We open in Storybrooke with August in his room at Granny's. He's writhing around on his bed in pain. As he tries to get out of bed, he stumbles to the ground. After he picks himself off the floor, he makes his way over to the phone. Out of breath, he calls someone and cryptically tells them, "This is taking too long. We need to accelerate the plan."
Later, August uses Henry as a distraction in Mr. Gold's Pawn Shop while he enters the back room and searches for something. As he is looking around, Mr. Gold surprises him. August tells him he thought the back room was part of the store but Mr. Gold tersely corrects him, pointing him to the front of the store. As August walks out, something seems to click for Mr. Gold who looks serious and contemplative.
At the hospital, Emma asks Kathryn if she remembers anything that happened while Dr. Whale stands by. Kathryn tells her that she only remember that she was in a car accident and then was in the dark in some basement. Emma asks her if she remembers seeing anyone or anything that could help but Kathryn tells Emma she didn't see anything. She's shocked when Emma and Dr. Whale tell her everyone thought she was dead because her DNA matched that of a heart they found. Emma tells her someone tried to fake her death and frame Mary Margaret. When she asks who would do that, Emma and Dr. Whale share a look like they have someone in mind...
Which takes us to Regina, who's telling Mr. Gold, in his pawn shop, that he broke their deal. He tells Regina he's only broken one deal in his life and it wasn't this one. Regina says that Kathryn was supposed to die and Mary Margaret was to get the blame. Mr. Gold corrects her, she never said kill her -- they agreed something tragic should happen. He argues that Kathryn being kidnapped was tragic. Regina quickly realizes that all the questions about Kathryn will lead to her. She says it doesn't make any sense because he created the curse for her and wants to know why he did it. Mr. Gold gets right in her face, "You're a smart woman your majesty. Figure it out."
In Fairy Tale Land, Baelfire is almost run over by a donkey-cart. The Donkey Driver of the donkey-cart chastises him for being in the middle of the road until he realizes it's Rumplestiltskin's son. He begins to apologize profusely to Baelfire when Rumplestiltskin arrives. Everything looks like it'll blow over until Rumple sees that his son has hurt his leg. Rumple turns the Donkey Driver into a snail and steps on it to the horror of Baelfire and the townspeople.
Back in Storybrooke, David goes to see Kathryn. He apologizes for lying and cheating on her, "I'm sorry for all of this." She graciously accepts it, "David, it's okay. What we had wasn't... it wasn't it for you. Maybe for both of us. I can't blame you for being the first one to see it." David gives her a sweet kiss on the forehead, Kathryn smiles and he leaves.
At Emma and Mary Margaret's apartment, Mary Margaret is surprised that she has so many friends welcoming her home because it seemed like she didn't have many the day before. Henry asks August if he found what he was looking for in Mr. Gold's office. August says nope but he thinks what he's looking for will find him. As Emma leads Henry out to take him home she finds David at the door. She looks to Mary Margaret who motions that she doesn't want to see him. Emma tells him to give it time and enlists him to take Henry home. After Henry's gone, Emma asks Mr. Gold if he was responsible for Kathryn materializing. He deflects the question and asks what she knows about August. Emma tells him she knows he's a writer who goes by the name August W. Booth. When Mr. Gold asks if she trusts him, Emma says a lot more than she trusts him. She then walks off to join August.
In Fairy Tale Land, Rumplestiltskin and Baelfire enter their now extravagantly decorated hovel. Rumple tells the Mute Maid to fetch them some supper. Baelfire is upset that Rumple killed the man earlier. Then when Rumple tries to use magic to heal Baelfire's wounds, he is rebuffed. Baelfire tells Rumple that he is different now and that he hurts people all the time. Rumple defends himself saying he brought all the children home by creating a truce in the Ogre's War. Baelfire says he should be done with it but Rumple says he needs more power to protect him. Baelfire points out that he wouldn't need protecting if Rumple didn't have any power and asks if he's tried to get rid of it. Rumple shows his son the dagger, with his name etched on it, the one that could kill him and take his power. Then he offers it to Baelfire and asks if that's what he wants. Baelfire thinks there might be other ways to get rid of the power. Right then their Mute Maid walks in and he puts away the dagger. Baelfire get's serious, "Papa. If I find a way for you to give up the power -- a way that doesn't kill you or hurt me... would you do it?" Rumple says it's not possible but his son presses on and tells him he wants his father back. Rumple, "All I want is your happiness. If you find a way I'll do it." Baelfire smiles, shakes hands with his father, "Good. Then the deal is struck."
