Master Wehwa gives out the first assignment to the Hwarang members. It is to discuss a king as water and it must be based on “Tao Te Ching” by Laozi. Though his answer is enough to convince everyone, Seonu fails to pass because he argues that Taoism is garbage. He now has only two more chances left to survive in Hwarang.
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When King Seonjo selects Yukdo's lid, Yukdo struggles to contain his joy, while Jeongi graciously acknowledges his skill. Gwanghae petitions the king to lift the Chief Scholar's exile, but Seonjo misinterprets the request as a threat to royal authority. Seizing the moment, Inbin plots to frame Gwanghae for treason by forging his letter. As Jeongi departs on Gangcheon's errand to mine white clay, Gwanghae mounts his horse and races after her.
Despite Taedo's warnings that it is dangerous, Jeongi insists she must remain at the Bunwon to bring Gangcheon down from his nangcheong post. Reunited with Jeongi at the workshop, Gwanghae cannot hide his quiet delight. Meanwhile, Yukdo grows uneasy when he is forced to compete with Jeongi to create the lid for King Seonjo's cherished jar. He promises Jeongi that if she succeeds, he will elevate her to the rank of master potter.
King Seonjo orders Gwanghae, Imhae, and Shinseong to find a way to end the people's widespread stomach illness, prompting Gwanghae to disguise himself and investigate in secret. While surveying the village, he unexpectedly encounters Jeongi, who is making and distributing bowls to the villagers. Jeongi carefully presents a vessel she crafted especially for Gwanghae. Soon, a royal decree is issued for the Bunwon to produce pottery for the common people, and Gwanghae sets out to find Jeongi.
Claiming she has no lingering attachment, Jeongi leaves the Bunwon behind, and Gwanghae watches her go in hollow disbelief. After returning to her former home, Jeongi and Taedo are suddenly seized by military officers, who drag Taedo away. Gwanghae pleads with Inbin to release him, insisting that Taedo once served as his personal guard. Awakened by her mother Yeonok's voice, Jeongi rises and walks toward the kiln…
Startled by the sound of vases shattering inside the kiln, Jeongi peers inside and suddenly collapses. Hearing that Jeongi had been guarding the kiln alone, Gwanghae turns pale and desperately searches for her. Taedo watches over the unconscious Jeongi with quiet anguish. Seeing Jeongi injured, her eyesight damaged, Gwanghae is overcome with pain—yet Jeongi asks only to be allowed back into the Bunwon.
Upon discovering that Jeongi is Euldam's daughter, Gangcheon expels her from the Bunwon workshop. In front of everyone, Mun Saseung kneels and begs Gangcheon to spare her. When Hwa-ryeong declares that she will live solely to defeat Jeongi, Taedo is left shaken. Soon after, Jeongi is ordered to craft a porcelain vase as a birthday gift for Royal Consort Inbin, and Gwanghae promises to support her with everything he has.
Consumed by anger, Gwanghae coldly tells Jeongi that she is no longer the person he once knew—and that she has nothing to do with him anymore. Left in tears as she gazes at the pottery she has made, Jeongi vows to earn Gwanghae's forgiveness. Meanwhile, in front of everyone at the Bunwon, Gangcheon orders that Euldam's vessels be destroyed…
While Gwanghae meets with the envoy, Taedo rescues Jeongi from the warehouse where she has been locked away. Watching Jeongi and Taedo walk off together, Gwanghae is flooded with memories from his past. Taedo warns Jeongi that if she chooses not to be entangled with Gwanghae any longer, she must never allow her true identity as “Jeongi” to be revealed. Back at the Bunwon, Jeongi begins learning the potter's wheel under Yukdo's guidance…
Gwanghae orders Gangcheon to acknowledge Jeongi's achievements and reinstate her at the Bunwon workshop. Soon after, he learns from Hwa-ryeong that Jeongi has already left with Taedo—and discovers the shocking truth that the two are not actually biological siblings. When Yukdo's life is placed in danger, Gangcheon reveals to King Seonjo and the visiting envoy that it was Jeongi who crafted the teacups. As Taedo prepares to confess his feelings to Jeongi, Gwanghae suddenly appears…
After discovering that Jeongi is a woman, Gwanghae urges her to flee at once. Instead, Jeongi asks for just ten days—enough time to complete the celadon teacups for Yukdo. Hearing rumors that Jeongi and Gwanghae share more than a simple connection, Imhae devises a scheme and locks the two of them together in a single room.
When Jeongi vows to step forward to clear Gwanghae's name, Taedo grows increasingly frustrated. Fearing that his own fate may once again bring injustice upon innocent people, Gwanghae sends Jeongi away. Meanwhile, Hwa-ryeong urges Jeongi to finally let go of Taedo.
Mistaking it for Gwanghae's test, Jeongi sneaks into the Bunwon storeroom to choose pottery, only to be caught red-handed by Gangcheon. While confined, she finally realizes that the man she believed to be Gwanghae was actually someone else. As Jeongi tearfully confesses all the wrongs she has committed against him, Gwanghae listens with a quiet smile.
Reunited at last, Jeongi and Taedo recognize each other and share all that has happened. Taedo reluctantly lets Jeongi go as she sets her sights on the Bunwon workshop. Entering the Gongchogun selection exam, Jeongi is arrested and thrown into jail after being accused of attempting to cut down palace trees while searching for firewood. Desperate, she pleads with Gwanghae for help, insisting that she must become a master potter no matter what.
Leaving the collapsed Gwanghae behind, Jeongi escapes home with Taedo's help. While hiding at a tavern, Jeongi overhears a conversation between King Seonjo and Euldam, only to be startled when her eyes meet Gwanghae's. King Seonjo orders Euldam to create ritual vessels to be used for the Jongmyo ancestral rites.
During the competition for the Bunwon nangcheong position, Gangcheon comes face to face with Euldam and is unable to contain his anger. Meanwhile, Royal Noble Consort Inbin, the King's favored consort, devises a scheme in preparation for any possible outcome. At last, King Seonjo examines the porcelain made by Euldam and Gangcheon and reaches a careful decision. After meeting with Gangcheon, Yeonok is seized by severe labor pains…
King Yeongjo decides to abolish the section chief of personnel. The senior officials are furious. Prince Milpoong walks into the palace himself and kills himself. Inspectors at Saheonbu support the King's decision. Lee Yin Jwa and Wi Byeong Joo are executed.
Lee Yin Jwa is arrested and brought before the King. Prince Milpoong, however, is still on the run. The King begins to appoint members of the Namin Party to office as he had promised during the revolt. Both the Patriarchs and Disciples begin to protest against the appointment.
The rebels are ambushed by the government troops and are defeated. Prince Milpoong and Yin Jwa, however, manage to getaway. The Chairman agrees with the King to share government positions with the suppressed Namins, which conciliates the Namins associated with the rebels. The government troops return in triumph, and the King congratulates them.
The King's palace finds out that Cheongju Castle has fallen. Prince Milpoong and the rebels convince the people of the provinces that he will bring about a new world. Moon Soo and his men volunteer to fight in the battle to guard the capital. The King orders his soldiers to go to the battle and feels guilty for not fighting with them.
Prince Yeoning persuades Min Jin Heon to side with him for the moment and stops the special judiciary agency. Meanwhile, Dal Moon turns out to have been secretly supporting the Crown Prince by trying to extract information from Prince Milpoong. The Crown Prince visits Prince Milpoong to help Dal Moon get the decisive information. Moon Soo finds evidence for Byeong Joo's murder of Jeong Seok and decides to do a night inspection.
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