Episode 7 of The Night Agent Season 3 begins with a flashback to 1995, when Monroe first arrived in Mexico. He was just a young lawyer then, sent to smooth over the partnership agreement between an American company and a Mexican soap and solvent company owned by Raúl Zapata. This is where he met Isabel's mom, Sofia.

While working on the partnership deal, he was approached by Costa, a CIA agent. She reveals that they suspect Zapata is using the business as a front for illegal activity. She threatens to bring charges against Monroe for using a local connection to bribe some Mexican government officials. Backed into a corner, Monroe opts to become a CIA asset to avoid prison.
Currently, Monroe watches CCTV footage from his house and realizes that Peter rescued Jay and Isabel. His bodyguard also warns him that the feds are closing in. While waiting at the hospital, Isabel tells Peter that she's okay with Monroe's impending arrest. She wants him to pay for his crimes. She calls him and asks for an explanation. They agree to meet in an hour. Peter decides to use this opportunity to bring Monroe in.
In another flashback, we see how Monroe started his relationship with Sofia while spying on Zapata. She told him about a certain old copy of Grimm's Fairy Tales that she used to read with her dad. She has been looking for a similar copy for years but has never found it.
In the present, Monroe and his bodyguard notice that they're being followed. They quickly lose him (Adam) and head to one of Monroe's offices. Unfortunately, The Father follows them and overpowers the bodyguard.
Monroe locks himself in the safe room and calls Isabel. He proceeds to make a deal with Peter in exchange for Peter saving his life. He promises to turn himself in and give them the intel they need to take down Zapata and stop the next LFS attack. Peter agrees on the condition that he gives them everything. In the meantime, The Father starts blowtorching his way inside the safe.
As another flashback carries us back to Monroe's time in Mexico in 1995, we witness the deepening of his love for Sofia and the beginning of their future plans. He even found her an exact copy of the book she had been searching for. Eager to start a new life with Sofia, Monroe met with Costa, who urged him to uncover solid evidence to take down Zapata if he wanted to leave. She explained that Zapata was financing a terrorist group and obtaining weapons for them. Left with no other choice, Monroe confided in Sofia, who was then pregnant. Initially disappointed, she agreed to help. However, they didn't gather enough evidence. Determined to uncover the truth, Monroe inspected the shipment containers and discovered a missile. Unfortunately, Zapata caught him in the act. Thankfully, Monroe convinced him that his legal expertise could be an asset to the company. The plan worked until the CIA betrayed Sofia to save Monroe. Zapata immediately took her, and when Monroe reached out to Costa for help, she turned him away.
The scene shifts to the present, where Peter saves Monroe from the Father. As they escape the building, Monroe emphasizes the significance of the fairytale book. It's the key to a secure online database containing all the intelligence Monroe has gathered over the years. As a sign of good faith, he hands it over to Peter. Unfortunately, Peter is forced to act as a distraction to give Adam time to rescue Monroe. In the end, the Father overpowers and sedates him. Sadly, Adam doesn't return in time to save Peter.
In another flashback, we return to 2001 when Monroe discovered the true identity of Costa and visited her. He confronted her and threatened to reveal her illegal activities and failures within the CIA. To save herself, Costa revealed that Zapata didn't kill Sofia immediately. She gave birth to their daughter and promised to help him find her. This is how Monroe discovered Isabel and met her when she was fifteen years old. However, Isabel believed he had abandoned her mother and refused his monetary help.
The episode concludes with Adam taking Monroe back to Peter's house, where Isabel is waiting anxiously. She's worried when she sees no sign of Peter.