Ringo Ōhoshi reveals her latest creation, aluminum shovels, to Tsukasa Mikogami. Seeing her overworked, he tells her to get some rest, reflecting on how all of the Prodigies have likewise been overworked recently.
Meanwhile, in Dormundt, Jaccoi is alarmed when he finds out that Masato Sanada's Elm Trading Company has bought all of his wares and workers. Masato reveals that Jaccoi's workers left because he laid them off for patrolling land routes given that the harbor was his best source of income, allowing Masato to take advantage of that for himself. Masato further lectures Jaccoi on trust, saying that the trust of one's employees is more important than money. When Jaccoi, realizing that his business is about to be crushed, pleads for mercy, Masato grants it, promising to work out the specifics with him to avoid a monopoly on Elm's behalf.
Later, Masato reveals to a confused Elk and attentive Roo that this had been his plan all along: to saddle Jaccoi's Neutscheland Trading Company with what Elm couldn't use. As Masato gloats about being called the "Demon Lord" back in his world due to these sorts of tactics, a company of guards arrives to take away Roo, as she was formerly a slave and her owners want her back; in response, Masato once again shows his more compassionate side, buying Roo from the slavers so that she can be free as she was before and making all involved very happy.
Back at Elm Village, Tsukasa is informed by Shinobu Sarutobi that she's learned much about the magic system of the world: there are four elements (fire, water, earth, and air), and communing with the spirits of those elements grants people power, though it's extremely rare for anyone to be able to do so. She also reveals that she's learned that the legend of the seven heroes that Winona told them about used to be believed by a religion called the Seven-Light Faith, but that that, along with all other religions, was crushed by the empire now dominating the world when it took over. Though Tsukasa believes that the Faith is their only hope to escaping the world, Shinobu worries that they will be unable to leave without a travel permit from Marquis Findolf, who is known to be a despicable man. However, this discussion is interrupted by the revelation of a public steam bath that Aoi Ichijō and Kumausa have built.
As the villagers enjoy the bath, they are interrupted by the arrival of Prince Akatsuki, who reveals that many of the villagers, while hunting, ran into a monster called the Chief of the Forest. Tsukasa, Winona, Aoi, and Keine Kanzaki rush off to stop the monster, where they are informed that Mayor Ulga of Elm Village was mortally wounded by the monster. Keine inspects him and discovers that she can save him via her medical skills; she proceeds to do so as Aoi, using her swordsmanship skills, takes down the monster. With Ulga's injuries mended by Keine and the monster slain by Aoi, the foursome return triumphantly to Elm Village.
However, at the village, spirits are low; while Masato, Elk, and Roo have arrived back at town, they couldn't have come at a worse time. Many of Findorf's Guardian Knights, lead by the Silver Knight, Inzaghi, have come to detain the villagers. Masato, Elk, Roo, Akatsuki, and various other villagers are trapped in a building, where they are informed by Inzaghi that they are to be punished for laying hands on coins, which is a treasonous offense for peasants to do. Masato protests that this is not a fair excuse, but Inzaghi replies that he needs no excuse.
When Tsukasa's group returns, the building containing the others is alight and Inzaghi and his knights are nowhere to be seen. Though many despair, Tsukasa reveals that Akatsuki can save the others through knowledge of how to escape locked coffins as learned in his magic shows. Sure enough, all of those inside the building are soon saved thanks to Akatsuki; however, Akatsuki reveals that Marquis Findolf ordered all this. Furthermore, Tsukasa realizes that Lyrule is nowhere to be seen.
A post-credits scene reveals Lyrule unconscious in Inazghi's wagon as he leers over her.
- Tsukasa Mikogami
- Ringo Ōhoshi
- Masato Sanada
- Shinobu Sarutobi
- Aoi Ichijō
- Keine Kanzaki
- Prince Akatsuki
- Chief Ulga
- This is the first episode to have a post-credits scene.