Having arrived in Yu Dao, the gang lies low and begins to consider its options. Moshi goes out of the city with an Earth Kingdom citizen named Jang Tae, who opposes the Fire Nation occupation of the city, in order to find his shirshu Kou and Jyoti the Airbender and Joji, Shizaku's aide. Jang Tae wonders about the group, and Moshi says that their current goal is to find passage to the Western Air Temple to reunite Jyoti with other survivors. Finding their group, Moshi is reminded that Jyoti is suspicious of the Fire Nation allies in the group, but Moshi thinks with Dharma's help they could overtake Shizaku and Toji, were it ever to come to that. Moshi sends Kou to hide in the forests around Yu Dao and with Jang Tae's help they sneak back into the city.
Trounced by the Fire Nation soldiers, Dharma remembers living on the streets of Ba Sing Se after escaping the Air Nomad genocide, being on his own and stealing to survive. He wakes from these troubled dreams to an even more trouble Toji, who questions the truth revealed at the checkpoint -- is Dharma an airbender? Dharma confides in Toji but asks to keep it from being a spectacle; he's still unsure of himself. Toji is doubtful of their friendship although Dharma attempts to solidify it.
Meanwhile, Shizaku is meeting with an Earthbender named Kobu in a growing weapons factory. Kobu explains he's trying to maintain amicable ties with Minoru, the Fire Nation Mayor-Commandant of the city. Shizaku questions the expansion of the war effort and if there's a better way for the Fire Nation to maintain "control" of the a city like Yu Dao without its imperialistic oversight. He calls out Kobu's notion of "peace," thinking of news ways to promote the Fire Nation's ideology among citizens who don't ascribe to it. This causes Shizaku to begin obsessing with an idea of discovering a different path to rule for the Fire Nation....
Back in the safehouse, everyone reconnects. Jyoti wants to get back on the road to the Western Air Temple. Toji is wary of heading towards an area the Fire Nation has control over, and wants to try to better weaken the Fire Nation's expanding grasp. Moshi calls him out, expounding his role in protecting the Air Nomad artifacts and people affected by the war. Jyoti calls on Moshi to help him as well.
Jang Tae, the Earth Kingdom dissident, says that Azulon is beginning to expand into the Earth Kingdom, and that the threat of the Fire Nation and Captain Shan will grow. Moshi uses this to press Jyoti into a defensive role -- they can hide the Air Nomad reliquary and continue to the bigger fight (the resistance camp Neila and her crew were headed towards). Shizaku brings up to Jang Tae that coexisting within the city will be more prosperous in the long run, and Jang Tae turns that back on the companions in discord.
Dharma mentions he trusts the decisions of the group and that, although motivations are not aligning, the overall goal and sentiment remains the same - how to best fight back against the Fire Nation. The group decides to hide Jyoti's reliquary and move eastward to meet with Neila's group by Makapu.
Dharma accompanies Jyoti in hiding the relics, and seeks guidance from the Airbending elder. Jyoti can tell Dharma is in a troubled spots and asks him to lean on his heritage - there's so few airbenders left. They find a spot with Kou the shirshu that only they will remember and bury the reliquary.
Toji tries to comfort Moshi (who was called out by Jyoti) but doesn't affect the monk much - Moshi is still contemplating his role in the current group. Shizaku sees Dharma come back from the trip with Jyoti and looks to guide him more into a serious role and question the young Airbender. Shizaku hears of Dharma's youth at the Eastern Air Temple and helps him feel less guilty about surviving on his own.
Shizaku sends Joji out to get supplies and the group prepares to trek eastward to join the fight....