Because the last chapter was a bit of a cliff-hanger, I'll leave the blabbing till the end.
Only own Iggy, not Fairy Tail or any of its characters.
Enjoy!

Chapter 4:

A small child, around 3 years old, had run out from a hiding spot on the side of the stage, with Master Makarov tagging not far behind, looking smug. The little girl had messy, rose-pink hair, large brown eyes, and a very familiar grin. As she ran into Natsu's open arms, he picked her up and swung her so she was sitting on his shoulder, staring out across the guild hall. The child shot a look at Lucy who smiled indulgently. The guild was, for the 3rd time that night, stunned into silence. The source of the shock gave a small frown, poked Natsu in the head to get his attention, and broke the silence with words that caused complete chaos;

"Papa, is this our family?"

Lucy giggled at the uproar these simple words had caused, then waited for it to die down so she could speak again. When it didn't quieten fast enough, she quickly unclipped her whip, cracking it loud enough to focus attention onto her.

"What happened," She finally was able to say. "and please don't kill Natsu, because it's not entirely his fault, was that I got pregnant. Everyone, I'd like you to meet Ignacia; or Iggy for short. Say 'hi', sweetheart."

"Hello!"

"I'm sure that, with this information, you can fill in the missing pieces. The people who knew where we were, also knew this. Though Wendy and Charle didn't find out until Natsu came to ask for Wendy's help just before I was due to give birth." Wendy giggled. She was proud of her secret keeping and was excited to properly meet the little girl she'd seen born.

Lucy looked out at the guild members again, trying to gauge their reactions, and wrung her hands nervously, her whip back on her hip. There was surprise and shock. She suspected some of the boys were actually impressed with Natsu based on some of the expressions the saw. Others just looked confused. She was pretty sure Erza's mind had shut down.

She glanced at Natsu to see that even he, for one of the few times in his life, was actually nervous. They both just wanted their daughter to be accepted.

What was needed was someone to normalise the whole situation. After what seemed like an age for the new parent's, it was Pantherlily who did just that by stating; "I'm glad you named her after Igneel."

Natsu and Lucy laughed and everyone relaxed.

"Of course!" Natsu chuckled. "Lucy didn't get a choice in that. Hang on, we'll come down from up here so you can meet her properly."

Soon after, the guild was back to normal. Well, as normal as Fairy Tail could be with the addition of a new child. Natsu and Lucy had been properly welcomed back by everyone, including Master Makarov, who had apparently taken over Happy's job backstage of 'guarding the surprise' while the announcement was made. Levy continued to ask Lucy about the progress of her book, while Iggy was watched and fussed over by Erza, Lisanna and Wendy.

Iggy was squirming, unused to being surrounded by this amount of people. She had grown up with only her parents and Happy in the house, rarely going into the town at the bottom of the hill they'd lived on. So, during the split second the girls were distracted, she slipped off the chair and wandered over to find her father, who was talking to a dark haired man. She looked up at this new person while waiting for Natsu to notice she was there, and suddenly realised the man wasn't wearing a shirt. Which she pointed out to him, in a surprisingly loud voice;

"You're not wearing a shirt!"

"What? Oh shit, when did that happen?"

"Gray, when was the last time you were actually wearing a shirt?" Natsu was smirking.

Iggy thought for a moment. She wasn't sure whether she liked this shirtless man, but she'd heard her dad mention him when talking about the guild.

"Hey! Fight me, pervert!" She yelled, mimicking Natsu as she jumped into a fighting stance.

"I am not a pervert! What the hell, Natsu?"

Natsu didn't answer; he was doubled over, laughing too hard to even respond. Once he'd recovered, he shot a look over his shoulder to check where Lucy was. He let out a small sigh of relief as he turned back to his daughter, grabbing her under her arms and setting her on his hip.

"Oh man, if Lucy hears her say that, she'll kill me for sure." He chuckled. "Iggy, this is Gray, one of Mama and Papa's best friends. Also you're not strong enough to fight him yet. One day you will be, but not yet."

"Yo, Iggy. I promise when you get a bit bigger, I'll fight you." Gray was laughing as well as he watched the frown that was so much like Natsu's. "You take after your papa, kid. Natsu, you better hope I don't tell Lucy what she called me." He goaded his old friend.

"You better hope I never see you in anything less than boxers in front of my daughter, pervert." Natsu shot back.

"You wanna go, flame head?"

"I thought you'd never ask, ice princess! Iggy, go back to Aunty Erza. Your Papa's going to fight Gray instead!"

"But I wanna watch!"

"Yo, pipsqueak." Gajeel had wandered over to see what was going on. "Come sit on my shoulders, you can watch from there."

Natsu raised an eyebrow at the metal-studded man who was once his enemy. "Why are you being nice, metal-head? You know that if you let her get hurt, I'll tear you apart." He said this quite matter-of-factly.

"Calm down, Salamander. I'm curious about whether you've been slacking or not and might as well let the kid watch."

Gray rolled his eyes. "Don't worry, Natsu, Levy's tamed him."
"What was that, moron? I'll take you on anytime!"

Iggy looked between the three men as they bickered. Finally, having had enough, she marched over to the 'metal man'. "Metal-head! Pick me up!" She raised her arms up at him in the universal gesture.

"Tch." He scowled down at her. "The name is Gajeel, kid. Don't you forget it."

"Gajeel. Pick me up." She demanded again. He scowled again, but did as he was told, setting her on his shoulders.

Iggy decided to get things rolling. "Papa! Punch Uncle Gray!"

"Uncle?" Gray barely had time to question before Natsu happily requesting to his daughter's demands.

So, I'm not very subtle or mysterious, I know. Everyone totally guessed what was coming. But that's cool :)
On the downside, I've caught up to myself. I don't even know if I should continue, I mainly just wanted Natsu and Lucy to stun the guild. Does anyone have any prompts for where I should take this?
I'm tempted to start a new story with the same set up. I sort of really want to see 'protective to the point of being nearly feral' Natsu with his little girl. Or maybe I'll explain what Iggy's personality is like. /sigh. Anyway, keep an eye out! I might just do a couple of mini au!fics first.