Leaving off from the last episode, Danny and Colleen fend off Davos in the apartment. They chase Davos back into the warehouse, where Walker is waiting to kill him. Danny fights Walker because she wants to kill Davos. Misty escapes from being locked into a room and helps Danny turn Walker into Mary.
Colleen faces off with Davos in the street until their fists clash. Danny helps to hold down Davos as Colleen finishes the ritual and takes the entirety of the heart of the dragon from Davos. Colleen uses her fist to create a shockwave that knocks him over. He collapses and asks Colleen to kill him, doing what Danny was unable to do. Colleen says that if she did that, she would just be as bad as him.
Misty arrests Davos and the police arrive at the scene. Misty expresses her confidence in Colleen as the new Iron Fist, and they promise to reunite again.
Ward helps send Joy to the hospital for treatment. He goes to his NA meeting to finally speak, confronting Bethany about the baby. She tells him that she has to take care of the baby herself, and he is heartbroken.
Back at the apartment/dojo, Danny cleans up and finds Colleen’s heirloom box broken. The medallion on the front with the crane engraving has a mysterious opposite side.
Walker confronts Joy, who tries to fend off Walker. Walker reveals to Joy that she has a third alter that came out during Sokovia and that she’ll keep Joy on her radar just in case.
Colleen returns to the apartment to find a note from Danny. He has left to go to Asia to try and find the truth behind the Iron Fist. She finds the medallion on it, and the inverse side has the engraving of the symbol of the Iron Fist. Danny’s letter says that the story of the pirate queen was a story that was told in K’un-L’un, and this woman was the first Iron Fist. Danny suspects that Colleen may in fact be the descendent of this woman.
Months later in New York City, Colleen is out fighting crime on the streets. As she wields her familial katana and lights up her fist, the katana also glows bright white.
Danny convinces Ward to go to Asia with him to help discover the truth. They confront the people who had the body of the former Iron Fist. Danny now has two Iron Fists.
After the credits, Matt Murdock is in a confessional room, stating that he would rather die the devil than live as Matt Murdock.