Celestia and Luna reappeared and saw the current state of their home now turned into landscape of war. They were enraged by their subjects action and decided to confront Twilight. After confronting her, all of Equestria believed them to be Changeling agents and they were chased out of Equestria.

Months later the princesses discovered an island (like England) out in the Sea of Harmony. A nation of diesel-punk humans lead by a King known as "The Lion" (As in Richard the Lionheart or Lion el Jonson) and also found that ponies were also living amongst humans as citizens but most of the ponies were refugees from the war. The princesses met The Lion and asked him for help, later after a long discussion The Lion agreed to help them. Thus a Human\Equine faction was formed calling themselves as The Iron Coalition.

Important characters:
The Lion (Leader of the faction)
Princess Celestia (Co-leader)
Princess Luna (Co-leader)

Faction Strong points and weak points:
+Diesel-punk technology
+Armoured units
+Ranged weapons
+Uniting races of Equestria under their banner
-Expensive units
-Limited to magic
-Limited melee units

Might think of ideas for the units.

4203848 I could've sworn Equestria Divided had a strict no humans rule, guess I was wrong.

4203873

It's fanon. Not really going to be canon.

4203873

Plus there's Ranger24's story and this.

How about the Iron Horse for the name? Since that is the term for steam engines. Their points are good but I am wondering if they could use Chi?

Questions aside I really like the concept of it.

Iron Coalition Basic Infantry.

Volunteers:

+Cheap
+Strong in large groups
-Low morale
-Light armour
-Inexperienced

Riflemen:

+Medium armour
+Accurate ranged weapons
-Ranged weapons only effective against light and medium armoured infantry

Field officer:

+Units around the officer will have a morale increase.
+Call in artillery strikes
-Lightly armed
-Light armour

Rocket Trooper:

+Effective against armoured units
+Can either load anti-personal or anti-armour rockets
-Light armour

Paratrooper:

+Para-drop behind enemy territory
+Medium armour
-Vulnerable while Para-dropping

Celestial and Lunar Loyalists:
+Zealous (Unbreakable morale)
+Heavy armour
+Adepts in melee combat
-Can't use ranged weapons

Equestrian Rebels:
+Medium armour
+Use of Equestrian firearms
+Melee fighters
-Inaccurate with firearms

Escaped Slaves:
Preferred Enemy: House Moon and Star
+Retrained to use human firearms
+Zealous (Unbreakable morale)
-Light Armour
-Poor melee combat fighters

Huh I guess diesel-punk and steam-punk are different. I was expecting more machinery I guess, then again I have been too much time in the HaS forums. So the units are good, I just did not get what you ment by diesel-punk.

One of the units I like are the Celestial Loyalists for obvious reasons.

4203848
This interest me.

4207587

Info of Dieselpunk.

4208080

Strange, I must have been searching for it wrong than. Thanks for the info, I'm starting to get the concept of you're idea.

While thinking ideas for armoured units. Here's some fast facts of the Iron Coalition:

Share the love: Interspecies is common in the Iron Coalition. Whether from a steamy love affair between a human marine and a pegasi mare of the Coalition air force to a married interspecies couple. However, it's been look down upon by race purists.

Live a peaceful life or payback?:Former slaves of the House Moon and Star have two choices: Live free as a citizen of the IC or send Twilight their regards by joining the military. In House Moon and Star territory, slaves who escaped from the domes are organizing armed militias led by either Paratroopers or Rebels.

Friend or foe?: Despite what happened to the princesses. Both the Lion and the princesses are certain that some of the six factions can be redeemed and/or rejoin Equestria (Join the Iron Coalition). But there are those who are lost from the chaos of the war, judged for their acts and their crimes.
Potential ally:
House Stormwing (Rainbow Dash)
House Whitegold (Rarity)
House Earthborn (Applejack)
Neutral:
House Everfree (Fluttershy)
Enemy:
House Moon and Star (Twilight Sparkle)- Slavery and Experimentation. 'nuff said
Cult of Laughter(Pinkie Pie)- Do I need to explain?
Changeling horde- Bugs!

Might think of more facts.