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If u kill Sephiroth No you can't continue but you can always get in or out from the North-Crater. You also have many secrets to do and weapons to kill before killing Sephiroth. Also you can save before killing Sephiroth and after the ending cinematic you can reload your game to continue and Sephiroth don't give any important weapon or items and he's not even hard the real combat challenge are the 2 weapons (Ruby and Emerald).

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