It's nighttime back in Storybrooke, Mr. Gold enters August's room at Granny's and searches through his things. As he flips through some papers on the desk, he finds one with the same dagger from Fairy Tale Land. The drawing is identical to the dagger and has Rumplestiltskin's name written on the blade just like in Fairy Tale Land.
At Granny's diner, Emma finds Sidney sitting in a booth and joins him. He's uncomfortable. Emma shows him the bug she found and tells him she knows he's working for Regina by spying on her and reporting back to her. When he unabashedly defends Regina, Emma realizes that he's in love with her. Then Emma gives him an ultimatum; he can help her or go down with Regina. And with that, Emma gets up and leaves.
On a street in Storybrooke, August gets on his motorcycle and rides off. In the distance, Mr. Gold starts up his car and follows him.
In Fairy Tale Land, Rumplestiltskin and Baelfire walk through the woods when they come upon a group of kids playing. Rumple encourages him to join them while he attends to some business. But when Baelfire tries to join the kids, they runs away for fear of getting on the wrong side of Rumplestiltskin. He sits on a log dejected. Morraine, the girl who was taken off to war at the top of ep 108, doesn't run and sits down next to him. She tells him she's not afraid of his father because she knows Baelfire won't let him hurt her. Actually, Morraine doesn't think he's so bad and recounts how she saw him on the battlefield when he stopped the fighting. It was like a miracle. He knows but says his papa is getting worse every day. Rumple told him he'd change back if he found a way. Then Morraine comes up with an idea for him, "Ruel ghorm." She tells him Ruel ghorm is an ancient being that rules the night, "The original power." When she hears Rumple coming back she wishes good luck to Baelfire and leaves with haste. Baelfire notes that his father has returned with blood stains on his boots. Then Rumple tells his son that they're going to need a new maid because she heard them talking about the knife. Baelfire is disgusted with his father.
Back in Storybrooke, Mr. Gold is outside the convent and watches August talk with the Mother Superior (the Blue Fairy in FTL). After August in gone, he approaches the Mother Superior and asks to know what August wanted. She balks at first but when he threatens to double the rent she relents. She tells Mr. Gold that August came looking for advice and counsel, "He came to town looking for his father after a long separation, and he recently found him. He asks if the happy reunion has taken place? She tells him it hasn't because they had a difficult parting and there are many issues to be resolved between them. That seems to hit Mr. Gold, "I see."
It's nighttime in Fairy Tale Land, Baelfire is out in the forest and calls for Reul ghorm to come help him. The wish is answered when the Blue Fairy appears. She tells Baelfire that she can't make Rumplestiltskin the man he was before. But she can send him and his father to place without magic where Rumple cannot use his powers. He asks if they have to leave and the Blue Fairy says it's the only way. She tells him he's a very good son and the part of his father that keeps him human, "That little light inside of him that still glows -- that's his love for you." Then she gives him a magic bean, it's the very last one that is known to her kind. The Blue Fairy says, "Use it wisely and follow where it leads you. It will save you both." After the Blue Fairy flies away, Baelfire rushes off.
Back in Storybrooke, it's night and David tries to apologize to Mary Margaret as she goes to get in her car. He tells her that he's only human and made a mistake doubting her. Mary Margaret just can't get over it. She thinks there is something in this world that is always trying to keep them apart. David tells her, "But I love you." Mary Margaret with tears in her eyes, "And that's what makes it so very sad."
In Fairy Tale Land, Baelfire returns to Rumplestiltskin to tell him he found a way for things to be like they were from Reul ghorm. Rumple says that Reul ghorm is the Blue Fairy and their fairy magic doesn't mix well with what he is. Baelfire says that she can help them go to a place without magic. His father tells him he'd be powerless and doesn't want to go. Baelfire stands up and stares at his father, "You made a deal with me. Are you backing out?" Rumple looks at his son, "No."
At Archie's office in Storybrooke, Mr. Gold goes to Archie to talk. After they're settled in, Mr. Gold tells Archie he thinks his son has come back to town to kill him. Archie is flabbergasted. Mr. Gold says he let his son go and he's spent his entire life since trying to fix it, "And now that he's finally here, I just don't know what to do." Archie tells him to be honest and tell him how he really feels. Mr. Gold says honesty has never been the best color on him. Archie, "There's no other way."
August is in the woods by Mr. Gold's cabin, studying the ground. Mr. Gold walks up out of the night, "I know who you are. And I know what you're looking for." August turns to him, "Well, then. I guess all the lying can stop... Papa."
