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.
With Do Ha's help, Lee Rin breaks free from the ghostly energy. However, he pretends to still be possessed as part of a plan to trick Sadam. Maeng Sa Gong joins the Night Watchmen to help defeat the Eokgwi.
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.
Lee Rin, clinging to a narrow ledge on a cliff, is pulled up to safety by Do Ha. The ghost trio tells Lee Rin and Do Ha to flee while they lure away the military officers.
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.
Ok Jung gathers the court ladies who behaved coquettishly in front of Lee Soon and forces them to drink infertility medicine. Meanwhile, Chi Soo steps forward to help Inhyeon's restoration to the queen's seat.
Ok Jung, showing her son Yun to the ministers, says she wishes to be called the queen as the mother of the Crown Prince. Meanwhile, Inhyeon, having saved the Crown Prince while Lee Soon was unconscious, asks him to protect her father's life in exchange for the life of the Crown Prince.
Min Yu Jung proposes to Prince Dongpyeong that he raise a flag of revolt against the king and asks him to make his decision immediately. Meanwhile, Inhyeon tells Ok Jung to give her Yun and leave if she wishes to keep her life.
Ok Jung safely gives birth to a prince. Meanwhile, Lee Soon suddenly falls unconscious.