Episode 3 recap: Nan Hao ordered everyone to descend the mountain and seize the treasure.
Han Mu tenderly took care of and taught Xuanli, and when Qingxue saw their intimate behavior, she became jealous and reported it to the senior brother, saying that Xuanli's cultivation had not improved because Han Mu was being too gentle with her. Upon hearing this, Han Mu voluntarily suggested an internal competition. During the competition, Qingxue was outmatched in skills but took the opportunity when Xuanli turned away to attack her. This attack unexpectedly triggered a strange power in Xuanli, injuring Qingxue. Qingxue sought the intervention of Nan Hao, claiming that Xuanli had learned forbidden techniques. Nan Hao didn't believe it, but Qingxue insisted that Xuanli had sent her flying with a single palm strike, which must be a forbidden technique.
After seeing the injury on Xuanli's back, Han Mu promised to protect her in the future. Xuanli praised Han Mu for not only being good-looking but also having a great personality, like a little fairy, which made Han Mu blush. Nan Hao proposed another treasure-seeking competition. Recently, villagers passing by Putuo Forest outside the Jiuchong Mountain had been mysteriously killed, so they sought help from Jiuchong Mountain. Nan Hao discovered that it was because a treasure had appeared, guarded by an evil spirit that was responsible for these incidents. Nan Hao suggested that they all descend the mountain together, and whoever obtains the treasure will be declared the winner and receive a Concentrated Spirit Pill. Everyone was excited about the idea. Before setting off, Han Mu was called aside by the master's wife, who entrusted Han Mu with the task of protecting Xuanli. Han Mu was puzzled because she couldn't remember anything about her encounter with Xuanli in the small cottage, and Xuanli was the same. Han Mu asked the master's wife, who hastily explained that it was the work of the demon clan. Han Mu also inquired about the dark aura surrounding Xuanli, and the master's wife attributed it to the demon clan as well, instructing Han Mu to keep it a secret. Han Mu agreed.
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