In Episode 3, Tao and Robert (aka Lloyd) face a lich in a dungeon, initially assuming it to be of a low level. Concerned for Robert's safety, Tao urges him to flee, fearing the lich's strength exceeds their abilities, and pushes him back toward the entrance.

When Tao confronts the lich, it dismisses her Qi techniques as inferior magic. However, it admits to having absorbed abilities from other adventurers. Tao attempts to repel the lich with a powerful Qi blast, but the effort leaves her exhausted and immobilized.

Unexpectedly, Robert returns to aid Tao, employing a blend of Qi and mana to challenge the lich's magic. His innovative approach gradually overwhelms the lich, who is surprised by the effectiveness of Qi techniques without incantations.

Back at the castle, in a subplot, Lloyd experiments with Enhancement Magic while examining the properties of a seemingly ordinary knife he found in the dungeon. Lloyd's analysis reveals it to be enchanted with mana, prompting him to experiment with crafting mana essence—though he faces difficulties due to a lack of high-quality materials. With the help of his family and the kingdom's resources, Lloyd attempts to gather the necessary ingredients for his experiments. Eventually, he succeeds in enhancing 50 out of the 120 swords provided.

The episode concludes with Lloyd and his brother Albert embarking on a monster expedition to test the enhanced swords.