Contains spoilers for this episode and earlier episodes.
A flashback shows Otto bringing the young Dodd to a cinema meeting with the man who killed Otto's father. Dodd kills the man while Otto shoots his guards. In 1979, Floyd tries to avoid another round of killing by proposing a partnership with Kansas City. Joe Bulo challenges her ability to control Dodd, who has already attacked his men. Kansas City rejects the counteroffer, reduces its purchase price and demands surrender. Simone inadvertently gives Milligan information about Otto's medical appointment. His men attack outside the clinic, killing Otto's protection but leaving him alive. Floyd finally tells her family to prepare for war.
In Luverne, Hanzee follows glass from the diner to the Blumquists' damaged car, then searches their house. He finds Rye's belt buckle in the fireplace and takes it. Lou also examines the car and confronts Peggy and Ed, warning that Rye's family will come after them. Both refuse to abandon their cover story or accept his offer of help. Their money troubles worsen when Ed learns that Peggy spent the butcher-shop deposit on her seminar. Betsy's doctor offers a trial treatment after explaining that her cancer has spread. Later, she studies the pill bottle while Lou sits outside, unable to sleep and worried about keeping his family safe.