In Fairy Tale Land, Baelfire puts the magic bean on the ground. It starts to spin and creates a void with winds ripping around it like a tornado. Baelfire starts to pull his father towards the hole but he's resisting. When Baelfire starts to get pulled in his father holds onto him and plants his dagger in the ground keeping them from getting sucked in the hole. Rumple does not want to go, but his son pleads and implores him that they must. Baelfire yells at his father that he's coward for breaking their deal. Rumple let's go of Baelfire because he won't go. Once Baelfire is gone the void closes and the winds die down. Immediately, Rumple regrets his decision. He digs at the ground, crying out for his son.
Back in Storybrooke, Mr. Gold faces the son he let get away from him and tells him he was always right, "I was a coward and I never should have let you go." August looks off in the distance. Mr. Gold bares his soul to his son and tells him that every waking moment since, he's been looking for him. Now that he's finally found his son, he knows he can't make up for the past but he asks to be forgiven, "I'm so sorry son. I'm so sorry Bae." August opens his arms up and it's a tearful reunion as August tells him he's forgiven. After a moment, August explains the he was looking for the knife because he thought if Mr. Gold still had it that would mean he hadn't changed. Mr. Gold tells him they'll go find out and see.
Later, deeper in the woods, Mr. Gold watches August dig for the knife. He tells August he put is there after things started changing when Emma came to town and because he didn't want Regina to find it. After they dig up the dagger, Mr. Gold offers it to August to destroy it like he always wanted to. He tells August that he chose the dagger before but now he's choosing him. August takes the dagger and revels in its craftsmanship. He steps back, points it at Mr. Gold, "By the power of the darkness, I command thee, Dark One." Mr. Gold stares at him with hollow eyes and something hits him, August is trying to control him. Seeing how Mr. Gold isn't obeying, he points the knife and tries again, "I command thee, Dark One." Now Mr. Gold is certain and levels a terrifying stare at August, "You're not my son. You're not Baelfire." August tries to cover as he holds the knife out at Mr. Gold. Mr. Gold tells August his son would never try to use him and that he'd know the dagger wouldn't work because he knows there is no magic in this world. Then Mr. Gold snatches the dagger from August's hands. Mr. Gold asks how he knows about the knife. August alludes to the fact that he's from Fairly Tale Land. Then Mr. Gold springs on August, pressing the dagger against his throat demanding to know how he knew about the connection between him and the dagger. August says a little fairy told him. Mr. Gold asks if August knows who he is, why would he take the risk? Resigned, August says because he'll die anyway because he's sick and needs magic. He was trying to get Emma to believe but doesn't think he'll live long enough to get it done. Mr. Gold says that Emma trusts him and that should be enough, "Try again." Mr. Gold then pulls back the knife from August's throat leaving August surprised that he is going to let him live. Mr. Gold, "You're gonna die either way. This way I at least may get something out of it."
In Fairy Tale Land, Rumplestiltskin cries out into the night sky, "Reul ghorm! Show yourself!" The Blue Fairy drifts down from the sky, but she's grim. He demands to know how he follows his son. She tells him that he had the way and chose not to follow it. And there are no more magic beans. He tells her that's a lie. The Blue Fairy tells him, he'll never make it to the other world. He knows there has to be another way and when he mentions a curse, her reaction tells him that's the way. She asks him if he'd be willing to sacrifice this world for the next? Rumple sneers, "What do you think?" The Blue Fairy say she'll comfort herself with the fact that he doesn't have the abilities to come up with that kind of curse. Rumple says for now but he has all the time in the world, "I will do nothing else, I will love nothing else. I will find a way." He accuses her of taking his son away. She tells Rumple that it was him that drove his son away. After that Rumple loses it, rips out his knife and slashes at the Blue Fairy. She eludes the strikes and flies off as he shouts at her, "I will find him."
Back in Storybrooke, Emma walks into the Sheriff's Station to find Regina waiting for her. She's brought Sidney in to confess to kidnapping Kathryn. He gives Emma all the details of the crimes. When Emma demands to know why he did it, Sidney tells her it was to be the hero that found Kathryn after the conviction, get a great story and all the accolades that go with it. Emma's not buying it but he's sticking to the story. Emma tells Regina she wants a word with her out in the hallway. Once in the hallway, Emma tells Regina she knows it was her who was behind all of this. She understands that Regina owns the game and that she's set the board so no one else can win but she's about to start playing an entirely different game. Regina begins to reply, but Emma shuts her down and calls her a sociopath. Emma tells Regina that she tried to take away someone she loved, and now Emma is going to take away someone Regina loves. Emma, "I'm taking back my son." It's on.