Episode 20 recap: Yan Zhang Yun was demoted from his position and became a commoner.

Yan Zhang Yun became a prisoner, saying that Xiao Quan's failure to kill him in the past 15 years might be his greatest regret. Xiao Quan then realized Yan Zhang Yun's true identity and said that the real regret was that Qin Yan had not been able to avenge himself in the past 15 years. Bai Yi appeared before Fushao, and Fushao had vague recollections of fragments related to him.

At this time, Chuyue came to Xiao Quan, willing to cooperate with him, but Yan Zhang Yun had to return to her side. The news of the Princess Jiayang's murder reached the imperial palace. The death of the foreign princess in the south made it difficult for the emperor to account to Ninguo. Xiao Quan stated that as the princess's bodyguard, Yan Zhang Yun had an inescapable responsibility, and he must be killed to appease the anger.

Suddenly, the officials were divided into two factions - one unwilling to lose a great general from the south due to the princess's death. Fushao came to the prison to visit Yan Zhang Yun, personally feeding him dumplings, reminding him of their childhood days making dumplings together. The emperor was conflicted about whether to release Yan Zhang Yun - if released, he could not account to Ninguo, but if not, a talented general would be lost. Fushao pleaded with the emperor, who then agreed to release Yan Zhang Yun and gave Fushao a token to allow her free access to the prison.

Xiao Quan mocked Yan Zhang Yun for being able to stay in prison longer, and Yan Zhang Yun retorted that Xiao Quan's scheme to kill Princess Jiayang was exposed. Xiao Quan admitted that he had not been able to overturn Yan Zhang Yun's (Qin Yan's) case in 15 years and said he would find a way to get rid of Yan Zhang Yun.

Fushao's embrace with the released Yan Zhang Yun was witnessed by the Emperor. The officials advised the Emperor not to release Yan Zhang Yun, considering the gravity of the situation. Fushao, feeling lost, encountered Bai Yi on the street, and though her memories had not fully returned, she felt a sense of familiarity towards him.

After Dawn left, Bai Yi became even more determined to eliminate Yan Zhang Yun. Dawn discovered the wound on Jiayang's body, which was very similar to his senior sister's sword, and returned to ask Bai Yi about his senior sister's whereabouts, suspecting her to be the murderer. As soon as she finished speaking, she eyed Bai Yi with suspicion. Bai Yi's junior brother then stepped forward to clear their master's name. Bai Yi pretended to arrange for Qingyun to investigate Qingluo's whereabouts, promising to give Dawn an explanation.

Doctor Qu was awakened by Dawn. He and the perfumer found that the Imperial Jade Fragrance contained cinnabar silver powder, but the craftsmanship was so exquisite that they could not extract it. Just as they were troubled, Brother Knife came to Doctor Qu asking for medicine, saying the previous medicine was very effective and he no longer wanted the Imperial Jade Fragrance. Dawn suggested extracting the cinnabar silver powder from Brother Knife's urine, so she had him drink water to promote urination, and successfully extracted the cinnabar silver powder from his dried urine.

The Fourth Prince of Ning State demanded an explanation from the Emperor, saying that the Princess died in Yan Zhang Yun's arms and Yan Zhang Yun must be executed. The Emperor was in a dilemma, but at this time, Dawn brought in Brother Knife, who was lying motionless with black eyes and weak limbs. She explained to the ministers that Brother Knife had become this way after using the Imperial Jade Fragrance, and presented the evidence that the fragrance contained cinnabar silver powder.

The Emperor immediately took a firm stance, telling the Fourth Prince of Ning State to give an explanation, as his country was not to be casually trampled on. The Prince hastily clarified that he was unaware of the cinnabar silver powder issue. The Emperor then gave him a way out, saying that trade could continue, but the Imperial Jade Fragrance would be banned from trade, with a 20% tariff increase.

Afterward, the Emperor asked Xiao Quan for his opinion. To protect himself, Xiao Quan painfully said that Ning State's intentions were sinister and the Imperial Jade Fragrance must not be allowed to trade. The Emperor, in order to give Ning State an explanation, demoted Yan Zhang Yun to a commoner with no official position, and personally handed the murderer over to Ning State.

At night, Dawn personally cooked for Yan Zhang Yun to wash away his misfortune. Wei Tianjiao took over Yan Zhang Yun's position. Chuxue stayed up all night sewing clothes to welcome Yan Zhang Yun, and the maid stood up for her. Dawn brought mugwort to Yan Zhang Yun, and when Chuxue heard Yan Zhang Yun's words to Dawn, she sadly returned to her room and burned the clothes.

The next day, Dawn disguised herself and actively sought out Xiao Quan, saying she was willing to cooperate with him to investigate the whereabouts of the jade ring, on the condition that he help her regain Yan Zhang Yun. Xiao Quan cared about the jade ring because he was worried that it contained evidence of his collusion with Ning State in orchestrating the Guan Yu Incident years ago.