The gripping narrative of "The Haunted Palace" unfolds in its tenth episode, kicking off with a tender yet aborted kiss between Yeo-ri and Gangcheori. Just as their lips were about to meet, they snap out of their trance and dart away, leaving an air of unspoken tension in their wake. Yeo-ri finds herself lost in contemplation, while Gangcheori can't help but blush and chuckle to himself, his amusement evident. He even confides in Bibi, who responds with irritation, swayed by her belief that all mortals are fickle-hearted and might inadvertently cause Gangcheori's brother harm.
Elsewhere, Kwak pays a visit to Pung-san, remaining skeptical of Imugis despite taking a powder believed to repel Gangcheori. The following day, Mrs. Yoon urges Gangcheori to keep a close watch over Yeo-ri. As they venture towards the palace, Yeo-ri displays a bashful demeanor, while Gangcheori strives to impress her, even attempting—albeit unsuccessfully—to hold her hand.
Within the palace walls, Gangcheori endeavors to show respect to the King for rescuing Yeo-ri, but the atmosphere remains tense, prompting him to abandon the notion. The conversation shifts to the recent attack, with the King coming to Minister Kim's defense, citing his alibi. They resolve to uncover the identity of the eight-foot ghost and address its unresolved grievance. Judging by its combat prowess, they speculate it might have once been a military officer. Gangcheori ponders deeply, realizing he must sacrifice his pearl to truly vanquish the specter. Unaware of his turmoil, Yeo-ri takes his hand, gently pulling him away, amusing the onlookers.
Meanwhile, Minister Kim's machinations continue as he orchestrates a meeting with Yi Hwa-seong, a distant cousin of the King whose father has passed away, rendering him an outcast. Sensing an opportunity, Kim offers Hwa-seong a chance at redemption. Under Kim's directives, Hwa-seong feigns profound devotion during a memorial service for Prince Yeong-in, led by Pung-san. The Queen Mother, keenly observant, takes note of this seemingly devoted cousin.
Gangcheori unleashes his vengeance upon Kwak, wielding Yeo-ri's shamanic mirror to disintegrate the talisman and strike with relentless force. Pung-san's mystical powder proves ineffective against him, and he swiftly brings the minister to his knees. Just when it seems Kwak's fate is sealed, Bibi arrives on the scene and devours him, adding a grim twist to the tale.
Minister Kim and the King are agitated over Kwak's demise, albeit for contrasting reasons. The King mistakenly assumes Kwak orchestrated the rebellion solo and intended to mete out justice. Head Eunuch Kim brings up whispers of an Imugi-defying talisman, hinting at Pung-san's creation. Ironically, the King crosses paths with Hwa-seong exiting the Queen Mother's chambers, sparking mere curiosity in him as he ponders over her potential search for a Yeong-in successor. Suddenly, a novel drama unfolds: the Yoons are on the brink of financial ruin, their provisions and funds dwindling.
Gangcheori, finally receiving his hard-earned pay, squanders it all on sweets, a hairpin, and shoes. His path crosses with monks Noh and Ga-seop, and he finds himself compelled to escort them home. A tempest arises as Mrs. Yoon attempts to discipline Gangcheori for his impulsive spending. He nonchalantly remarks that the hairpin is meant to replace the one she sold to procure his amnesia remedy.
The monks, in an unexpected twist, return Yeo-ri's ghost-warding stone, which they fortuitously encountered. Yeo-ri inquisitively asks Ga-seop about her grandmother's demise, and a poignant revelation unfolds: he not only knows the truth but bears a heavy guilt. It transpires that he was the one who recommended her for the perilous exorcism, a decision that now weighs heavily on his conscience.
Nearby, Bibi provides Gangcheori with an update, revealing that Pung-san is the mastermind behind the talismans. Moreover, Pung-san's possession of powerful fire energy arouses Gangcheori's suspicions. They eventually rejoice over their triumph over Kwak, and Bibi is moved when Gangcheori offers to assist him in ascending to a higher spiritual plane. However, Gangcheori insists that they keep this from Yeo-ri. That very night, he catches Yeo-ri admiring the shoes, which she intends to return because they desperately need the money. He stops her, reminding her of last summer when he noticed her longing glances at a similar pair. She's astonished to learn that, despite her belief of being alone, he was always nearby. She vows to aid him in his ascension, even after she rescues Neop-deok and Yoon Gap. Just as he's about to kiss her, he's repelled by the ghostbane stone. She desires to set it aside to kiss him, prompting him to tease her playfully.
The next day, the King presents his plan to Gangcheori. Several strange deaths,类似 Hwa-seong's father's, have occurred, and by tracing their origins, they might uncover the individual harboring the ghost's grudge. They await Yeo-ri's arrival, unaware that she has been abducted by Pung-san's assistant, whom she suspects to be the Blind Yapper. Meanwhile, the King attempts to confront Pung-san, who is in the company of the Queen Mother, while Seo and Gangcheori set out to search for Yeo-ri. She leaves a trail for them, leading straight to the Blind Fortune Tellers' Association. Gangcheori discovers Pung-san's clandestine shrine concealed behind a painting.
At the climax of The Haunted Palace Episode 10, Pung-san arrives on the scene, and he is possessed by an eight-foot ghost. Seo dashes off to seek assistance as the ghost launches an attack on Gangcheori. The specter reveals that when he was born a century ago, he witnessed Gangcheori's fall. Yet, it is the royal family who bears responsibility for the Imugi's demotion.
