A malevolent ghost (Eokgwi) stares down at the sleeping Lee Rin and blows dark ghostly energy into his ear. Meanwhile, Kisan appoints Lee Rin as the head of the Changcheon Pagoda's construction.
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Following Buddhist Monk So Jung's advice, Park Mu Sol adopts and raises Kang Chi. Afterward, he succeeds in all his endeavors, building the Hundred Year Inn, the best in the south. Now an adult, Kang Chi causes trouble while trying to stop the marriage of his first love, Chung Jo.
Having given his heart to Seo Hwa, Gu Wol Ryung wishes to give up his immortal life to become human. He seeks to obtain the Gu Family Book by observing three taboos. Wol Ryung and Seo Hwa hold their own wedding and spend happy days in the Moonlight Garden, but Jo Gwan Woong remains relentless in his search for the missing Seo Hwa.
In the Moonlight Garden, rumored to be home to ancient mountain spirits, the guardian god of Jiri Mountain, Gu Wol Ryung, roams the human world. When Yoon Cham-pan is falsely accused of treason and executed, his daughter, Seo Hwa, is sold off as a gisaeng.
As the awakened Imoogi (serpent) coils up the pagoda, Sadam is ecstatic, claiming the dragon god is ascending. Jo Sang Heon and Moo Seok move to save Do Ha, while Lee Rin resolves to destroy the Imoogi.
Lee Rin confronts Park Soo Jong, who holds the royal seal. As soldiers attack Lee Rin, Sadam appears, threatening to kill the Queen Dowager unless Lee Rin hands over the seal.
Park Soo Jong threatens the Queen Dowager for the royal seal, warning of a bloodbath. Meanwhile, Lee Rin discovers the seal's location using a jade ring given to him by the Queen Dowager.
A malevolent ghost (Eokgwi) stares down at the sleeping Lee Rin and blows dark ghostly energy into his ear. Meanwhile, Kisan appoints Lee Rin as the head of the Changcheon Pagoda's construction.
Enraged, Lee Rin tries to show Park Soo Jong his mother's blood-written letter, but Rang stops him. Soo Ryun tells her father that his power is the only way for her to have Lee Rin, insisting he must not lose.
As Lee Rin speaks to Kisan, Court Lady Kim tries to tell him something. When Park Soo Jong enters, she glares at him. Park reports to Kisan that the Night Watchmen are gathering around Prince Wolgang (Lee Rin).
Lee Rin sees Park Soo Jong with Sadam and tells Kisan that Sadam is the true cause of the smallpox, but Kisan refuses to listen. By Sadam's spell, vengeful spirits are sucked into the Imoogi's (serpent's) reverse scale.
Lee Rin asks Moo Seok to join him in fighting the smallpox goddess (Mamashin). Meanwhile, Soo Ryun is tortured.
Lee Rin informs Jo Sang Heon that Sadam is the one who gathered the vengeful spirits. Sang Heon then explains what happened to King Haejong. Park Soo Jong refuses to ally with the 'lowly shaman' Sadam and has him thrown out.
Kisan draws his sword on Lee Rin, accusing him of lying about his ability to see ghosts. Meanwhile, Sadam identifies Do Ha as a shaman of the Hae-wol, Hae-il, and Hae-si, and brings her before Kisan.
Lee Rin offers a hand to Do Ha, who is in a cage, but she immediately throws him over her shoulder. Meanwhile, Park Soo Jong plans to appoint Lee Rin as the Director (Jejo) of Sogyukseo.
The ghost trio (Fat Minister, Attendant Song, and Rang) crosses the Samdo River (river to the underworld) and lingers around Lee Rin. Meanwhile, King Kisan is unable to sleep due to Sadam's spell.
While trying to save 'Yeon Ha', the only Mago tribeswoman who can bloom the flower, Haejong is ensnared by Sadam's magic. Succumbing to madness, King Haejong brings great tragedy to the palace.
Meteorites fall on Hanyang, breaking the palace's barrier and allowing ghosts (gwimul) to invade. They attack Prince Lee Rin, who falls mysteriously ill. King Haejong learns the only cure is the 'Millennium Flower' and departs for Mount Baekdu to find it.
Shin, who has been resetting alongside No-seop, grows increasingly anxious as the time of his daughter's death draws near.
Lee Shin's ominous words foretelling death shock the resetters. Amid the confusion over who will be next, a new truth begins to emerge.
Hye-in's death takes Hyung-joo and Ga-hyun's investigation into a new phase. Meanwhile, Lee Shin's hidden past slowly comes to light.
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