Episode 2 of Our Flag Means Death Season 2 kicks off with Stede reminiscing fondly about his time with Ed, unaware that Ed, on his own ship, is equally lost in those same memories. He fiddles with two figurines, remarkably resembling them both, and in a moment of profound emotion, throws them overboard with tears in his eyes.
On the Red Flag, Zheng Yi Sao's vessel, the crew awakens to the cheery presence of Auntie. She distributes uniforms and familiarizes them with the workings of this all-female crew, with a notable exception. Lucius, whom Auntie affectionately calls "Rat Boy," emerges as the lone male member. The crew's joy knows no bounds as they reunite with their beloved Lucius.
Lucius spins a tale of falling overboard, but Auntie soon dispenses duties, pairing Stede and Lucius to Lucius' chagrin. She turns to Buttons, addressing him as the sea witch in human form, and presents him with a spellbook on human-non-human transformations, much to his delight.
Meanwhile, on The Revenge, Ed's mood is buoyant as he speaks with Frenchie. He inquisitively probes Frenchie about Izzy's fate, and Frenchie confirms that he did indeed kill her. After a profound discussion on trust, Frenchie enters a concealed chamber, where a wounded and agitated Izzy is hiding. Jim and Archie lend a hand, and it becomes evident that Izzy's leg must be amputated. The gruesome procedure is followed by squelching sounds and a spray of blood.
Once alone, Lucius finally confesses to Stede that Ed was the one who pushed him overboard. Furious, Stede storms off, aggrieved by Stede's apparent lack of concern.
Once again, Auntie approaches Buttons, referring to him as the sea witch. She hands him a tome on transformations, which fills him with joy. Frenchie is busy assembling a first aid kit when Ed confronts him, revealing that he's well aware of the foul odor emanating from Izzy's decaying limb. Inside the secret chamber, Jim and Archie share a moment of intimacy after successfully amputating Izzy's leg, only to be interrupted by Ed's arrival.
Elsewhere, Zheng Yi Sao assigns Olu filing duties, but Auntie knows that her soft spot for him is not just professional. When Olu inadvertently messes up Auntie's map of ships around the world, Zheng Yi Sao escorts him upstairs. She confesses that she cherished the moments when he visited her soup stall.
As the crew indulged in their lunch break, Lucius indulged in a smoke, his tone laced with sarcasm towards Stede. A casual remark from Black Pete about Lucius' moniker 'Rat Boy' ignited a fury within him, and he strode away in a huff.
Ed confided in Izzy, revealing a nightmare where Izzy took his life. He handed Izzy a gun and turned his back, yet Izzy sensed Ed's fear, a desire for someone else to pull the trigger. Izzy declared his refusal to "tidy up Ed's mess." As Ed departed, a gunshot rang out from within. Frenchie braced himself for the worst, but was bewildered when Ed spared him. Instead, he seized the steering wheel and veered sharply.
Stede persisted in urging Lucius to confront Pete about his grievances. Lucius confessed that he had resorted to unspeakable acts to survive the ship-to-ship migrations. One crew had devoured the ship's beloved rat terrier, Pepper, and Lucius was subsequently forced to chase rats and pluck them out with his mouth. Stede was deeply disturbed yet heartened by Lucius' candor.
The crew of The Revenge grew increasingly uneasy as Ed steered them straight into a tempestuous storm, having even discarded the steering wheel. To avert catastrophe and prevent their demise, Ed challenged Jim and Archie to a fight to the death. Jim refused, but Archie retaliated with a punch.
Lucius informed Stede that he had spoken with Pete, and their relationship had improved. The conversation shifted to Ed, whose prospects Stede still cherished. Lucius offered a blunt assessment, declaring that some people were simply beyond repair.
Jim, victorious, stood over Archie, yet they refused to strike the fatal blow, realizing that Ed's actions would have spelled doom for them all regardless. As Ed aimed to blast a hole in the mast, a bullet struck him from behind. It was Izzy, miraculously alive, having clawed his way to the deck on a single leg. In the aftermath, Ed lay motionless, surrounded by the crew. Jim heaved a mammoth stone, poised to crush it down upon Ed.
