Episode Summary

In this episode, tensions between Chu Guihong and Li Shiliu lead to a construction competition, while Song Yimeng grapples with her knowledge of being in a scripted world, a secret she keeps from a confused Li Shiliu. Nan Heng desperately tries to clear his name in Song Yimeng's eyes, but his intensity only frightens her. The deep-seated animosity between Nan Heng and Chu Guihong is finally explained through the tragic murder of Chu Yurong, revealing years of misunderstanding and suffering. A moment of crisis forces Chu Guihong to reconsider his opinion of Li Shiliu, hinting at a future change in their dynamic.

Spoiler Alert

"A Dream within a Dream" Episode 12: Spoilers

The tension escalates as Chu Guihong confronts Li Shiliu, convinced that his mysterious identity is a front for a deliberate scheme to meddle in court politics. He sternly warns Li Shiliu to keep Song Yimeng out of it. Li Shiliu, however, claims he has no interest in such matters and only wants to finish repairing the citizens' houses. Unconvinced, Chu Guihong accuses him of getting close to Song Yimeng as a pretext, suggesting this was his motive for agreeing to assassinate Nan Heng. This leads to a challenge: Li Shiliu bets Chu Guihong on who can complete the repairs faster and better. Although reluctant, Chu Guihong agrees, partly because he needs the help of Can Jiang Yue and fears repercussions from Nan Heng over any delays.

Meanwhile, Fugui attempts a clumsy scheme to learn about "main" and "supporting characters" from Song Yimeng, hoping to impress Nan Heng. When his initial trick with a fake dagger fails, he resorts to loudly insulting Nan Heng, only to be overheard by the prince himself. A terrified Fugui is shielded by Song Yimeng, who warns him to watch his words.

The plot thickens when Song Yimeng, seeing Li Shiliu looking pensive after a strength competition between the Xuanjia and Qianyu armies, assumes he's been bullied by Chu Guihong. In a bizarre gesture, she offers him her "protagonist's halo." Li Shiliu, who has repeatedly heard her mention these strange terms, is confused but eager to understand so he can help her against Nan Heng. Song Yimeng, however, tearfully asks to keep her secret, afraid of losing him. Her sense of being trapped in a script is reinforced when she learns that local children are all named "Passerby A, B, and C."This prompts her friend Zhixia to suggest she break her engagement with Chu Guihong and marry the more impressive Li Shiliu.

Nan Heng, for his part, is tormented by Song Yimeng's perception of him as a villain. He confronts her directly, demanding to know her true opinion and questioning her about the "main and supporting characters" concept he can't find in any book. Frightened by his intensity, Song Yimeng pushes him away and tries to explain the idea of a "top-tier" character in a script, which only leaves him more bewildered and hurt. He pleads with her to see him for who he is, not as the villain of rumors.

The episode also reveals a dark and tragic backstory. Shangguan He discovers that Nan Heng and Chu Guihong were once close childhood friends. Their bond was shattered by the murder of Chu Yurong. Despite Nan Heng's claims of innocence, a grief-stricken Chu Guihong has held him responsible ever since, opposing him at every turn. It is revealed that the Emperor, influenced by Gao Chang, has always been cruel to Nan Heng. Chu Yurong was the only one who showed him genuine kindness. On their way back from a hunt, she was brutally stabbed to death in the carriage they shared. This event led the Emperor to publicly humiliate Nan Heng before imprisoning him in the Cold Palace, where he was abused and isolated, with no one believing his innocence.

In a moment of unexpected alliance, Rong Hua's attempt to sabotage the house repairs goes awry, causing a rope to snap near Li Shiliu. When Chu Guihong arrives to place blame, Li Shiliu saves him from the falling debris. This act of heroism forces Chu Guihong to see Li Shiliu in a new light, and he later gives him medicine for his injuries, marking a potential shift in their hostile relationship.