PIK explains to MANG that she will not recognize LUI for fear that the incestuous love between him and WONG YEE will break his heart. MANG makes LUI work in Celestial Sword Foundry in lieu of the debts he owes the family. WONG YEE asks to leave the palace in order to bestow a book on her benefactor. PO reckons that she will seize the chance to meet her lover and hatches a plan. FUNG demands PIK to surrender LUI to clear her of suspicion but PIK only pledges to confine him to the foundry. YEE returns to the Lakeside Academy and seeks to gather the news of LUI and MANG from CHO; her hands tremble upon receiving LUI’s letter asking to meet her. SANG pretends to suffer from an injury in order to keep LUI forging swords throughout the night. With his lie exposed, SANG tells LUI the truth. LUI declares that he will never again meet the imperial concubine. WAI brings LUI an urgent letter from WONG YEE with an invitation to an appointment……