After catching up to Wei Wu Xian, Lan Wang Ji confronts him and then drags him to the Gusu Lan Sect’s library to carry out his punishment.
In the library, Wei Wu Xian unhappily copies the scriptures as Lan Wang Ji sits by to supervise him. But he soon becomes restless and decides to go up to Lan Wang Ji to apologize.
As Wei Wu Xian tries to gets Lan Wang Ji’s attention, he is ignored until he shouts out Lan Zhan (Lan Wang Ji’s courtesy name). This gets Lan Wang Ji to give him his attention. Wei Wu Xian then apologizes to Lan Wang Ji and tries his best to explain his innocence. But it is futile as Lan Wang Ji eventually uses his silencing spell to shut him up.
At the same time, Wen Qing enters Wen Ning’s room. As Wen Ning is pouring tea for his older sister, he innocently mentions that Wen Qing is often disappearing and questions if she is looking for something. When Wen Qing doesn’t answer, he backs off and stops asking.
Wen Qing then changes the topic and expresses her disappointment in herself for coming from a family of medical doctors, but she is unable to cure her own brother. She then promises that she will one day take him away from the Qishan Wen Clan.
Back to Lan Wang Ji and Wei Wu Xian in the Gusu Lan Sect’s library. Wei Wu Xian continues to copy scriptures as Lan Wang Ji watches him. However, instead of copying scriptures, he was drawing a picture of Lan Wang Ji. He gifts the picture to Lan Wang Ji and tells him that he is not coming the next day.
Lan Wang Ji comments that the picture is extremely boring and grabs the book that he was reading. He then realizes that Wei Wu Xian has replaced the book with an erotic book, which makes him furious. He tears the book up and kicks Wei Wu Xian out of the library.
After running out of the library, Wei Wu Xian meets up with Jiang Cheng and Nie Huai Sang and tells him what happened between him and Lan Wang Ji. Nie Huai Sang finds it amusing that Wei Wu Xian had the guts to make Lan Wang Ji angry. But Jiang Cheng doesn’t find it funny and berates Wei Wu Xian for disgracing his family and the Yunmeng Jiang Sect. As the three are happily chatting, they all notice something lurking about. It turns out to be an owl from the Qishan Wen Sect and they all start to question and become suspicious as to why it’s at the Gusu Lan Sect.
Lan Wang Ji tells Lan Xi Chen that someone has been sneaking around in the back mountains of Gusu Lan. Lan Xi Chen asks him who he is suspicious of and Lan Wang Ji tells him that it is Wei Wu Xian and that he thinks they should reinforce the area. Lan Xi Chen obviously doesn’t believe Wei Wu Xian to be the culprit and comments that as long as “she” doesn’t go near it, revealing that he knows that Wen Qing has been sneaking around Gusu Lan. When Lan Wang Ji asks who he is talking about Lan Xi Chen brushes it off and tells him to forget about it.
As the brothers are talking, they are interrupted by another disciple who informs Lan XI Chen that the villagers of Cai Yi Town have asked the Gusu Lan Sect for help with recent incidents regarding Water Ghosts. Lan Xi Chen seems to suspect something going on and tells the disciple that he will personally go the next day to get rid of them. He then asks Lan Wang Ji to go with him to and Lan Wang Ji obliges.
Wei Wu Xian and Jiang Cheng return to their rooms to find Wen Qing there with Jiang Yan Li. They find out that Wen Qing has been treating Jiang Yan Li because she had been feeling dizzy earlier that morning. As the three discuss about Lan Xi Chen and Lan Wang Ji going to Cai Yi Town, Wei Wu Xian and Jiang Cheng express wanting to join them.
After leaving Jiang Yan Li to rest, Wei Wu Xian, Jiang Cheng, and Wen Qing rush to meet with Lan Xi Chen and Lan Wang Ji. They express their wish to join them. Although Lan Wang Ji is reluctant to let them join, Lan Xi Chen agrees to let Wei Wu Xian and Jiang Cheng join. Wen Qing also asks to join along. Lan Xi Chen is hesitant to let her join but agrees when Wei Wu Xian compliments her medical skills and suggests that they may need her help. As they are about to depart, Wen Ning comes and joins them. Lan Wang Ji then secretly asks his brother as to why he agreed to let them come along. Lan Xi Chen replies that it is because it seemed like Lan Wang Ji was the one who truly wanted them to come.
