A Kansas City syndicate suit is lecturing a man and a woman at an office about what it takes to make it. Mid-lecture, they are gunned down by two "window-washers" outside the window, brandishing machine guns.
The Gerhardts lay Otto to rest at his funeral, next to a headstone and empty grave for Rye. Simone lays Rye's belt-buckled on his grave. Meanwhile, Milligan, Gale Kitchen, and the other Kansas City men continue to take out rivals.
Bear and a man from Buffalo named Ricky report back to Floyd and Simone that several of their men have been killed and South Dakota has turned, now with Kansas City. There has been no word on Dodd and he remains missing since the confrontation in Luverne. Simone makes a callous remark about her father and Floyd slaps her. Simone runs off angrily and Ricky tries to follow her, to rein her in.
Ben Schmidt and Lou Solverson arrive at the Gerhardt compound and request that Floyd come down to the police station with them for questioning. Bear begins to resist them but Floyd agrees to go. Bear asks after Charlie. Lou reports to him that Charlie is in the state penitentiary, awaiting trial for attempted murder, and suggests that Bear visit Charlie. Lou asks Bear where Dodd is. Bear lies, saying Dodd found Jesus and joined a monastery, which Lou knows is an obvious lie. As Ben and Lou drive away with Floyd, Ricky reports to Bear that there is someone on the phone for him with information about Dodd's whereabouts. Bear, unfazed, tells the other man to take a message.
Down at the Fargo station, Lou, Ben, Hank and Gibson discuss why they've brought in Floyd: Lou and Ben intend to apply pressure to both sides of the Gerhardt-Kansas City war, in an attempt to resolve the violence. Lou mentions that there is an APB out on both Ed and Peggy, but that they may both be dead. Hank expresses regret for not having checked on Peggy before he left the Blomquist house to find Lou.
Hank and Gibson question Floyd about all of the recent deaths. Hank mentions his encounter with Dodd to her. Floyd insists that Ed killed Rye on orders from the Kansas City mob, suggesting that Ed was a sleeper agent, despite Hank's insistences that he's known Ed since he was a child and his certainty that Ed wouldn't be working for the mob. Gibson suggests that the violence won't stop until Floyd gives the go ahead, but Floyd tells them that Dodd and Bear won't stop since they've already lost too much. Hank asks Floyd to give them information on Kansas City, so law enforcement can intervene and prevent more violence there. Floyd is resistant to the idea of snitching.
Simone drives to the Pearl Hotel to see Mike Milligan. Milligan talks to Hamish Broker, a Kansas City bigwig, on the phone. Hamish reprimands Milligan for his ineffectiveness as he stands among those who were killed in the office in the opening scene. He threatens to send in the Undertaker if Milligan does not take care of the Gerhardt situation.
Simone barges in and confronts Milligan for having her grandfather killed. Kitchen restrains her as she rails against Mike, telling him that he could have killed her or her grandmother in the crossfire and that she had told him to kill her father, not Otto. Mike tells Kitchen to kick Simone out, but then thinks better of it, realizing that she is likely her grandmother's favorite. Milligan gives Kitchen the order to kill Simone, but they are interrupted by Lou and Ben knocking at the door. At Simone's scream for help, the officers bust in the door and hold the two Kansas City men at gunpoint. Ben nervously escorts Simone out as Lou holds his gun on both Kitchen and Milligan.
Simone flirts with Ben Schmidt in an attempt to convince him not to tell Floyd that she was at the hotel with Milligan. He does not give in, so she knees him and leaves him writing in pain in the elevator, escaping to her car. On her way out, she runs into Bear and Ricky. They intercept her and tell her that Bear will drive her home, while Ricky will take her car back to the compound. She uneasily gets in the car with her uncle.
Lou talks to Kitchen and Milligan, lecturing them about attempting conquest, and to own things that shouldn't be owned. He tells them that they ought to leave. He suggests that the problem is greed, the sense of "all or nothing." Ben Schmidt returns, a bit disheveled, but refuses to tell Lou what happened. Mike Milligan tells Lou and Ben a parable about a thief, relating it to the idea that occasionally, an answer is too obvious to be seen clearly. Lou and Ben leave, with Lou warning Mike that the next time he visits, he won't say hello before he shoots.
