Episode Summary
Jiang Taohua witnesses Mu Wuyin commit murder and becomes entangled in his plot to kill Mu Wuxia, whom he mistakenly believes was the witness. This forces Jiang Taohua to navigate a dangerous path between Mu Wuyin's orders and her own survival. Meanwhile, the romantic tension between Mu Wuxia and Xiang Qingying escalates after a couple of close encounters. Shen Zaiye, secretly protecting Mu Wuxia, tries to uncover the forces targeting him while also sharing a moment of unexpected intimacy with Jiang Taohua.

Spoiler Alert
The Princess's Gambit: Episode 16 Spoilers
In this episode, the intricate web of relationships and conspiracies deepens, pulling everyone further into the palace's dangerous games.
The romance between Xiang Qingying and Mu Wuxia takes a tentative step forward. While watching a spectacular display of molten iron fireworks, Qingying boldly suggests they become a couple, inspired by a local belief that watching the display together ensures a long-lasting relationship. Mu Wuxia, ever proper, rejects her, stating that such things are for lovers. However, her words linger in his mind, leaving him flustered and confused. Later, the two are caught sneaking through the Library Pavilion and are forced to hide together in a large, water-filled lotus vat. Soaked and in close quarters, the tension is palpable. Qingying, refusing to be shy, leans in and teases him, asking if he now finds her beautiful and regrets his earlier refusal. A blushing Mu Wuxia quickly makes his escape, chiding her for being so forward.
Meanwhile, Jiang Taohua's life is in peril. Her poison flares up, but with Shen Zaiye keeping a close watch on her, she can't get the antidote. She and her maid, Qingtai, sneak to Yang Wanqing's Lanyi Pavilion, only to find it closed. Inside, they witness a shocking scene: Mu Wuyin murders a eunuch who questions his authority, which is backed by a token from Empress Lü. Blood from the murder splatters onto Taohua's face and clothes. The sound she makes alerts those inside, and she is forced to flee.
Mu Wuyin, aware that someone was listening, orders a search for anyone with bloodstains. He grows suspicious of Mu Wuxia, who had to change his wet clothes after the incident in the library. He also confronts Jiang Taohua about the blood on her sleeve. She narrowly avoids suspicion by claiming it's a symptom of her poison flaring up, a story Yang Wanqing accepts. Convinced that Mu Wuxia was the eavesdropper, Mu Wuyin gives Taohua a potent poison, ordering her to burn down the Library Pavilion to eliminate him. Wary of the plot, Taohua tests the poison herself first.
Unbeknownst to many, Shen Zaiye is secretly protecting Mu Wuxia. He intercepts and kills a spy tailing him, though the spy commits suicide before he can be interrogated. Puzzled as to why the apolitical Mu Wuxia is being targeted, Shen Zaiye maintains his public facade of animosity towards him. To draw out the masterminds, he orders his man, Wang Xi, to pull back all his hidden guards, hoping to lure the bigger fish into the open.
Later, a troubled Jiang Taohua finds Shen Zaiye drinking alone and joins him. She shares a rare, vulnerable memory of her mother showing her peach blossoms in the snow at the Beiyuan, expressing a wish to return one day. Noticing Shen Zaiye is injured, she tenderly applies ointment for him. This intimate moment is observed by Qingtai, who arrives with food but decides not to interrupt, sharing the meal with Shen Zaiye's guard, Zhan Lu, instead.
The conspirators, Mu Wuyin and Yang Wanqing, realize Shen Zaiye has discovered and eliminated their spy. Acknowledging that Jiang Taohua is their only remaining asset close to Shen Zaiye, they resolve that their plan for the following day must proceed without a single error.