The night watchmen try to get the serpent away from Sa Dam, but Sa Dam blocked them out by using a defense protection magic. Rin, Do Ha and Moo Seok are attacked by the night watchmen spirits.
Rin finds out that his mother was killed by Park Soo Jong.
Turning around, Rin sees In Hwa strangling Moo Seok. He goes near them and puts a talisman on In Hwa’s back.
Rin:” You don’t have to be an evil spirit anymore!”
In Hwa is back to herself. She and Moo Seok are saying their goodbyes. In Hwa left for good, with a smile on her face.
Sa Dam arrived at the temple to help the smallpox goddess. But he came too late. He doesn’t understand who could have destroyed the defense perimeter he put around the temple. Then he sees the night watchman talisman and Rin.
The next morning, Rin, Do Ha and Moo Seok accompanies the Queen Dowager back to the palace. Something change in Moo Seok. Thinking that he will never meet his sister again, he was depressed after In Hwa died. Now that he knows that In Hwa is somewhere, he starts to believe that at some point he will meet her again.
Sa Dam takes the talisman to Park Soo Jong. Realizing that the night watchmen are reestablished, they start a plan to get rid of the night watchmen again. Park Soo Jong went to see the king and tell him that people who can control ghosts are going to look for Rin. But when Park Soo Jong entered the king’s room, Rin was there. While talking to his brother, Rin saw the ghost of his mother’s court lady. Rin saw the court lady’s ghost looking at Park Soo Jong as if he did something to her.
The king gave his order that all of those who can see ghost to be arrested. The inn where Do Ha is staying is accused of treason. When the guards arrived to search the inn, Sang Hyun, Rin, Do Ha and Moo Seok were in the basement so the guards couldn’t find them.
The king is building a pagoda, as Sa Dam asked him. Sang Hyun knows the reason Sa Dam wants to build a pagoda. The only way for the serpent to ascent to heaven is through water and since Sa Dam can’t move the serpent to the environment he need, Sa Dam chose the next best solution.
Rin, Do Ha and Moo Seok went to the palace. They’ve entered the canal that takes them to where the serpent is, but something is wrong. The canal seems different. Suddenly a smoke appears and they are taken to the forest. There, in the forest, Rin, Do Ha and Moo Seok were attacked by the night watchmen. They fought with them, but when Rin used his sword, they were taken to another place. In that place, between others, there were Mr. Chun and the inn’s owner. They were building something. They were helping building the pagoda.
Later, returned to the inn, Rin, Do Ha and Moo Seok told Sang Hyun what happened. Sang Hyun is worried. If someone uses the night watchmen, Rin, Do Ha and Moo Seok won’t be able to stop them. When someone gets a wrongful death and he doesn’t get the revenge he wants, his spirit can be turned into an evil spirit.
When he is leaving, Rin confesses his feelings to Do Ha. At first he asks Do Ha if she is remaining in the capital just for Sa Dam. Rin knows what Sa Dam means for Do Ha. He killed her parents and kidnapped her sister. Do Ha needs to stop Sa Dam.
Rin:” I wish…it were me. I wish I am the only reason why you’re still in the capital.”
And since Moo Seok knows when to appear, he comes in the middle of Rin’s confession, because they need to go to their houses.
Moo Seok:” Do you like her?”
Rin never accepted any responsibilities, but now he wants to be responsible for Do Ha.
Sa Dam is promising the ghosts in town that he will send them to heaven if they will follow him. Eunuch Song went to see what is going on. There he saw handmaiden Kim, Rin’s mother lady court.
When Rin arrived home, minister Ddoong and Rang Yi told him the eunuch Song disappeared. They went to search for eunuch Song, but they couldn’t find him. Arriving at the place where the ghosts met Sa Dam, Rang Yi saw handmaiden Kim and got scared.
Soo Ryun came to see Moo Seok. When she entered, Soo Ryun saw Do Ha and got furious. How can her cousin let a lowly shaman into his house. She offends Do Ha, calls her a prostitute. Moo Seok stops Soo Ryun and she get more upset. Who can her cousin chose Do Ha over her. But when Rin arrived, the upset Soo Ryun left. She went straight to Mo Yul Wol.
Soo Ryun can’t meet Mo Yun Wol, but she meets Sa Dam. She made a deal with Sa Dam. With Sa Dam’s help, Soo Ryun wants to get Rin’s heart and in exchange Sa Dam will get Do Ha.
After Soo Ryun left, Sa Dam enters Mo Yun Wol’s room. She found out recently that the man she thought was her father, died 100 years ago. Mo Yun Wol can’t remember who she is and her life before meeting Sa Dam.
At the construction site there was found a piece of material. On that material someone wrote something with blood. That piece of material gets into Park Soo Jong’s hands. But when Park Soo Jong’s man wants to destroy that material, Sa Dam‘s man attacks him and takes the note away. After reading that note, Sa Dam send his man to make sure that the material gets to Rin;s hands.
Arriving at the palace, Rin sees something on the floor. It’s the piece of material that was found at the construction site. He reads the message. It was a message for him, wrote by his mother before she died. She was telling him that Park Soo Jong killed her.
All his life, Rin heard that his father went crazy and killed his mother, than he killed himself. Angry and hurt Rin runs to Park Soo Jong’s house. Before entering, Moo Seok stops him.
Moo Seok:” What will you be able to achieve by confronting the prime minister?”