Park Soo Jong orders Lee Rin to be bound. As he's dragged away, Lee Rin shouts that the rebellion is reckless. The Queen Dowager warns Park that he will never get the royal seal if he harms Prince Wolgang (Lee Rin).
Park Soo Jong leads his troops to the palace, declaring he will take over as regent to fix the state's affairs. Meanwhile, Sadam is enraged to find that Do Ha, who was trapped inside a painting, has disappeared.
Kisan is shocked to hear ghosts are killing palace staff Lee Rin and Do Ha vow to stop them. Do Ha sees her sister Yeon Ha's face superimposed on Mo Yeon Wol, preventing her from being harmed.
Jo Sang Heon cannot distinguish the real Do Ha from the fake one, as both bear the Night Watchman's mark and the magic reveals no ghostly energy. Meanwhile, Kisan orders tax hikes and more manpower to speed up the pagoda's construction.
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.
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 asks Jo Sang Heon what happened to his father, but Sang Heon coldly turns him away, saying it's none of his business. Meanwhile, Sadam and Hojo are pleased, believing vengeful spirits will heal the dragon god.
Lee Rin is worried about Do Ha's wound. Seeing Lee Rin and Do Ha together, Jo Sang Heon stops Lee Rin. Moo Seok is surprised to see Sang Heon take down five thugs at once.
While Ok Mae calls for Jo Sang Heon, Lee Rin slips into a room after a scuffle with Do Ha, narrowly missing Sang Heon. Moo Seok feels awkward as Do Ha applies medicine to his arm wound.
Kisan suspects Park Soo Jong of smuggling Lee Rin out. Enraged by news that Park moved troops, Kisan questions if Park is threatening him. Lee Rin and Do Ha hide in the underground storage of the Jamojeonga guesthouse.
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.
Keutbong dies in Eopbok's arms. Eopbok is furious over the unknown man's betrayal and seeks revenge.
During the commotion over the Seonhyecheong battle, Daegil and Taeha hide in the tavern. They decide to use Daegil as bait to escape Hanyang and get on a boat with the envoy from Qing.
The unknown man and the slaves attack Seonhyecheong. Beom figures out that Cheolung and his gang attacked the bandits.
Hanseok visits Lee Jaejun is Suwon to ask for soldiers, but gets surrounded by Jo and the government soldiers.
As the unknown man and Eopbok's gang plot to attack Seonhyecheong, they start to think that Giyun is embezzling money.
Eopbok decides to kill Keutbong's master who is mean to Banjjak. In order to save Hyewon, Daegil attacks the government office by himself.
Eopbok follows an order to ambush Yongi and his gang, but gets into trouble after being counterattacked.
After the injury, Cheolung turns coldhearted. He kills the scholars who petitioned to pardon the royal grandson and tries to find information on Taeha.
Jo tries to appoint the royal grandson as the Crown Prince and start a revolution, but Taeha has doubts about Jo.