Bruce and Alfred are going down the hidden stairs and discover a locked door. Bruce tries several codes on the keypad but none of his attempts are successful.
One month later, we see that Jim and Leslie are still together, Bullock is working as a bartender, Oswald has become “the King” of Gotham while Barbara is joining a young Jerome at Arkham Asylum. Later at night, we see a man give which appears to be some kind of poison of hallucination. The next day, the man claims to be “Zaardon” and starts causing trouble while Jim is on traffic patrol. Jim quickly apprehends him. He is being processed at GCPD and claims he drank something called dragon’s blood. “A war has begun and the master will unleash hell” he promises to Jim.
We see that Edward seems to still be conflicted over what he has done. We see Edward talking to himself in the mirror, this is only an ominous sign of things to come. Jim is being yelled at by Commissioner Loeb about his behavior and argues with Captain Essen and ultimately takes Jim’s badge. Jim promises the Commissioner that he will break him. We see Zaardon passed out in the holding cell and he burps and we see a blue substance come out of his mouth.
Jim and Leslie are talking about why Jim quit. Jim says he doesn’t have any legal moves left to make. He tells her that all he knows is that he is meant to be a cop. Barbara meets Jerome in prison. They are both in for killing their parents. Jerome tells Barbara that his friend runs the place and can get her anything she wants. Barbara says that she wants a telephone.
Oswald has taken Falcone’s position and are discussing a minor business dispute when Jim arrives. He notices that Selina is still working with Oswald. Jim wants a favor from Oswald, that being Commissioner Loeb is fired and Jim gets his job back. In return, Oswald wants Jim to collect a debt for him to prove their “friendship” is genuine. Jim then goes to Bullock’s bar and is over everything. Bullock tells him how happy he is now that he is off the force. He knows Jim is a good guy.
Jim visits Wayne Manor to apologize to Bruce for not being able to keep his promise since he was fired. He tells Bruce the only way he could would be to collect a debt for Oswald. Bruce gives Jim his blessing, saying sometimes doing the right thing means doing the ugly thing. Bruce then goes back down the stairs and when he can't get the right code he smashes the keypad.
Barbara is talking with Jerome’s friend at Arkham about getting this telephone. He smiles at her and asks how bad she wants this phone. Jim goes to the nightclub to talk with Barker. He tells Barker that Falcone is retired and Oswald is now in charge. They argue for a minute then Jim knocks out his men and takes Oswald’s money. Jim flees the nightclub and Barker attempts to shoot him but Jim gets off two rounds, killing Barker.
Bruce tells Alfred that he is going to make a bomb to blow open the door. Alfred seems reluctant to help, but agrees to do so. Jim brings Oswald his money and Oswald promises to hold up his end of the deal. Jim is having issues over what he did and Leslie can tell. Jim gets a call from Barbara, who lies and claims that Leslie is crazy and tried to attack her. She then calls Leslie and tells her she hopes she dies. Leslie wants to leave Gotham, but Jim refuses by saying he did a “bad thing.”
Commissioner Loeb wakes up to noises in his kitchen and finds Victor and Oswald waiting for him. They threaten Loeb and ultimately force him to resign as commissioner. We then see a press conference where they are making it official. The mayor is unable to attend but has sent his good friend, Theo Galavan. This is the man that was giving Zaardon the dragon’s blood.
We see Zaardon being thrown into Arkham and makes threats to the prisoners including Barbara and Jerome, to which are ignored. He passes out and the dragon’s blood substance comes out of his mouth and knocks the prisoners unconscious. We then see a woman arrive and kill the guards and break out the prisoners.
Jim has officially been reinstated to GCPD and immediately finds out that six inmates escaped Arkham, including Barbara Keen. Theo Galavant is behind the prisoners escape and his sister Tabitha is the one that did it. Theo wants to make them into a team of outlaws and they will have a wonderful future. Richard, Jerome’s friend refuses the offer and Tabitha quickly kills him.
Bruce and Alfred finish the bomb and detonate. They are finally able to enter the room and find a hidden office. Bruce finds a note with his name on it and reads it. The note is from his father and the main message he tells Bruce is that you can’t have happiness and the truth, you have to choose. Bruce feels he has a true calling. We see Jim looking at himself in the mirror, possibly having the same thought in his head…