Episode 8 of The Sandman Season 2 kicks off with a revelation from Nuala: she intends to assemble a formidable army of fae to aid Morpheus in his endeavors. Though reluctant to displease their regal leader, Cluracan lends a helping hand by restoring Nuala's allure. Queen Titania, in her usual manipulative guise, remains uninterested in Nuala's quest. Nonetheless, her covetous eyes are fixed on the necklace Morpheus bestowed upon Nuala.
Morpheus, having come to terms with his fate, seeks out Despair. She, overwhelmed with remorse, acknowledges her despair upon realizing his plight. She confesses her fondness for Orpheus and her companionship with him. Morpheus, apologetic for his absence during her dark hours, expresses hope that Daniel will prove to be a more supportive sibling to her.
Just then, the scene shifts to a grief-stricken Lyta, who blames Morpheus for Daniel's disappearance. Puck and Loki enter the narrative as detectives probing the case. Puck maliciously contaminates the crime scene with sand—Morpheus' emblem—fanning the flames of suspicion.
Determined to search for Daniel, Morpheus is reminded by Lucienne that an Endless remains unharmed within their realm. She posits that the kidnapping is a setup aimed at ensnaring Morpheus and persuades him to enlist a mortal agent for the rescue.
He turns to Johanna, offering her Lady Johanna's diary in exchange for her assistance in retrieving Daniel. Johanna accepts the deal, her curiosity piqued when the diary unveils Lady Johanna's romantic entanglement with Orpheus.
Meanwhile, at Unity's abode, Lyta receives a visit from the Fates. They vow to lend their aid and subtly suggest that she has already crossed paths with Daniel's abductors.
Turbulence disrupts the serene idyll as Loki harbors a deep aversion to children, clashing sharply with Puck's instant camaraderie with Daniel. The mischievous fae befriends the toddler, a bond that irritates Loki to no end. Puck's sudden shift in sentiment only exacerbates the tension, with Loki bluntly reminding him that Daniel serves as leverage in their quest to vanquish Morpheus. Yet, Puck's heart seems to have undergone a transformation.
As dawn breaks, Johanna embarks on her investigation, accompanied by an uninvited Morpheus, who insists that her safety is jeopardized by the presence of two deceitful entities on Earth. They arrive at Unity's, only to discover Alex Burgess in a perpetual slumber. Paul's plea for liberty falls on deaf ears as Morpheus stands firm. Later, a chance encounter with Lyta sparks a fiery confrontation; she, now convinced of his sincerity, is nonetheless incensed that he has placed her child in harm's way. She vows to end his life should any harm befall Daniel and summarily ejects him.
Johanna urges Morpheus to reconcile with his adversaries, but he stubbornly refuses. She perceives his yearning for punishment, despite Orpheus's forgiveness. Refusing to aid in Daniel's search unless Morpheus returns to the Dreaming, Johanna realizes his self-imposed penalty.
Elsewhere, Puck, clutching Daniel, flees into the night. As he prepares to elude capture, he declares to Loki that the child is more than a mere pawn. Meanwhile, Morpheus seeks out Hob at his late wife's graveside, intending to bid farewell, acknowledging that this could be their final parting. He confesses that his mistakes have sealed his fate and apologizes for condemning Hob to eternal suffering. Hob, like Johanna, urges him to seek forgiveness, whispering that redemption might still be within reach.
Convinced by their words, Morpheus grants Alex his freedom. The young boy, filled with contrition, extends his hand to Morpheus, who accepts. In the waking world, Alex awakens from his endless slumber, rejoining Paul in a heartwarming reunion.
Just as Puck prepares to restore Daniel to Lyta, Morpheus intercepts him. Puck strikes a deal: he will surrender the child if Morpheus absolves Loki of his debt. Morpheus, taken aback, learns that Puck harbors affection for Loki, despite their tumultuous history.
At that very moment, Loki unveiled his true identity, having cleverly concealed himself beneath the guise of Morpheus. His amusement was evident as he responded to Puck's bold proclamation, reassuring the fae that Daniel was destined for royalty. Upon returning to their abode, Loki feigned mending fences with Puck, slipping a sedative into his system. With Puck incapacitated, Loki proceeded to incinerate Daniel, a cold cruelty etched across his visage. He then relayed the grim news to Lyta, informing her that the young boy had perished.
Within the realm of the Dreaming, Morpheus issued a request for Corinthian's skull, a relic brimming with potential and peril. Despite Lucienne and Matthew's misgivings, their faces etched with worry over the havoc a reincarnated Corinthian could wreak, Morpheus forged ahead. With confidence, he crafted a new version of the fallen dream-demon, reassuring his concerned companions that this incarnation, Corinthian 2.0, was an improved model. And so, with a flick of his wrist, he awakened the newly minted entity, the second coming of Corinthian.
