The premiere episode of "The Haunted Palace" unfolds with the enigmatic shaman, Neop-deok, weaving a tale of ancient lore for her inquisitive granddaughter, Yeo-ri. She narrates the saga of Gangcheori, a majestic dragon who, after an arduous millennium, stood poised on the brink of ascending to the heavens. Yet, fate intervened in the form of a curious child's gaze, jinxing his ascent and relegating him to the status of an Imugi, all his labors reduced to dust. This transformation has bred in him a fierce hatred for humanity, prompting him to unleash chaos upon the land.
Unperturbed by Gangcheori's fury, Yeo-ri defiantly challenges his scapegoating of mankind for his misfortunes. She declares her intent to become a shaman, vowing to vanquish him. Neop-deok, however, solemnly pledges to shield Yeo-ri from this perilous path. Outside, Gangcheori's eerie presence looms, his malevolent eyes fixed upon Yeo-ri's abode.
Thirteen years swiftly pass, bringing with them a grim turn of events. The young prince, possessed by an unseen force, wreaks havoc upon those near him. His father, King Lee Sung, remains steadfast in his disbelief of spirits, insisting that the prince's plight is a mere medical condition awaiting a cure. In stark contrast, Yoon Gap, a astute civil servant, harbors a belief in the supernatural and seeks to summon a shaman to save the prince.
Meanwhile, Yeo-ri has carved a niche as a skilled optician, having abandoned her destined path as a shaman. Her serenity is briefly disturbed when Lord Choi Won-u, accompanied by his daughter In-seon, enters her shop. In-seon is the target of a vengeful, one-legged ghost, weak yet relentless in his pursuit. Initially resistant, Yeo-ri eventually confronts the spirit, who seeks to punish Choi for the amputation of his leg. Yeo-ri laments the cycles of ancestral karma but employs her Ghostbane Stone, hoping to guide the ghost toward peace before his spirit corrupts into malevolence. Yet, the ghost remains unconvinced, seizing control of In-seon's body and fleeing into the night.
Meanwhile, the King dispatches Yoon Gap on a clandestine mission, tasked with persuading Lord Song, the Governor of Gyeonggi, and Lord Choi Won-u to lend their support. Returning to the spectral fray that erupted in the heart of the market, Yeo-ri narrowly expels the wraith from In-seon's possessed form, just as he flees the scene. Throughout this chaos, Gangcheori watches with amusement, his involvement in facilitating the ghost's possession of In-seon becoming increasingly apparent. As Yeo-ri storms away in frustration, Gangcheori trails behind her, sweetening his offer with promises of unparalleled power and grandeur should she embrace him as her patron deity and allow him to dwell within her. Meanwhile, Yoon Gap stands by, observing the scene before lending a helping hand to In-seon, escorting her back to her father's side.
The origins of Gangcheori's obsession with Yeo-ri are unraveled through a vivid flashback to thirteen years prior. Upon first glimpsing her, he began his relentless stalking, wreaking havoc upon the villagers. Neop-deok, with foreknowledge of Gangcheori's aspiration to ascend to Heaven should a pure and formidable shaman like Yeo-ri accept him, entrusts her with the Ghostbane Stone for protection. Enraged by this revelation, Gangcheori brutally slays Neop-deok in the midst of a sacred ritual. The villagers, misunderstanding the sequence of events, cast Yeo-ri out as a pariah. Determined to avenge her grandmother's demise, Yeo-ri solemnly vows never to acknowledge Gangcheori.
Within the palace walls, the Queen Mother and her younger son discover disturbing signs pertaining to the Prince's well-being. Despite the Queen's efforts to deter them, they insist on visiting the royal heir. Before the King can intervene, the Prince lashes out, injuring someone. Terrified, the Queen Mother flees the scene. The royal couple is plunged into a state of panic, fearing the Queen Mother's potential actions once she possesses irrefutable proof of their heir's incompetence.
Embarking on their clandestine mission, Choi holds a deep sense of gratitude towards Yoon Gap but steadfastly declines to endorse the King's perilous endeavor. Yoon Gap persists, asserting that Choi's endorsement would be the linchpin of their success. With that urgent plea, he departs, clutching Yeo-ri's optician kit that she inadvertently left behind during their ghostly pursuit. In-seon, curious about the nature of their bond, inquiries, to which Yoon Gap responds by likening Yeo-ri to a cherished sibling. He locates her amidst a lively haggle, utilizing her shamanic prowess to barter with a vendor. His amusement grows as he approaches, catching her off guard. She gazes at him in astonishment, and a nostalgic flashback transports them back to their innocent childhood days.
The bystanders overlook Yeo-ri, but Yoon Gap, moved by a tender impulse, decides to pluck persimmons for her. However, Gangcheori, sensing an impending disaster, rudely ushers him off the tree, revealing to Yeo-ri that the Imugi possesses a dark propensity to harm anyone who ventures close to her.
Presently, Yoon Gap extends an intriguing proposition to Yeo-ri – to serve as the King's personal optician. His insistence begins to sway her resolve. Nevertheless, Gangcheori, sensing a sinister undertone, adamantly refuses to permit Yeo-ri's journey to Hanyang, the royal metropolis. He accuses Yoon Gap of selfish motives and warns of the malevolent spirits that permeate the palace. To Gangcheori's chagrin, Yeo-ri finds the idea of venturing into a place that alarms him alluring. That very night, she is enveloped in a vivid dream, where she, Yoon Gap, and a younger version of herself share a heartwarming meal, causing her cheeks to blush with embarrassment.
Trouble is simmering on the horizon as Kwak Gyun catches sight of Yoon Gap exiting Choi's abode. With urgency, he rushes to his brutal uncle, Kwak Sang-chung.
The following day, Yeo-ri, driven by the belief that her vision signifies Yoon Gap's safety and survival, reluctantly agrees to his proposal. However, Gangcheori's malevolent influence causes them to wander in endless circles for days on end. Matters take a turn for the worse when Yoon Gap stumbles and sustains a painful injury to his leg. Infuriated, Yeo-ri marches off to confront Gangcheori, only to be ignored as he catches sight of the dreaded Kwaks.
The ruthless Kwak family confronts Yoon Gap, beating him mercilessly in a desperate bid to extract the King's covert mission from him. Despite their brutal efforts, Yoon Gap remains steadfast in his refusal. In a fit of rage, Sang-chung takes Yoon Gap's life. The noble then coldly instructs his guards to frame Choi as the murderer and departs, leaving chaos in his wake.
Having witnessed the entire harrowing ordeal, Gangcheori seizes the opportunity to possess Yoon Gap's lifeless body. Meanwhile, Yeo-ri, engrossed in gathering herbs for Yoon Gap's wounded leg, is startled when his ghost materializes before her. Her alarm intensifies when Gangcheori, now inhabiting Yoon Gap's form, hurls her Ghostbane Stone aside. She accuses Gangcheori of murdering Yoon Gap, a charge he attempts to refute with defiance. Their confrontation is abruptly halted by Yoon Gap's spirit, who lunges for his body only to vanish through it, leaving Gangcheori and Yeo-ri both stunned.
Seizing the moment, Gangcheori attempts to possess Yeo-ri next, but to no avail. As she reaches for the stone, the Imugi snatches it and flings it into the river below. Enraged, Yeo-ri strikes out at him and loses her footing. In a desperate bid to save her, Gangcheori reaches for her, and together they plummet off the cliff. Yoon Gap, frozen in horror, screaming and calling Yeo-ri’s name is a powerful end to the first episode of Ghost Palace.
