Episode 3 of Percy Jackson Season 2** begins with Clarisse approaching the Oracle for her quest to find the Golden Fleece. The Oracle delivers an ominous prophecy, hinting at an iron ship, soldiers of bone, and cryptic comments about failure and being entombed in stone. Meanwhile, Percy, Annabeth, and Tyson board a ship called the Andromeda. Percy now knows that Annabeth is keeping something important from him, but he encourages her not to tell him and to use the codeword "boon" if he's in danger. She agrees. At this point, Tyson realizes that there are monsters on the ship.
Back at camp, Clarisse decides to embark on the quest alone. Ares appears and leads her to an iron boat run by dead soldiers, as he has the power over those who have been defeated in battle. He emphasizes that he expects her to succeed and that failure will not be tolerated lightly.
On the ship, the trio encounters three Laistrygonians, the same cannibal giants from Episode 1. They meet a demigod named Alison Simms and join forces with her briefly before Percy realizes from his dreams with Grover that she had ambushed him and was working for Luke. A fight breaks out, and Alison falls off the ship, allowing Percy and Annabeth to retreat to their hideout. They search through the items Hermes gave Percy and find a golden card with a scythe on it, which also bears the same logo as the ship. The Andromeda is Luke's ship!
Percy devises a plan to ambush Luke then and there, but Annabeth doesn't want to kill him. She believes there's still hope for Luke and agrees to find a way to remove him from the ship. They use the golden card to access the elevator and reach the admiral's suite where Luke is located. On their way, Percy keeps hearing whispers from Kronos.
Unfortunately, Luke, Alison, and their allies realize that Percy, Annabeth, and Tyson are just outside the door and surround them. Luke speaks to Percy and Annabeth while his people take Tyson elsewhere. He shows them a giant coffin that will be used to gather the various parts of Kronos. However, they need the golden fleece to heal Kronos and give him a new body. That's why Luke poisoned Thalia's tree so that the camp would send demigods to find the fleece.
Annabeth and Luke's argument escalates as he reveals the Great Prophecy to her, only for her to realize that Percy is unaware of its contents. Luke then leads them to a section of the ship where demigods and monsters are working and training together. He proclaims that Kronos' plan will usher in a more equitable world where both demigods and monsters are free. However, he seems unconcerned about the devastating consequences of a war between the Titans and the Gods. Tyson, working alongside the Laistrygonians, creates a bomb as a distraction that allows the trio to escape the ship on a lifeboat. Once they're out in the open sea, Percy uses his thermos of winds to propel them away from the Andromeda at top speed.
Meanwhile, back on Clarisse's ship, she struggles to gain the sailors' respect and obedience. In a rousing speech, she reminds them of their past victories and encourages them to return as heroes after this quest. The sailors are inspired by her words and decide to do their best. That's when one of the sailors informs Clarisse that the coordinates she received from Tantalus are incorrect. Remembering Percy's claim that he had the dream, she decides to search for him instead.
On the lifeboat, Annabeth realizes that Luke has made some valid points about the Gods using the children for their own purposes. She urges Percy to be aware of his own destiny. She explains that the Great Prophecy refers to a child of one of the Big Three Gods who, at the age of 16, will either save or destroy the age of the Gods.