Betsy arrives home and realizes that someone is in her house. She creeps up, brandishing a shot gun, but finds that it is only Karl Weathers and Sonny, cooking food. They tell her that they were asked by Lou to stay over and look after Betsy and Molly while Lou is out of town.
Bear drives Simone out, as she tries in vain to make small-talk with him, asking after Floyd and trying to explain that she was just at the hotel to buy weed (since Dodd forbid everyone on the Gerhardt side from selling weed to her). Bear breaks his silence to ask why Simone hasn't asked about Charlie. Simone does ask, and suggests they visit him in state pen. When she refers to Dodd as Dodd instead of Dad, Bear reprimands her. She reacts angrily, mentioning the terrible things Dodd does to her and asking what Dodd is to Bear. Suddenly, Simone realizes that she doesn't know where Bear is driving her.
Bear pulls over. He mentions that Dodd took Charlie. Bear marches Simone far out to the middle of the woods, revealing that he knows about her betrayal. Simone tries to reason with Bear, insisting that it was not her fault since Dodd refused to let Floyd negotiate with Kansas City. She insists that she is the victim. He makes Simone kneel and hold a gun on her. She tries to tell him that he can just banish her but he tells her that it's already done.
We do not see Simone's final fate, but Bear walks back to the car on his own, angrily beating the arm that is in a cast against the car. He drives back to the Gerhardt compound where Ricky again tries to tell him that a man called with knowledge of Dodd's whereabouts. Bear tells Ricky that there is no Dodd anymore, and when Ricky accuses him of being cold, Bear intimidates the other man into submission.
Lou calls Betsy at the house, checking in. He admits that things are bad out there. She asks him to come home soon. Hank reports back to Lou that it seems that Floyd is going to flip and give information on Kansas City, that they've convinced her it is the only way to resolve this with a "win" for the Gerhardts.
After pressing Hank and Gibson to ensure that she and her family are covered and will not be indicting for any crimes (including past capital crimes), Floyd gives up all of the information she has about the Kansas City trucking cover and where they hide their weapons.
Milligan gets a phone call from Hamish, who tells him that the Undertaker is coming and that Milligan is done.
Bear picks up Floyd at the police station. She tells him that he needs to call in Hanzee and find Dodd because the war is almost won.
Hank and Lou discuss what to do now that they've thrown in with the Gerhardts. Hank mentions that Hanzee was spotted in Sioux Falls, where he shot two officers, killing one and gravely wounding the other. They ascertain that he is searching for Ed and Peggy and that he is getting close. They also guess that Dodd must not be far behind Hanzee. Ben gets twitchy about making a heroes' stand in Sioux Falls. Lou insults Ben and then says that he and Hank will go to Sioux Falls.
Betsy and Karl have a talk, where she confesses to him that Lou was originally supposed to marry her older sister Lenore, but Lenore did not wait for him to get back from Vietnam so he wound up with Betsy instead. She asks Karl to look after Molly and Lou when she is gone. Karl resists hearing it, but Betsy tells him that she is pretty sure she got the sugar pills instead of the experimental cancer drug. He hugs her. Later that day, Betsy goes to her father Hank's house to feed his cat while he is away with Lou on the case. She goes into his office and finds the room covered with sketches of symbols; surveying them all, she gets woozy, leaning against the desk unevenly.
Back at the Gerhardt compound, Floyd asks Bear to have Simone come see her. Bear lies, telling Floyd that Simone left in a hurry and doesn't seem to be back yet. Ricky tries to intercept Bear and pull him away to give him an update privately. Floyd insists that there be no secrets, so Ricky tells her that Hanzee is on the phone and has information about where Dodd is. Floyd runs into the house to answer the call, with Bear trailing behind her.
At the Pearl Hotel, Mike Milligan awaits the Undertaker's arrival, sprucing up as he waits. When the Undertaker and his men arrive, Mike approaches, with hand outstretched in greeting. With a gun hidden in his sleeve, he shoots all of the men dead. Moments after, he receives a call from Ed, who tells Mike that it is Mike's lucky day -- Ed has Dodd in his trunk, if Mike wants him.
Ed hangs up and starts up his car, driving away.