The Macross 7: Encore OVA consists of 3 unrelated episodes set in the original Macross 7 TV series timeline. It is speculated that the story of Macross 7: Encore takes place between episode 39-42 of Macross 7.

In the first episode Fleet Of The Strongest Women the Macross 7 fleet encountered a fleet of uncultured Meltlandis led by Chlore, an ace pilot rivalled by Milia.

In the second episode, On Stage, details the story behind Basara Nekki, Ray Lovelock and Veffidas Feaze and describes how the rock band, Fire Bomber, was formed.

Lastly in the third episode Which One Do You Love? Milia Fallyna Jenius thinks that she is dying due to her micronization, and thus desires to fulfill her last objectives before she departs.

Source: Wikipedia

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Parent story: Macross 7