Episode Summary
Feng Lixue is accused of colluding with demons. Mo Xiao defends her while investigating a possible inside threat connected to the Shuluo Demon Stone. A lantern festival is held for prayers, but demonic forces attack, and Feng Lixue fights to prove her innocence.

Spoiler Alert
So, the episode kicks off with Yueyao straight-up accusing Feng Lixue in front of all the Immortal Sect leaders of sabotaging the exorcism, which led to a bunch of disciples biting the dust. Xie Lingyun and Murong Jing jump to Feng Lixue's defense, and even Mo Xiao chimes in, explaining that Feng Lixue did what she could, but some folks just weren't strong enough. But the sect leaders? They're not buying it. They think Feng Lixue volunteered to help with the exorcism with ulterior motives. Mo Xiao ain't having it, though. He publicly claps back, reminding everyone that Feng Lixue's arrival was no secret, and promises to get to the bottom of things.
Back at his place, Mo Xiao locks himself in and summons Hualang to get the lowdown on what went down the previous day. Turns out Hong Yue and the gang were sniffing around Guiyin Alley for Lingxiang, and Poyun was the one who sprung Feng Lixue. Mo Xiao's worried sick about Feng Lixue, and just then, Murong Ce shows up to confess that he screwed up on security, letting some evil cult members slip through. He feels guilty because Mo Xiao didn't expose his mistake in front of everyone.
Mo Xiao, ever the strategist, figures Murong Ce is usually on point with security, so someone had to have an access pass to get in. Since Feng Lixue was escorted into the formation by Mo Xiao himself, it's gotta be an inside job. He tasks Murong Ce with investigating Lingxiang and checking for any Shushan disciples involved. Murong Ce is super grateful for Mo Xiao's trust. Meanwhile, lurking in the mountains, Lu Jianchuan is practicing some soul-crossing spell, sweating bullets that Mo Xiao will find out about his missing access pass.
Yuan Beichen corners Mo Xiao, asking if he already has a plan since he promised answers to everyone. Mo Xiao suspects a mole, pointing out that Feng Lixue literally took a hit of demonic energy to save everyone. He's convinced she's not the culprit and thinks someone's pulling the strings, aiming for the Shuluo Demon Stone hidden somewhere in Fengdu City. Yuan Beichen fears a looming disaster and Mo Xiao suggests a prayer lantern festival under the Immortal Sects' banner. Yuan Beichen agrees but warns Mo Xiao to stay sharp and not let Feng Lixue cloud his judgment.
Mo Xiao then heads back to the Demon Sect and orders everyone to leave Feng Lixue alone, no matter what. Zi Ying is reluctant but has to pass on the message.
Feng Lixue is recovering, and Cang Cang tells her that everyone is praising her for saving them. Feng Lixue wants to see for herself, but Cang Cang tries to stop her. She goes anyway, only to find out that the public actually hates her, blaming her for colluding with the Demon Sect and bringing disaster to Fengdu City, just like her father, Feng Xingtian, before her. Cang Cang drags her back inside.
Back inside, Feng Lixue confronts Gu Bai and Poyun, upset that everyone thinks she's in league with the Demon Sect. She's worried that Shushan thinks the same. Poyun says Shushan hasn't made a move yet, but Feng Lixue is heartbroken, believing she's lost their trust forever.
Poyun knows about Mo Xiao's upcoming prayer event but keeps it from Feng Lixue, not wanting her to get her hopes up just to be disappointed. He's just waiting for things to turn around.
Xuyuan Yunchao unearths some intel and plans to infuse the prayer lanterns with demonic energy, hoping to locate his brother. Wu Shuang is thrilled and sends Xuyuan Yunchao to make it happen.
Murong Ce has been tailing Lingxiang and spots a mysterious figure sneaking out in the middle of the night. He gives chase, and during the fight, the figure's mask gets ripped off. Murong Ce demands to know her mission, but she stays mum and escapes. He finds a bracelet on the ground, which reminds him of a little girl who was taken away to find relatives, but now she's back as a shadow assassin.
Feng Lixue has purged her demonic powers and healed overnight, leaving no trace of demonic energy. She realizes that no one will believe she's not involved with the demonic poison. Mo Xiao hears that Feng Lixue is okay and has a moment of doubt, but then reaffirms his belief that she wouldn't betray them.
Murong Ce reports his findings to Mo Xiao, but the target already sensed they were being watched and fled. They used a tricky escape technique, making it hard to track them. Murong Jing can't figure out what Lingxiang's master wants, but Mo Xiao thinks it all leads back to the lantern festival, where they'll find their answers.
Mo Xiao sends Murong Ce to Yishan to retrieve the Spirit Guard Armor. If anyone comes for the Shuluo Demon Stone, there will be demonic energy, and the armor will protect the city's residents. Mo Xiao tasks Murong Ce with protecting the people, leaving the rest to him.
Feng Lixue and Cang Cang go to see the lanterns, but no one wants to sell them one because of Feng Lixue. Cang Cang runs off crying, and bumps into Mo Xiao. Mo Xiao knows Cang Cang wanted to see the lanterns, so he arranges a lotus lantern for them. Cang Cang brings Feng Lixue to see the lanterns, and Feng Lixue realizes it was Mo Xiao's doing and gets emotional.
During the lantern festival, Xuyuan Yunchao shows up. As the lanterns float into the sky, demonic spirits from the Seven Caves and Nine Abyss attack, sending the crowd into a panic. Murong Ce deploys the Spirit Guard Armor, protecting the city and calming the people. Mo Xiao flies into action, fighting the demons. Feng Lixue arrives on the scene, explaining to Mo Xiao that she's not in league with the Demon Sect and this is her chance to prove it. She unleashes her Phoenix Feather Chain and jumps into the fray. Chong Guang senses something's up and orders Chang Ming to check it out, warning them not to harm Feng Lixue.
Despite the orders to leave Feng Lixue alone, the demons attack her anyway, desperate to get their hands on the Shuluo Demon Stone. Feng Lixue is weakening, but Mo Xiao breaks free and catches her as she falls. The demonic energy dissipates, and Murong Ce retracts the Spirit Guard Armor.
Will Feng Lixue ever clear her name? What's the deal with Lingxiang and her mysterious master? And who's really after the Shuluo Demon Stone? Stay tuned for the next episode!