The Sirens attack members of Cobblepot's inner-circle, and Sofia Falcone has accompanied them. They ask Penguin's lawyer where they can find him. Meanwhile, Jim and some of the GCPD approach an abandoned building to find one of Pyg's latest victims.
Back at Penguin's, the Sirens talk about their strategy going forward and Sofia is confident in her abilities as a Falcone. Sofia gets a phone call and says she will "be right there."
Jim gets back to HQ and he gets word about Penguin and Sofia's war that broke out under the bridge the night before. He tells the other cops that Pyg has a new face that he got with the help of a black market surgeon.
Sofia takes the Sirens back to her father's house and he has returned to Gotham. He chastises her because he told her not to come to the city, that she wasn't ready to run things yet. He insists that he doesn't want control of Gotham anymore but she argues because she does. Mr. Falcone then hits Sofia and calls her out for sleeping with Jim, telling her that she has no honor. Penguin then appears out of the shadows and it's clear that he's working with Falcone.
Alfred arrives to Wayne Manor where the police tell him that the neighbors called in a noise complaint. Bruce is passed out on the bed next to multiple women. Alfred wakes him up with a bucket of cold water.
Carmine and Jim talk about Penguin and the former says that he made a deal with Penguin to take Sofia away from Gotham. He threatens Jim, telling him that there is danger coming his way and that he should be prepared. Sofia comes outside, followed by her bags, and she kisses Jim goodbye.
Right before getting in the car, Sofia walks over to the rose bushes to get a flower. A dark van slowly pulls up to the house, opening its doors to reveal a man with a machine gun who begins firing at everyone on the scene. Sofia takes a bullet but seems alright when Jim gets to her. Carmine, however, is dead.
THREE DAYS LATER: Alfred watches a news story on TV about the death of Carmine Falcone. Penguin watches the same story from his headquarters and promises Zsasz that he's not the one who ordered the hit on Falcone, even though that's what most of the underworld believes.
At the funeral, Sofia enters on a wheelchair and confronts Jim, saying that it's Penguin who killed her father. Jim hasn't done anything about it because he doesn't have any evidence. Zsasz approaches Carmine's casket, bidding his former boss goodbye, and then leaves without saying anything to Penguin. Harvey comes to the church and sits behind Jim, trying to convince him to arrest Penguin. As they talk about the next move, Harvey tells Jim that he needs to finish what he started, and get Penguin to start a war so that Jim can arrest him. Penguin walks up to the casket and says goodbye before trying to confront Sofia. Jim breaks it up, wheels Sofia away, telling her that he's going to finish what he started.
Penguin marches into the GCPD HQ and begins asking for Jim. He wants to see Sofia but Jim stands his ground, he's not going to let Penguin decide who lives and dies in Gotham City. Since Jim won't budge, Peguin offers a reward to the other cops, saying that he'll pay them if they reveal Sofia. All of the cops side with Jim, taking Penguin and tossing him back outside. Jim then gives an emotional speech about how much things have changed in the past few years, saying that the actions of the other police have proved that the city has become a better place. The entire unit then suits up for war against Penguin.
Police and gangsters engage in multiple shootouts around the city. One of Penguin's men has the Sirens tied up, but they manage to escape while the lackeys are distracted by the police.
Jim and Sofia talk in Jim's office about how to beat Penguin and it's clear that she's still trying to run things. She tells Jim about Oswald blowing up the car with Martin in it. She then says that someone who cared very much about her father recently called her.
Penguin is freaking out in his club, talking to Zsasz about losing the war. Jim then arrives with a few officers, trying to arrest Penguin for the murder of Martin. Penguin begins laughing because he knows that Martin is alive. He tells Jim that he faked Martin's death to trick Sofia. He asks Zsasz to tell Jim where he took Martin, but Zsasz goes against Penguin, telling everyone that he watched Penguin blow Martin up. The police arrest Oswald and take him downtown, where Jim is met with applause from the rest of the GCPD.
Zsasz and Sofia are talking at her house and he pledges his allegiance to her because she's a Falcone. The camera turns to reveal that the Sirens are also there, and Sofia tells them to smile because, "It's a new day."
The Sirens get their club back. Sofia gave them Penguin's space for helping her take him down.
At Wayne Manor, Bruce continues to treat Alfred poorly. Alfred tells Bruce that he planned a trip to the Alps for the two of them so that he can clear his head a little bit. Bruce says that he doesn't want to change because, over the past couple of weeks, he hasn't thought about his parents or killed Ra's al Ghul at all. He wants to keep living the way that he is. Bruce tries to leave but Alfred stops him and the two get into a fight. After Alfred lands a powerful punch, Bruce runs out of the room and Alfred doesn't know what he has done.
Nygma screams into the mirror because his inner-Riddler is taunting him. Grundy comes into the room and he's totally confused, but perks up when he hears the Solomon Grundy song playing on a record player downstairs. As he examines it, a can of knockout gas rolls over to him and he passes out. Tabitha enters the room and takes off her gas mask, looking down on the sleeping body of her former lover.
Grundy is taken to another location where Tabitha ties him up and tries to get him to remember who he was. She tells him all about what Nygma did to them a long time ago. She shows Grundy the scars on her hand and kisses him, but he doesn't remember her. Since nothing else is working, Tabitha grabs a heavy bar and beats Grundy's head, because that's how he remembered the first time when they were fighting.
Jim shows up to Sofia's and he tries to stop her from taking over the Gotham underworld now that Penguin is in custody. Pyg is waiting in the corner and it's revealed that he's always just been Lazlo and Sofia hired him to become the Pyg and take down Penguin. She also hired the shooter to kill her father and it was Pyg that shot her to make it seem like she was a victim. Sofia then shoots Pyg and tells Jim that he needs to stay in place as captain so that she can control the GCPD. She then blackmails him, saying that she will tell everyone about the ploy that got all of those officers killed unless he stays in his place as captain. He accepts by calling the GCPD and telling them he shot and killed the Pyg.
Bruce returns to Wayne Manor and Alfred tries to apologize, telling Bruce that he an live however he wants. Bruce reveals that he had a lawyer remove Alfred as his legal guardians, then fires his beloved butler.
Tabitha continues to beat Grundy, trying to get him to remember who he used to be. She kisses him once more, saying that she tried, and heads for the door.
While Bruce is out partying, Alfred packs his bags and turns the lights out in Wayne Manor. With one long look around the empty house, he leaves for good.
Harvey comes to the station and tells Jim that he's done a good job and that he can't let the other cops in the GCPD down. Harvey came to turn in his badge and gun.
Grundy wakes up, still tied to the chair. He sees his reflection and realizes that he's still Butch, wondering what happened to him.
Penguin is going crazy in his cell in Arkham when he starts hearing someone talk to him. It's Jerome, telling him they can help each other, that he's a "very resourceful fellow."
'What do you say, pal? I'll be your best friend? Give me a smile!"