When they arrive in Cai Yi Town, they go to Biling Lake to investigate. Wei Wu Xian notices a Water Ghost hiding underneath Lan Wang Ji’s boat and strikes at it. Everyone questions how he knew there was a Water Ghost underneath the boat and Wei Wu Xian explains that Lan Wang Ji’s boat only had one person but it was deeper in the water as if there were two people on it, which could only meant that there would be a Water Ghost underneath it.
More and more Water Ghosts appear, and the group continue to try their best at knocking them off their boats. Lan Wang Ji notices Wei Wu Xian’s sword and asks what the name of the sword is. Wei Wu Xian tells him it is “Suibian”, meaning whatever. Lan Wang Ji thinks he is teasing him, but Wei Wu Xian explains that when he got his sword he couldn’t come up with a satisfying name, so he just decided called it Suibian.
As the group continues, Jiang Cheng gets attack by the Water Ghosts and Wen Qing flies over to treat his wound. Wei Wu Xian and Lan Wang Ji fly over as their boat as attacked from a Water Ghost. They all soon discover that there are numerous Water Ghosts lurking in the water and they all seem to be coming together. Wei Wu Xian then discovers that all the Water Ghosts are gathering into one to become the Aqua Demon.
The group members all then fly off their boats to escape from the Aqua Demon. Wen Ning and another Gusu Lan Sect disciple are trapped and Wei Wu Xian goes to help them, but loses balance when he becomes shocked from Wen Ning’s eyes turning white. Lan Wang Ji ends up saving all of them by grabbing onto Wei Wu Xian’s collar.
Lan Xi Chen uses his flute and is able to destroy the Aqua Demon.
That night, Wei Wu Xian is checking on the unconscious Wen Ning when Wen Qing enters the room. He tries to ask Wen Qing if there is anything wrong with Wen Ning, but Wen Qing is hesitant to answer. Wei Wu Xian gives her a protection talisman for Wen Ning and expresses that he hopes it will protect him.
The next day, Jiang Cheng walks around the market and comes across and stall and sees some combs. He contemplates buying one for Wen Qing.
Later, the group rides boats in the canals of Cai Yi Town. Lan Wang Ji and Lan Xi Chen discuss the events from the previous days and Lan Wang Ji starts to connect all the recent happenings together. He suspects that they were all related and asks his brother if he also thinks the same. Lan Xi Chen doesn’t say much, but admits that he hopes that his assumptions are wrong. But he knows that whatever happens will happen and they will not be able to change it.
After coming back victorious from Cai Yi Town, Wei Wu Xian, Jiang Cheng, and Nie Huai Sang enjoy each other’s company by drinking the wine that Wei Wu Xian smuggled back. As they are talking, Wei Wu Xian teases Jiang Cheng which makes him angry and he gets up to chase him around the room. With Jiang Cheng chasing Wei Wu Xian around the room and screaming at him, Nie Huai Sang tries to calm the two down.
During the commotion, Lan Wang Ji barges in. He questions them about what they’re doing and discovers that they were drinking alcohol. He scolds them for not following the rules and tells them they need to be punished.
However, before Lan Wang Ji is able to report them, Wei Wu Xian casts a talisman on him to make him immobile. While he is frozen, Jiang Cheng and Nie Huai Sang use the opportunity to run away. With Lan Wang Ji under his spell, Wei Wu Xian forces him to drink one cup of wine. And, after drinking the cup of wine, Lan Wang Ji passes out.
After a bit, Lan Wang Ji awakens when Wei Wu Xian comments that his headband is crooked. He shoots up from the bed and tries to adjust it. Wei Wu Xian offers to help, but he is rejected. Lan Wang Ji explains that the Gusu Lan Sect member’s headbands are sacred and only parents and significant others are allowed to touch them.
The two then begin to share stories about their past with Lan Wang Ji telling Wei Wu Xian that he doesn’t have a mother. Wei Wu Xian then shares his story of being orphaned at a young age and how he doesn’t remember much about his parents.
The next morning, Lan Xi Chen is telling Lan Qi Ren about what happened in Cai Yi Town. As they talk, Lan Qi Ren learns from Lan Xi Chen that Wei Wu Xian is the child of Wei Chang Ze and Zangse San Ren. He unhappily comments that Wei Wu Xian’s personality is exactly like his mothers. A disciple then enters the room and informs them that Wei Wu Xian, Jiang Cheng, and Nie Huai Sang were caught drinking the night before and Lan Wang Ji was also with them. Lan Qi Ren gets angry and summons them to be punished.
