Lee Soon gives a decree to Ok Jung for the crimes of setting up an altar and harboring jealousy towards Inhyeon. Meanwhile, Chi Soo asks Ok Jung to be given to him as property.
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Baekmu and Jini are working on the Crane Dance for the royal feast, but Jini is thinking something else. Baekmu is disgruntled, believing that Jini is not focusing because of Kim Jeonghan.
Jini gets closer to Mumyeong intentionally when she sees Kim Jeonghan approaches. He freezes and turns his back.
Byeok Gyesu's geomungo indeed interests Jini. Jini tries him with a song. Byeok Gyesu gives in and is humiliated in front of Jini.
Jini is left alone on the stage due to Buyong's conspiracy. Jini overcomes it with her wit, but the dance fails.
Kim Jeonghan is knocked unconscious, trying to protect Jini from the falling beam. Learning that it was intentional, Baekmu corners the courtesans.
Kim Jeonghan cannot sleep when he thinks of Jini in the bedroom of Byeokgyesu. Buyong prepares a table in her home and invites Kim Jeonghan, but he refuses.
To keep her chastity for Eunho, Jini declares to Baekmu that she will become a water maid, instead of a courtesan. Baekmu accepts it and suggests a test to Jini.
Eunho hands the token of eternal love to Jini, who cries the tears of joy. At home, Eunho declares his decision that throws back Cha.
After finding out about Jini and Eunho, Cha storms to the courtesan's school in anger. Jini is humiliated by Cha, while Baekmu is severely burned while trying to protect Jini.
Jini opens her heart to Eunho's true love and they love each other dearly. In the meantime, the city government issues an order to select the courtesans for the feast, and Suman mentions Jini.
Eunho circles around the government to find his beloved Jini. Finally, he meets her, but he is humiliated in front her when he was found to be one of the thieves.
After much hardship, Jini is admitted to the courtesan's school and meets her mother Hyeongeum. But her mother denies that Jini is her daughter, trying not to pass down the life as a courtesan. However, Jini is hurt by her mother's denial.
Jini is raised in the Buddhist temple. Committed to find her mother, she completes her Three Thousand Bows. She leaves the temple to find her mother, but she fails. On her way back, she sees the exquisite dance of the courtesans.
The Crown Prince finds out that Eunuch Hong is actually Hong Gyeongnae's daughter, but he cannot believe she approached him on purpose as a spy. He feels so lost and betrayed that he doesn't know what to do. Meanwhile, Raon is also in pain because of the fact that she has to stay far away from him for everyone's sake.
Raon finds out that she is Hong Gyeongnae's daughter and realizes she can never be safe in the palace. Without telling Yeong the truth, she spends the day with him and leaves quietly. Meanwhile, the officials start searching out the Baekwoon Group's spies, especially Hong Gyeongnae's daughter who is said to be residing in the palace.
Premier Kim's servant discovers that Hong Gyeongnae's daughter is called Hong Raon and she is currently in the palace. Knowing Eunuch Hong is Raon, Yunseong secretly gets rid of him and warns the Crown Prince that she needs to leave the palace as soon as possible. However, Yeong is determined to go through any hardships to be with her.
The King persuades Yeong that he must marry Minister Cho's daughter to have more people on his side. Raon also persuades him to marry her since she doesn't want to cause any harm to him. The decision seems to be inevitable if he wants to keep his promise to become a king who always considers the best for the nation and the people.
Raon tells Yeong a story about the mermaid who falls in love with a prince and turns into sea-foam in the end. Both of them realize that they will eventually become like the mermaid and the prince since Yeong has to marry someone whose family can give him political power and Raon has to pretend she'd be all right and disappear.
Yeong continues to postpone the national exam to stop the corruption, which leads to more deepened conflicts with Kim Heon. Even students who have been preparing the exam address an appeal to the king. Meanwhile, having heard that Yeong would treat her as a lady, Raon starts to avoid him.
Yeong is about to start ruling as an interim king, but the conflict regarding the national exam between Yeong and Kim Heon deepens. After Yeong's profession of his feelings to Raon, she feels awful because she can't tell him the truth about her. Meanwhile, as Hayeon gets to love Yeong more and more, she goes to meet Raon for advice.
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