Episode 2 of The Sandman Season 2 kicks off with Morpheus descending upon Hell, only to encounter an eerie silence that pervades the realm. Greeted by a somber and disheartened Lucifer, he is reassured that no deceitful schemes lurk in the shadows. Lucifer even vows that, within the confines of Hell, Morpheus is safe from harm. Intrigued, Morpheus accompanies Lucifer as the fallen angel secures all the gates and then proceeds to have their wings removed. Once free from the bonds of Hell, Lucifer hands the key to Morpheus, who, too late, comprehends the archdemon's true intentions.
Lucifer, never truly desiring to reign over Hell, has been inspired by Dream's frequent absences from his own domain and has thus abdicated his throne. Consequently, all the inhabitants of Hell, including Nada, have deserted the place, rendering her whereabouts a mystery. Moreover, Morpheus's burdens have multiplied, as he realizes the perilous implications of the key falling into the wrong hands – those of a reckless individual.
Panicked, Morpheus rushes back to the Dreaming, mindful of the fact that, with Lucifer gone, every ambitious entity yearning to dominate Hell is now after the key. Desperate, he attempts to offload it onto Death, so he can concentrate on locating Nada. However, she declines, reminding him of his paramount duty as the new overlord of Hell: to reclaim all the wandering demons and souls before they unleash chaos upon the world.
As if on cue, a host of aspirants arrive, clamoring for the key. In a bid to resolve the situation, Morpheus decides to host a grand banquet and allow the attendees to vie for the rulership of Hell. Among the notable guests are Thor, Odin, Loki, Kilderkin, Chaos, the Japanese sea deity Susano-O-No-Mikoto, and Azazel.
Next to arrive are the fae ambassadors, Cluracan and Nuala. Every seven years, nine faeries are sacrificed to Hell as a tribute. They implore Morpheus to remain as the ruler of this desolate realm. Nuala is visibly upset as Morpheus continues with his diplomatic reassurances, promising safety and stability that seem hollow in the face of their plight. As they are escorted to the banquet, the inhabitants of the Dreaming comply with every whim and desire of the guests, striving to maintain a semblance of order amidst the chaos.
From the concealed recesses of a secret gallery, Morpheus watches with an eagle eye as each guest strips away their masks, revealing their true natures. Lucienne's initial choice falls upon Odin, whose impulsiveness knows no bounds, even bringing along his imprisoned son, Loki, a notorious trickster. As anticipated, Odin harbors designs on using Loki to ensnare Morpheus and wrest the key from his grasp. Loki, however, protests that his enchantments hold no sway within Dream's own domain. Meanwhile, most of the attendees consider bribery their most promising avenue to Morpheus's favor.
Lucienne's subsequent selection is Azazel, whose intimate knowledge of Hell is unparalleled. The scene shifts to Azazel and his companions indulging in heinous pleasures. Thor behaves abominably towards Merkin, a female demon, who swiftly sets him straight. Nuala rushes to her aid as Thor stirs up a commotion. Morpheus intervenes, putting an end to the fray.
More arrivals grace the scene, the angels Remiel and Duma, whose sole intention is to observe and relay their findings back to God. Morpheus feels a pang of anxiety, yet his chef, Taramis, views this as a sign of his advantageous position. She deduces that if God knew the solution, he would have already seized the key. Everyone present is acutely aware that Morpheus possesses the wisdom to make the correct decision.
Bribes are soon proffered, with Morpheus firmly declining Kilderkin's dream essence. In response, Chaos looms menacingly. Susano-O-No-Mikoto delivers a heartfelt plea, followed by Odin, who offers to uncover the missing Endless in exchange for the key. He unmasks his desperation, hoping to stave off Ragnarok by relocating giants and dark elves to Hell.
After a harrowing spectacle orchestrated by Cain and Abel, Morpheus brings the banquet to a close and escorts everyone to their quarters. He confides in Lucienne, revealing that he has narrowed down his choices to two candidates.
As The Sandman Season 2 Episode 2 draws to a close, Azazel makes an unwelcome appearance in Morpheus's throne room. He offers Choronzon as a grim gesture of retaliation for daring to challenge Morpheus in Season 1. When Morpheus turns down this gift, Azazel reveals that he holds Nada captive. With a brutal stroke, he slays Choronzon and threatens to mete out the same fate to Nada unless he obtains the key.