Lan Wang Ji, Wei Wu Xian, Jiang Cheng, and Niu Huai Sang are all summoned before Lan Qi Ren and Lan Xi Chen. Lan Wang Ji readily admits his fault and accepts his punishment. Wei Wu Xian speaks up for him and admits that he was the one who forced Lan Wang Ji to drink against his will. Lan Qi Ren dismisses Wei Wu Xian’s confession and reprimands him for breaking the rules over and over again and getting the others involves. He briefly mentions Wei Wu Xian’s mother, which gets Wei Wu Xian’s attention and he asks him if he knew his mother. But Lan Qi Ren orders the four to be punished by flogging.
After being punished, Wei Wu Xian and Jiang Cheng vent to Jiang Yan Li about their wounds. They are then stopped by Lan Xi Chen who tells Wei Wu Xian about a sacred place he can go to help heal his wounds. He also reveals that the reason why Lan Qi Ren was extra harsh to Wei Wu Xian was because of his grudge against his mother, Zangse San Ren, who has a similar personality to Wei Wu Xian.
As Wei Wu Xian enters the sacred stream that Lan Xi Chen told him about, he discovers that Lan Wang Ji is already there. He happily tries to join him, but Lan Wang Ji hurriedly gets dressed and tries to avoid him. Wei Wu Xian tries to talk to him and tells him how he thinks they should be friends. Lan Wang Ji isn’t interested in talking with Wei Wu Xian.
As the two continue to bicker, something pulls them into the water. They both end up falling deep inside a hidden cave that is located underneath the stream.
As they try to figure out a way to escape the place, they come across a room with a zither. Lan Wang Ji is able to get close to zither, but it rebuffs Wei Wu Xian. After being attacked several times, Wei Wu Xian becomes confused as to why he is getting attacked by the zither while Lan Wang Ji isn’t. Lan Wang Ji examines the zither and realizes it belongs to the Gusu Lan Sect and the zither attacked Wei Wu Xian because he is not a member of the sect.
Wei Wu Xian then comes up with a plan and requests Lan Wang Ji to hand over his headband. Lan Wang Ji ties his headband to Wei Wu Xian and the two are able to walk up to the zither without it attacking them.
As they are trying to uncover the secrets of the zither, they suddenly hear voices in the cave from the five different sects. But they are unable to figure out where the voices are coming from. Suddenly, Lan Yi appears before them. She sits in front of the zither and Lan Wang Ji recognizes her as the only female leader of the Gusu Lan Sect.
Meanwhile, news of Wei Wu Xian and Lan Wang Ji’s disappearance spreads throughout the Gusu Lan Sect. Lan Xi Chen orders people to go find them. Jiang Cheng and Jiang Yan Li also join in.
Inside the hidden cave, Lan Yi reveals to Lan Wang Ji and Wei Wu Xian that she has a part of the Yin Iron. She begins to tell the two about what happened in the past and why she is sealed in the cave.
A hundred years ago, Xue Chong Hai used the Yin Iron to absorb grievances and resentment and used living people as sacrifices. Using the Yin Iron, he controlled a ferocious monster called Xuan Wu. Afterwards, the five sects (Gusu Lan, Qishan Wen, Qinghe Nie, Yunmeng Jiang, and Lanling Jin) formed an alliance and killed Xue Chong Hai and sealed Xuan Wu. Lan Yi explains the Yin Iron is a sacred object that naturally absorbs energy, but Xue Chong Hai fed it with resentment and hatred and was unable to be suppressed by the five sects. Thus they decided to break it into pieces and place the pieces in different places where there are an abundance of good energy.
As Lan Yi finishes explaining about the Yin Iron, Wei Wu Xian mentions that since the Yin Iron is able to absorb energy, then it is possible to turn it into good use. Lan Yi is amused by his idea and admits that she once thought of the same idea. She shares that during her reign as the leader of Gusu Lan Sect was a time where the sect was facing turmoil. People of the sect did not acknowledge her status as the leader because she was a woman and many often fought against her. However, her only goal was to revitalize and bring the clan back to its former glory. She wanted to use to the Yin Iron to help her reach her dreams. In order to achieve her goals, she found a piece of the Yin Iron that the Gusu Lan Sect hid, which is in the hidden cave that the three are currently in. But while she wanted to use the Yin Iron, many opposed to it. Because of her actions, Lan Yi and her good friend Baoshan San Ren, Zangse San Ren’s master, fought as Baoshan San Ren disagreed to Lan Yi using the Yin Iron.
In the end, Lan Yi was unable to use the Yin Iron. And once the seal was broken from the Yin Iron, it could not be redone. Therefore, she decided to use all her energy to seal herself along with the Yin Iron in the cave.