Episode 7 of "The Penguin" kicks off with haunting flashbacks to a younger Oswald Cobblepot, affectionately known as Oz. He was the enigmatic black sheep of the family, a fact subtly highlighted by a poignant scene where he watches in silent resentment as his mother brushes off his attempts to engage in play, while a shadow of jealousy looms over his figure. When his siblings, Benny and Jack, step in to mediate, Francis swiftly rises to join in their antics, leaving Oz's mother perpetually engrossed in her laborious tasks.
It is during this tender age that Oz catches his first glimpse of the criminal underbelly. Rex, a powerful figure in Gotham's underworld, casually slips Jack a fifty-dollar bill during their outing. Oz, fascinated and impressionable, takes note, but Jack, wary of his younger brother's impressionability, cautions him against getting entangled with such unsavory characters, clarifying that the money is for their mother's well-being.
The trio then descends into the labyrinthine sewers, initiating a game of hide and seek. However, Oz's frustration boils over when he realizes his brothers aren't playing fair due to his injured leg. In a fit of anger, he traps them in the dark confines of the sewers and storms off, intending to return home alone.
Unfortunately, his brothers don't manage to escape, prompting Oz to concoct a tale about them being at the movies, allowing him to monopolize Francis's attention. As he settles in to watch a film, his eyes are drawn to the mesmerizing scenes of men clad in top hats and tailored suits, dancing with a flair amidst gunfire and excitement—a precursor to the iconic Penguin attire. Even in this charged atmosphere of chaos and criminality, Oz finds a strange allure in the depicted criminal life, hinting at the dark path his future would ultimately tread.
As the credits of the film roll, the heavens open up, unleashing a torrent of rain that finds Benny and Jack tragically trapped within the confines of the sewers, where they ultimately succumb to the relentless flood and meet their untimely end. This grim twist serves as the culmination of Oz's cold-hearted scheme to keep his mother all to himself.
Skipping ahead to the present day, Oz storms back to his abode to discover Victor sprawled unconscious on the floor, with Francis mysteriously absent. Just as Oz instructs Victor to locate their mother and follow the established hierarchy, Sal enters the apartment, clutching the golf club he had previously unearthed in Oz's residence. With a vendetta fueled by Sofia's orders—she holds Francis captive at the mansion—Sal swings the club with relentless fury, yet finds himself unable to commit the ultimate act, bound by Sofia's command.
Sofia, the new queen of Gotham, remains confident in her conviction that Oz will come for her, intent on their mutual destruction, along with Sal. Francis, oddly unfazed and defiant, peppers Sofia with glib remarks, highlighting the years Oz spent observing and absorbing from the sidelines during their rides together.
However, the conversation takes a dark turn when Sofia mentions Benny and Jack, striking a chord of vulnerability in Francis. Her past nightmare is rekindled, filling her with terror and rage, prompting her to strike Sofia in a fit of emotion. Despite her royal status, Sofia refrains from retaliation, acknowledging her own trials and the necessity of Francis in achieving her goals with Oz.
At this critical juncture, Julian arrives bearing grim tidings. A psychiatrist at Brookside Children's Home has interviewed Gia, potentially leading to police involvement. Sofia, desperate to silence her, assigns Julian the task of reasoning with Francis.
Oz, an elusive and cunning figure, provokes Sal in the subterranean warehouse, causing the latter to suffer a heart attack amidst their raid. Undeterred, Oz unleashes a hail of bullets upon Sal, seizing the ring as a macabre trophy to suggest his hand in Sal's demise.
With the demise of Sal and his cronies, Oswald proudly addresses his loyal underlings, warning them of an impending storm that demands their utmost preparedness. Sofia's trial is arduous, especially when she catches sight of Gia engaging in self-harm. In a hush, Sofia confides to Gia about the family's malice and their deserved fate. As she exits the room, Sofia battles to maintain composure, amidst an intense emotional turmoil. This poignant moment is abruptly interrupted by Oz's phone call to her, offering her the reigns of power in exchange for surrendering his mother.
Tempted by the deal, despite her awareness of its probable treachery, Sofia finds herself torn. She harbors a desire for Oz's demise as well. Sophisticatedly, she outmaneuvers him, exploiting his vulnerability by presenting a car laden with explosives. When Oz realizes he has mere seconds left to live, he deserts everyone and flees to the exact spot where Benny and Jack met their fate. The subsequent blast tears through the area, creating a colossal sinkhole that obliterates the entire operation, presumably wiping out everyone present.
Sofia has fully succumbed to her manic nature, daring Oz to confront her if he somehow manages to survive. And indeed, he does survive. Emerging from the debris, he discovers the Eastside in disarray. Unable to locate Vic, he is unfortunately felled by one of Sofia's henchmen.
