Penguin has a celebratory parade with Nygma by his side. Back at the mansion, he's talking to the statue of his mom when Nygma shows up. He brings the statue to a press conference when the Red Hood Gang strikes, shooting at the mayor and knocking the head off the statue.
Valerie and Jim are at his place having coffee. She wants to know information about Alice and her blood. Jim won't talk, and Val tells him she is having dinner with a hematologist later. Jim isn't really jealous, but he is.
Barnes is looking at pictures when Bullock tells him they have a hit on the Red Hood Gang. Nygma makes an appearance and tells Barnes he's the mayoral liaison for the Red Hood Gang investigation.
Penguin is very upset about the statue and tells the heads of the gangs he wants the Red Hood Gang found and their heads delivered to him on a spike.
The RHG is at their hideout when Butch shows up. He's the leader.
Bruce wants to hire Jim to find Ivy. Jim questions Bruce about his relationship with Selina.
Nygma visits Lucius with questions about the evidence they found at the scene. Lucius threatens him.
Jim and Bruce get information from Bullock about Ivy and her sweater.
Lee tells Jim that Mario is a Falcone, but Jim already knows. He's not upset, but she's sort of upset. Has she let go? She sees Nygma when she's going back to her office and punches him. She uses Falcone to threaten him if he retaliates.
Tabitha and Babs pull a guy out of the freezer who has ties to the Red Hood Gang.
The RHG blow up a school bus and kill a priest. The kids they got off the bus are left with a message.
Back at the RHG headquarters, Butch tells them they are going to be at the Penguin's party. He doesn't want them to kill him, just cause a ruckus. Babs and Tabitha show up and want to talk to Butch.
Bruce and Jim are having lunch and talk about women.
Penguin is frantic about the RHG. Nygma calms him down.
Babs and Tabitha promise they won't tell Penguin. Tabitha tells Butch he'll owe him a favor. He tells her he was going to take down the RHG himself at the party to get back in Penguin's good graces.
Nygma figures out where the RHG are hanging out. He calls Butch to tell him. Butch books and heads to headquarters and kills the RHG before Penguin gets there.
Penguin holds a press conference praising Butch. Nygma is not happy now.
Bullock is investigating the crime scene. Nygma is there poking around and finds the suits Butch got for the RHG.
Barnes asks Lee about Alice's blood. She tells him what she found out so far.
Bruce and Alfred show up at the party. Penguin greets them. Bruce sees Selina and goes to talk to her.
Nygma figures out it was Butch and confronts him. He tells Butch he wants to kill Penguin and Butch is going to be doing it. Szasz takes Tabitha hostage to prove the point.
Ivy confronts Selina, but doesn't tell her who she is. Bruce asks Selina to go somewhere private.
Butch doesn't really want to kill Penguin, but he doesn't have a choice. Penguin is giving a speech when Butch shows up with the red hood on and shoots at Penguin, but the gun has blanks. Nygma tricked him. Penguin discovers that it's Butch and he's not happy. Tabitha gets away from her captors. Butch starts choking Nygma, but Penguin knocks him out.
Bruce and Selina are on the balcony outside and Bruce tells her that he likes her. She kisses him, then leaves.
Vale is at dinner with the hematologist. She wants answers, but he wants to get frisky. Jim shows up and the guy leaves. He is going to tell her everything about Alice. Aww.
Penguin is taking care of Nygma. They hug.
Butch is handcuffed in an ambulance. Tabitha leaves the Sirens and saves Butch.
At the GCPD, Barnes discovers he can walk without his cane. He's changing.
The Mad Hatter has a girl dressed up like Alice. He slices her throat and leaves a card for Jim.