The episode begins with Naofumi, Raphtalia, and Filo, known together as Team Rockvalley, continuing their participation in the underground arena of Zeltoble. After their first victory, they encounter Nadia, another fighter, who warns them about the dangers of nighttime ambushes. Despite this warning, Team Rockvalley continues to win battles and even employs illusion magic to make their victories appear hard-fought, thereby skewing the betting odds in their favor.

While shopping for supplies, they meet a merchant willing to invest in them. Naofumi declines the offer but agrees to let the merchant open a business in their country. Shortly after, they learn that their next opponent in the arena is Nadia, who is known for her powerful lightning magic and harpoon skills.

During the tournament, it is revealed that Nadia is actually Sadeena, a demi-human whom Raphtalia recognizes. A fierce battle ensues, with both sides unleashing powerful magic and abilities. Just as Team Rockvalley seems to gain the upper hand, the match is called off by the sponsors. Instead, an exhibition match is announced, pitting Team Rockvalley and Nadia against a new fighter known as the Killer Clown.

In a high-stakes battle, Team Rockvalley and Nadia join forces to defeat the Murder Clown. However, their victory is marred by accusations of cheating, as Team Rockvalley had bet on themselves under a false name. The situation resolves when it is revealed that Naofumi is the famed Shield Hero, and he collects both the battle prize and his betting winnings.

The episode ends with a heartfelt reunion between Raphtalia and Sadeena and the introduction of the White Tiger Siblings, Fohl and Atla, setting the stage for future adventures.