Episode Summary
A flashback reveals Lin Qiangfeng's past as an undercover agent who survived a cartel massacre. In the present, the investigation into Xu Desheng's murder points to another survivor of that same massacre, Lao Gui, after Xu's grandmother provides a crucial tape recording. As the team tracks Lao Gui through his lover, a parallel story follows the troubled Lu family, whose patriarch, Lu Shaohua, possesses a hidden bag of meth linked to the case.

Spoiler Alert
The Narcotic Operation: Episode 3 Spoilers
The episode opens with a brutal flashback to four years ago in Wanbei, a region abroad. Lin Qiangfeng, working undercover as "Guge," had infiltrated a drug cartel run by Commander Yun. Suspecting a mole in his organization, Yun ordered his enforcer, Ya Ge, to eliminate a group of his own men. During the ensuing chaos, Guge was shot. The local police chief, bribed by Ya Ge, arrived on the scene and instructed an officer named Mindan to clean up. While looting the bodies, Mindan discovered that Guge was still barely alive.
In the present day, Lin Qiangfeng is welcomed back with a feast cooked by the talented Ban Dehai, joined by Yang Wei and Feng Hao. As they drink, they analyze the murder of Xu Desheng. The conversation is briefly interrupted when Lin chokes on a fishbone. After recovering, Ban Dehai suggests a key investigative step: cloning Xu Desheng's pager to retrieve his messages.
Meanwhile, another dinner is taking place. Lu Shaohua is hosting Qiu Laibao and others whose goods were seized by customs, seeking his help. Lu Shaohua is forced to leave abruptly after a call from his wife, rushing to the hospital. He arrives home to a chaotic scene: his son, Lu Tianci, got drunk and slapped his fiancée, Huang Peiling. Her father, Chief Huang, arrives in a rage and insists on taking his daughter home, threatening to call off the engagement despite Huang Peiling's protests.
The situation worsens for Lu Shaohua when he begs Chief Huang to help another family member, Lu Shaodong. Chief Huang, facing his own troubles, demands a payment of 500,000, leaving Lu Shaohua desperate. This pressure triggers a memory for Lu Shaohua: he recalls finding a hidden bag of methamphetamine inside a liquor bottle at Xu Desheng's home.
The investigation gains momentum when Wang Hui brings Xu Desheng's grandmother to meet Lin Qiangfeng. The grieving grandmother hands over what she believes is crucial evidence: a cassette tape. As Lin listens to the tape, he discovers a recorded conversation between Xu Desheng and a man known as "Lao Gui" (Old Ghost).
It's revealed that Lao Gui is a survivor of the Wanbei massacre from four years ago. He has secretly smuggled himself into the city of Xigang. While making a call, he sees a news report about a police crackdown on drug traffickers and quickly flees.
By combining the evidence from the tape with six months of Xu Desheng's pager records, Yang Wei deduces that Lao Gui was Xu Desheng's primary contact for drug trafficking, using imported liquor as a cover.
Injured and on the run, Lao Gui seeks refuge with his lover, Qingqing. He becomes enraged when he finds photos of her with another man. He had spent a lot of money on her after they met through their shared drug habit and feels betrayed. He forces the terrified Qingqing to bandage his wounds. The investigators, Sang Bo and Miao Lun, manage to trace a message sent from Lao Gui to Xu Desheng, leading them directly to Qingqing's phone, closing in on their target.