In a flashback, Chung-myung ses the bandits' possessions from being burned and has them collected in a coffin instead.
Chan-sung snaps out of his daze and asks Man-wol who was that man. They both wonder if Chan-sung is the reincarnation of Chung-myung. Chan-sung tells Man-wol of his latest dream, in which he saw Chung-myung waiting for her by the lake.
Yoo-na encounters Hyun-joong's sister in the hospital and chats with her. An older man arrives and identifies himself as Hyun-joong, her brother, and Yoo-na becomes confused. She says that she thought Hyun-joong died, and the old man becomes rattled. Hyun-joong whisks her away.
Ms. Choi speaks with Chan-sung. She realizes that Chan-sung has brought people from Man-wol's past life to her. She asks if Chan-sung is someone who knew Man-wol in that life, but Chan-sung says no. Ms. Choi wonders why Magu chose Chan-sung.
Magu asks Man-wol if she will let Chung-myung pass by, adding that he's already here, by her side. Man-wol asks if Chan-sung is Chung-myung. Magu refuses to answer, but asks if he is, will Man-wol see him as the man she hates and vanish, or the man she loves and be sed? Magu gives Man-wol the hairpin that Chung-myung had made for her but was never able to give to her. It is covered in Chung-myung's blood and is ill-omened.
Chan-sung asks the Grim Reaper who the first guest of the hotel was. The Grim Reaper only answers that he has not yet escorted that guest to the afterlife.
Man-wol gives the hairpin to Ji-won's ghost, making him more powerful. She explains that she knows Chan-sung is the reincarnation of Chung-myung, and since she can't bring herself to kill him, she will let Ji-won do it instead. She accepts that this will mean her destruction. She returns to the hotel and barricades herself in the garden. Magu in black appears.
Chan-sung goes to the second Magu sister to ask if it's really true that he is Chung-myung. She tells him no, and shows him the firefly, now trapped in a jar. She adds that he was the first guest at the hotel.
Chan-sung recovers the hairpin from Ji-won and the Grim Reaper finally catches Ji-won. Chan-sung arrives in the garden in time to prevent Magu from destroying Man-wol.
Ms. Choi brings Ji-won to meet the ghosts of the people he murdered. She stands outside the door as his screams are heard.
Man-wol invites Mi-ra and Young-soo to the hotel and Mr. Kim serves them drinks that will allow them to remember their past lives.
Mi-ra remembers herself as Princess Song-hwa telling Chung-myung that her father suspects him of being in league with the rebels and that he and everyone he knows will be executed. But if he captures the bandits, her father will no longer suspect him.
Young-soo remembers his life as Yeon-woo and the day Chung-myung captured him. Chung-myung explains that he's doing this to se as many lives as he can from being executed. Yeon-woo tells Chung-myung to se Man-wol and never reveal the truth to her.
In the garden, Magu tells Man-wol that Chung-myung was the first guest of the hotel and has always been there. Man-wol is not the only one who has been paying for her sins.
In a flashback, Man-wol swears to Chung-myung that she will kill him at all costs. He replies that to do that, she will he to stay alive. Later, he watches in shame as the bandits are executed.
Man-wol says Chung-myung's name for the first time in 1,300 years, and he appears. They talk briefly. Man-wol says she has finally freed herself and there is no more need for him to stay. The hairpin turns to ash and Chung-myung becomes a firefly again. Magu tells Man-wol that she needs to send Chung-myung off to the afterlife; that will be her last punishment.
Hyun-joong finally tells Yoo-na that he will be leing soon, once his sister dies.
Man-wol takes the limo to the afterlife with Chung-myung to see him off. She asks Chan-sung to wait for her.
A month later, life at the hotel continues normally, but Man-wol has not returned and the tree is dead once again. Hyun-joong speculates that this means she won't be coming back. The staff tells the Grim Reaper that they want Man-wol back. They're sure she won't lee Chan-sung behind. The Grim Reaper tells them that if she has set foot on the bridge to the afterlife, she might not remember him any more. We see Man-wol and Chung-myung slowly walking across the bridge together. She stops, he reaches out his hand to her, but she turns around and heads back.