The GCPD pull up to Crane’s house and find it empty. Jim can see that more of the toxin was produced. Outside, one of the gang members is tied up like a scarecrow, and he warns Jim and Harvey that the villain is coming.
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Bruce is locked up at the station and Alfred comes to get him out. Bruce tells Jim that he fell into a robbery-in-progress and that’s why he was in the situation he was in. Jim lets him out go the cell and sends him home with Alfred. The gangster is nearby, screaming in terror.
At Arkham Asylum, the warden is frantically burning the papers that incriminated him. Scarecrow arrives and starts to threaten him. Soon, Scarecrow sprays the warden with his toxin.
As Bruce is leaving the GCPD, Lucius talks about the dangers Bruce is facing and wishes him on his way.
At Arkham, the toxin is making the warden see a bunch of clowns. The warden then walks through the asylum, shooting guards because he sees them as the clowns. Crane then starts unleashing the patients that are chained to their beds, spraying them with his toxin and calling them his “army.”
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Penguin shows up at the GCPD with the reporters in-tow. Penguin wants to find Crane and Jim says that he doesn’t know where to find him. Harvey then starts making fun of Penguin and the villain gets angry, calling out the GCPD. Jim stands up to Penguin, saying that he will continue to arrest people with the crime licenses. Penguin makes a bet with Jim. If he can’t find Crane within 24 hours, he has to give the GCPD up to Penguin.
Tabitha and Selina both show up to an abandoned building, where they were invited by a random note. Barbara is inside. She tells the girls that she has come back and that she has an opportunity for them. She apologizes to Tabitha and shows her friends a hidden room full of weapons of all kinds. Since every criminal is going to get a license for crime, they’re going to sell weapons to them. Tabitha leaves, not wanting to work with Barbara, but Selina is intrigued.
At Wayne Manor, Bruce is getting ready to go back out but Alfred tells him that he’s not ready, but that he’s not going to stop him. Of course, Bruce leaves.
Harvey tells Jim that Arkham is under attack from its own inmates and that the guards have all left. None of the officers will go with Jim because they can’t make a difference in the city. Harvey also refuses to go because he can’t lose the loyalty of the others.
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Jim arrives at Arkham by himself and a couple of patients are creeping around. The Warden, whose face is painted like a clown, attacks Jim. Scarecrow is watching Jim on the security cameras and knows that he’s the man that shot his father. Crane unleashes all of the patients and Jim scares them off.
Penguin arrives to Barbara’s new place and she shows him all of the new weapons. Zsasz and Ivy accompany Penguin as they ask Barbara what she’s up to. Penguin says that she needed to run this by him, then he snaps at Ivy when she tries to help talk to Barbara. Penguin then tells Barbara that he will keep a close eye on them, ready to kill them if they try and overthrow him. Penguin asks who paid for the new business and Barbara stays quiet.
At Arkham, Scarecrow traps Jim and reveals that he’s Jonathan Crane. He sprays Jim with the toxin.
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Under the influence of the poison, Jim hears Lee screaming down the hall. As he goes into the bathroom he sees Lee in a bathtub full of blood, having slit her own wrists. She tells him that it’s his fault that she killed herself before sinking down into the tub. Scarecrow appears to tell Jim that he can join Lee, showing her that he really loves her. Jim snaps out of it and he’s in an empty room by himself.
He takes off after Crane, they get in a fight, and he tells Scarecrow that he overcame his fear and that’s how he escaped the toxin. Jim tries to help Jonathan but he’s shut down. Jonathan runs out of the room.
Bruce looks down on the streets of Gotham and sees a group of criminals breaking in somewhere. He goes inside to try and stop them but he’s ambushed once he walks through the door. Using the different tools and things laying all around the warehouse, Bruce escapes out the window. One of the men stops him but he’s knocked out by Alfred.
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Selina is trying to convince Tabitha to join Barbara because she wants power so she can be taken seriously. Ivy shows up and tells the duo that she wants to be part of the team as well but she’s turned down. Tabitha finally agrees to meet with Barbara again.
At Arkham, the patients under control of the toxin attack Jim, but he sets off the sprinklers and it gets the toxin off their skin. Jim turns to see Crane has vanished.
Bruce and Alfred are arguing when there is a knock on the door. Lucius Fox has shown up to give Bruce a gift. He has a bulletproofย uniform for Bruce to wear while he’s out. The black ensemble comes with a mask and a radio communicator so that he can talk with Alfred.
Tabitha and Selina go to talk to Barbara. Tabitha wants to cut off Barbara’s hand in exchange for her trust. Barbara allows it and Tabitha reveals that it was just a test. The trio are back together, for now.
Commercial Break
Jim returns to the GCPD to see Penguin and the reporters confronting him. Penguin offers the other officers the chance to come and work for him for triple the wages that they’re paid by Gotham. Harvey calms Jim down and they go for a drink.
Ivy goes back to the man she stole potions and poisons from. He has ancient potions that are supposed to make her stronger. She takes three of them and her face starts to morph.
Bruce tries on his new outfit, and he’s looking even more like Batman than before.
The end.
Commercial Break
Jim returns to the GCPD to see Penguin and the reporters confronting him. Penguin offers the other officers the chance to come and work for him for triple the wages that they’re paid by Gotham. Harvey calms Jim down and they go for a drink.
Ivy goes back to the man she stole potions and poisons from. He has ancient potions that are supposed to make her stronger. She takes three of them and her face starts to morph.
Bruce tries on his new outfit, and he’s looking even more like Batman than before.
The end.