempting to fish this sword up.
The CharmRod is the best Fishing Pole in the entire game and it'll make fishing up the Treasure Chest containing the EmpireSD much easier. On the island that Evrai is on just to the south of the city you'll find a lone hut. Enter the hut and you'll find that it's an Inn! Upstairs in one of the cabinets you'll find the CharmRod.
Hopefully you have also been saving the 'Gold' you've found up until this point in the game as well! If not you'll need to use another form of bait to fish up the Treasure Chest. With the CharmRod and Gold (or other bait) in hand you'll want to Warp back to TownShip. Once at TownShip fly slightly to the east (using Nina) to where you see me standing in my screenshot below.
Keep fighting battles in this location until you can trigger a fishing location to pop up. Once you see a fishing jumping in and out of the water at the same location of my screen shot above it'll be onto the last step - fishing your prize out of the drink!
If you have 'Gold' use that as Fishing Bait because none of the fish will bother you which means you'll be able to easily grab the chest and reel it in. If you didn't save any Gold from throughout the game then your second best choice is to use Shrimp to fish it out or any other bait that the fish here don't like.
- If you complete the part of the game that results in Nina losing her ability to call the giant bird that lets you fly around; you won't be able to get the EmpireSD anymore. The location you have to land at east of TownShip is too small of an area for you to land TownShip once your city can fly.