The eighth episode of "The Haunted Palace" unfolds with Yeo-ri and the eunuchs engrossed in their quest to lift the malevolent curse. An inadvertent slip from Head Eunuch Kim reveals that Gangcheori has harbored concerns for Yeo-ri, leaving her taken aback. By the river's edge, the spectral apparition of the soul, acting under Pung-san's stalk command, drowns the King. Subsequently, it turns its vengeful gaze upon Gangcheori, only to be ensnared by a clever trap set by both the King and Gangcheori. Yeo-ri arrives at this critical juncture just as Gangcheori succumbs to unconsciousness. With swift action, she shatters the curse and, upon his revival, envelops him in an embrace.
Upon discovering the curse's dissolution, Pung-san lays blame at Yeo-ri's feet, citing her origins from Yongdam village. A haunting flashback unfolds, showing Pung-san as a silent witness to Neop-deok's demise. Meanwhile, at the riverside, Bibi witnesses the tender moment with a sinking feeling in her heart. In stark contrast, the King and his inner circle find amusement in Gangcheori's bewilderment at Yeo-ri's affectionate hug. The King and Gangcheori reach a tentative truce, prompting the former to rush to his recuperating wife.
Elsewhere, Gangcheori and Yeo-ri interrogate the male drowned spirit, whose skull was the catalyst for targeting the Queen. He consents to speak when Yeo-ri promises to reunite his remains with his daughter. When she relays this development to the King, his over-the-top affection towards her prompts jealousy in Gangcheori, who soon realizes that the King's behavior is merely a tactic to needle him.
Regarding the family reunion, the specter takes possession of Yeo-ri, offering solace to his daughter. At last, he unveils the truth: a blind charlatan, known as the yapper, has been manipulating him. Yeo-ri's mind echoes with the memory of the eight-foot-tall apparition also mentioning this blind yapper. It transpires that this yapper, accompanied by one of Kwak's ministers, has been fashioning talismans to fend off Bibi. We discover that nobles flock to him for protective charms, curses, and shamanic remedies for their adversaries, beloveds, and kin. Though skeptical, Kwak reluctantly accepts one such talisman.
In the bustling market, Choi Won-u frantically scours for a book that a rogue had touched, his requests somewhat nebulous yet his reward generous. Suddenly, the one-legged ghost strikes again. Fortunately, Ga-seop and Noh, who are in pursuit of Gangcheori, intervene and rescue Choi. Ga-seop, in a moment of wisdom, exhorts a perplexed Choi to atone for his sins against the one-legged specter.
Elsewhere, Gangcheori expresses concern for Yeo-ri, exhausted from the recent possession. He mocks the drowned ghost's folly, worrying about a daughter destined to live but a fleeting span of decades. Yeo-ri rebukes him for his hardness of heart.
Meanwhile, Pung-san, suspecting the ghost's betrayal, incinerates all incriminating evidence. His suspicions are confirmed as royal guards descend upon the Association of the Blind Fortune Tellers, arresting everyone within. The King interrogates Pung-san, aware of his visits to the Queen Mother. The shaman claims to have been offering solace since her husband's demise during the Year of the Water Rabbit.
That very night, Yeo-ri and Gangcheori find refuge at an inn for dinner. A playful spat ensues; he craves more food while she yearns to depart. Subtly, Gangcheori conjures rain, ensuring they remain stranded. As he watches her drift into slumber, she catches him in the act. She senses his burgeoning affection and he deflects, blaming it on Yoon Gap's form. In a moment of vulnerability, he concedes uncertainty. He then inquires if her smiles are meant for Yoon Gap or Gangcheori, leaving her flustered and prompting a swift change of subject.
In the confines of the prison, the blind shamans reprimand Pung-san for his ill-chosen associations, yet his arrogance remains unshaken, confident that his hold on dirt concerning the nobles will ensure everything proceeds in his favor. Precisely as if on cue, his clients rise to his defense, unity in their conviction. Even Kwak mocks the absurd scenario of the Queen Mother resorting to a blind seer to curse the Queen. Minister Kim echoes Kwak's sentiment, elucidating that any involvement of the Queen Mother necessitates the King's caution to avoid irritating her subjects. Relenting, the King orders the release of all the shamans, yet secretly tasks his inner circle with locating the Blind Yapper.
In a poignant conversation with Yeo-ri, the King reveals the sorrowful news of Neop-deok's demise in the Year of the Water Rabbit. Yeo-ri, realizing she has been unwittingly fostering a bond with her grandmother's killer, is engulfed by guilt. Her demeanor abruptly shifts towards Gangcheori, confusing him with her sudden frostiness. Captivated by Yeo-ri, the child ghost, unable to bear her distress, uncovers the truth—he witnessed Neop-deok being summoned thirteen years ago to banish an eight-foot ghost. Could this vengeful spirit have been the cause of Neop-deok's demise? Horrified, Yeo-ri flees.
Meanwhile, Gangcheori vents his frustration over Yeo-ri's inexplicable chill to Bibi, who then asks if he regrets falsely confessing to Neop-deok's murder. The narrative pivots to Yeo-ri quizzing the King about the events of the Year of the Water Rabbit. It was then that the eight-foot ghost possessed his father, prompting the summoning of Neop-deok for an exorcism, which ended fatally. Lee Sung subsequently married and ascended the throne, while Neop-deok met her end a month later, accidentally ignited and plummeting into the sea. They conclude that the eight-foot ghost's master orchestrated the deaths of both the former king and Neop-deok.
The dramatic climax of The Haunted Palace Episode 8 finds Minister Kim extinguishing the eight-foot ghost's fiery presence and administering a fierce beating to Pung-san, insulting him as a yapper. It transpires that Pung-san was the one who hired the shaman to eliminate the Crown Prince. Amidst his pledge to uphold their deal, Pung-san drops a bombshell—Yeo-ri is related to Neop-deok. As the eight-foot ghost's sinister plan unfolds, its fiery aura intensifies, heralding an uncertain fate.
