Episode 8 of "Phantom Lawyer" begins with Na-hyun's mother reminiscing about the times she watched Na-hyun and So-hyun argue in their room, now empty and silent. Meanwhile, I-rang awakens to find So-hyun's ghost admiring the stars through his office window. Soon after, she witnesses three students bullying another, so she possesses him and intervenes, beating up his attackers. She ends up in prison, and when I-rang comes to, he finds himself locked up too. So-hyun remains with I-rang inside the cell, unaware that she is a ghost. When she learns the truth, she is initially angry about dying so young but then happy that she died saving Na-hyun when she regains her memory.
As So-hyun wonders about Na-hyun, she receives a call from Bong-soo about I-rang's arrest. So-hyun is happy to see her but also puzzled about her becoming an attorney and her cold demeanor. During a discussion with I-rang, Na-hyun doesn't listen to his explanations, insisting that he is in the wrong and should agree to settle with the family. So-hyun is frustrated with Na-hyun's approach and ends up possessing I-rang again. She confronts Na-hyun for being cold, inflexible, and inconsiderate, calling her annoying. Na-hyun angrily spits water in I-rang's face, ending the possession.
When Na-hyun walks out, I-rang lets So-hyun follow her if she's curious about her life. She hangs around Na-hyun, noticing that she no longer listens to music and doesn't answer their father's calls. Then she returns home and notices the rift in her family. They used to be happy, but now the parents are talking about selling the house and walking on eggshells around Na-hyun.
Meanwhile, Do-gyeong is hired to represent the boys, and he knows that they have been bullying Jun-ho for the past year.Somehow, they managed to get Jun-ho to agree to their statement that they were just standing around having a conversation when I-rang attacked them. The three are from influential families: Min-jae's father is the vice minister of health and welfare, and Ji-hyeok's mother is a law professor at Hanguk University.
Elsewhere, So-hyun regrets placing I-rang in a difficult position. Her family troubles weigh heavily on her mind, and she confides in I-rang. Drawing from his own experience following the loss of his father, I-rang explains that families sometimes drift apart during times of sorrow as sadness can be so overwhelming that it affects those around them. He believes that So-hyun can help bring her family closer together and promises to assist in any way he can.
Turning back to the case, I-rang senses that there must be a reason why Jun-ho doesn't act as a typical victim of school bullying. He tasks So-hyun with spying on Jun-ho and uncovering the truth. Meanwhile, Na-hyun searches for Jun-ho but finds him nowhere, neither at home nor at school.
In the meantime, So-hyun overhears a call between Min-jae and Jun-ho, where Min-jae orders him to meet at a cybercafé in a mall and bring the money. Jun-ho is upset and decides to bring a knife for their next meeting to defend himself. Na-hyun then speaks with her mother.
On his way to the meeting, So-hyun, inhabiting I-rang's body, stops Jun-ho. So-hyun recalls a case where a victim of bullying was sent to juvenile detention for fighting back against his bullies. She manages to persuade him to lay down the knife. It turns out that the reason Jun-ho isn't fighting back is because Min-jae and his friends forced him to get naked and filmed him. They're using the nude video to force Jun-ho to be their personal punching bag. Ignored by the police, they decide to take matters into their own hands to find the video and turn the case around.
Jun-ho is scheduled to meet with Min-jae and his friends at five o'clock, so they need to find the video before the meeting. They enlist Bong-soo and ghostly So-hyun to help with the mission. I-rang disguises himself as an electrician and hangs outside the door to notify Na-hyun and Bong-soo, who are waiting inside the internet café. Then, Min-jae and his friends arrive, but he and Ji-hyeok have to use the restroom, leaving Seo-won to head to the café first.
Bong-soo and Na-hyun hatched a plan to retrieve Seo-won's phone and uncover the video. Bong-soo posed as a celebrity, and Na-hyun offered to take their photo. As she scrolled through the phone, she failed to find the video. It turned out that Do-gyeong had advised the boys to get new phones, but Min-jae still possessed his phone and the video.
When Seo-won caught on to their scheme, a struggle ensued. He managed to warn Min-jae, who then fled the shopping mall. I-rang and So-hyun gave chase, while Na-hyun headed to the Taebaek law firm. Do-gyeong had reached out to I-rang's mother, attempting to coerce her into agreeing to a 150 million compensation payment. Na-hyun intended to stall him as much as possible to give I-rang time to find the video.
Min-jae encountered Jun-ho in an alley. Jun-ho confronted him about the bullying and demanded that he delete the video. He tried to fight back, but Min-jae was more powerful. However, Jun-ho persisted and managed to obtain the phone just as So-hyun arrived. I-rang stopped him from making a mistake.
Meanwhile, I-rang's mother was almost about to sign the contract when Na-hyun arrived in time. She stopped her and informed the plaintiffs that their sons had been arrested for aggravated assault, illegal filming, and distributing illegal content. Na-hyun won the case, and Do-gyeong tried to remind her that they were the same type of people who would do anything to win. He noted that Na-hyun had changed and wondered if it was because of I-rang. He warned her that I-rang could talk to ghosts, which could be dangerous, but she dismissed him and left.
On her way home, Na-hyun realized something. She realized that I-rang's mannerisms were similar to her sister's, So-hyun. She rushed home and found her diary, which used to be So-hyun's, confirming her doubts. To be sure, she took I-rang to the amusement park because it was So-hyun's favorite place.
At the end of the episode, So-hyun possessed I-rang, thrilled to spend time with Na-hyun. She was convinced that I-rang was So-hyun, so she ran to him and hugged him, crying with joy.
