Frieren and her party travel further north and pass by a village that celebrates "Liberation Day". It holds statues of Frieren and her old adventuring party. Frieren recalls a memory of Himmel insisting the statues be made so Frieren will know him, Heiter and Eisen truly existed and aren't just fairy tales. Back in the present, Frieren spots three demons walking in a city and attempts to attack them, only to be arrested for attacking peace envoys.
Later while visiting Frieren in jail, Fern reveals that the demons are the underlings of one of the Seven Sages of Destruction, Aura the Guillotine. Stark asks whether demons sending peace envoys couldn't be taken as a sign that it is possible for demons and other races to co-exist peacefully, but Frieren insists that demons are nothing more than monsters who have learned speech and that making peace with them is impossible. She recalls another memory of her and her old party cornering a demon child who had eaten the daughter of two villagers. Upon hearing the demon child cry out for her mother, Himmel hesitates to kill her. Despite Frieren's warnings, the village chief takes the demon child in to raise her alongside his daughter. While the unconventional family seems happy at first, not long after the demon child kills the village chief and sets his house on fire. She then offers the orphaned village chief's daughter to the couple whose child she's eaten as a sort of twisted apology. Realizing that Frieren was right from the beginning, Himmel allows Frieren to kill the demon child after he takes the village chief's daughter from her. As the demon child fades away, Frieren asks why she called out for her mother again, as demons, like monsters, do not raise their young and so the demon child couldn't have even known her mother. The demon child replies that calling out for her mother prevents others from killing her, though she isn't too sure why.
In the present, it's revealed that Frieren was once again right: Lügner, Draht and Linie, the "peace envoys" were only sent to lower the city's defenses so Aura could raze it to the ground more easily. After Lügner remarks that Frieren is the only possible obstacle to their plan, as she's the only one who saw right through their benevolent facade, Draht decides to kill Frieren in her prison cell. He uses his magic wire to kill the guard. But as he confronts Frieren, Frieren warns him that she is stronger than both him and his master Aura.
This episode contains examples of:
- Badass Boast: When Draht asks Frieren whether she'd say she's stronger than him, Frieren replies that she's stronger even than his mistress Aura.
- The Cassandra:
- Frieren realizes from the start that Lügner, Linie and Draht are bad news, but she's stopped from killing them as the demons have claimed to be peace envoys. Even Fern and Stark doubt her, asking whether the fact that a demon sent peace envoys in the first place isn't proof that peaceful co-existence with demons shouldn't at least be considered.
- In Frieren's flashback, she was the only one in her party who saw right through the demon child's attempt to garner pity and was willing to execute her right away. When both the village chief and Himmel were unwilling to let her go through with it, Frieren warned them that sparing the child was a mistake, but was ignored. Cue a time-skip and Frieren is proven right when the demon child kills her adoptive father and burns his house down.
- Fantastic Racism: Graf Granat hates demons with a passion and was actually planning to kill Lügner, Linie and Draht as soon as they were out of the public eye despite them being a peace envoy. It's only Lügner's last second appeal to Granat's empathy that keeps Granat from going through with it. In a twist of how the trope usually goes, it's made clear that Granat was completely right about the demons and him killing them would have been completely justified, as Lügner is planning to lower the city's defenses to make it easy pickings for Aura.
- The Farmer and the Viper: Frieren recalls how once a village leader kept her from killing a demon child after hearing said child call for her mother. The chief took the child in and raised her alongside his own daughter. After what is implied to be mere days, the demon child thanks the chief for his generosity by killing him in cold blood and burning his house to the ground, then tries to pawn off his now orphaned daughter to a couple of villagers whose child she'd eaten before.
- Foreshadowing: When asked by Lügner whether Frieren trying to attack him, Linie and Draht was his doing Graf Granat replies that he wouldn't be so foolish as to attack a peace envoy out in the open. Sure enough, Granat only shows his true feelings toward the three demons once he has them isolated in a room within his mansion and surrounded by guards.
- History Repeats: In the past, Frieren's party kept her from executing a demon child who had already eaten the daughter of two human villagers because the demon started crying for her mother when cornered. Even when Frieren flat-out told them that demons are liars and that the child was not innocent or harmless, both Himmel and the village chief insisted on at least giving the demon child a chance by allowing her to live among humans. It ended badly. In the present, Frieren is once again the only one to see right through Linie, Lügner and Draht but is, once again, stopped from eliminating the threat they pose because the trio claim they wish to negotiate peace.
- I Want My Mommy!: Weaponized. The demon child in Frieren's flashback starts calling out for her mother whenever she's cornered. Frieren points out that that makes no sense, since demons like most monsters do not raise their young and have no sense of familial relationships. The demon child admits that she only cries for her mother because for some reason it keeps humans from murdering her.
- Manipulative Bastard:
- The demon child calls for her mother whenever she's in a tight spot, even though she's never known her. When asked by Frieren why she does it, she admits that just uttering the word stops humans from killing her and so she kept saying it whenever she was in trouble.
- When confronted by Graf Granat on the murder of his son, Lügner claims his own father was killed by Granat himself but that he chose to put his pain aside for the sake of peace. Of course the viewer knows from a prior flashback that demons never even get to know their parents and have no concept of family so it's pretty obvious Lügner is making stuff up to defuse the situation and lower the Graf's guard further.
- Meaningful Name: The leader of the peace envoys is a demon called Lügner. Lügner is the German word for liar. Later on in the episode it's revealed that Lügner and his companions are, well, liars.
- Truce Trickery: Demon general Aura sends two demons to negotiate a peace treaty with the northern city of Vorig. These two demons quickly reveal (as Frieren, visiting the city, suspects strongly enough to attempt to murder them both on sight) that they're a Trojan Horse with the actual goal of bringing down the magical barrier protecting the city so that Aura can invade.
- You Killed My Father: Graf Granat attempts to kill the peace envoy in the privacy of his manor, as he still holds a grudge against demonkind due to his son's death in the war against them. Lügner invokes this trope to talk his way out of the situation, by telling the Graf that he himself has slain Lügner's father. Subverted with Lügner as the story about his father turns out to be a lie.
