A flag on fire signals the beginning of House of the Dragon episode three. That ship's banner is from a vessel with many ravenous flames licking at the wood. We're with the Crabfeeder, who is treating several sailors cruelly. Daemon arrives with his dragon and makes an isolated attack on the Sellswords, but they are now well-prepared to defeat him.

While the conflict at the Stepstones rages on after more than two years, Viserys now has a two-year-old kid with Alicent. Otto is still in charge while hiding behind a lie-filled facade.

Viserys invites Rhaenyra to go on a hunt with him that will take place as part of the King's festivities. She is unhappy because she thinks the King's son will now take the kingdom.

Rhaenyra soon encounters Jason Lannister, who tries to win her over by asserting his dominance and referring to Rhaenyra as his queen…and future wife. Instead, she grinned and left, saying thanks for the wine.

That evening, in the twirling light of the fire, Viserys is persuaded to send assistance to assist Daemon in getting rid of Crabfeeder. Rhaenyra is still dissatisfied.

Daemon learns that he will soon get men and boats from Viserys as a means of easing their tension. He decides to act as a trap to remove the crabs from their caves.

Daemon fares well but regrettably gets shot by an errant arrow. Corlys' troops show up and start to fight as the Sellswords close in around him for the fatal blow. As the balance of power shifts due to the appearance of a dragon, many men are set on fire. Daemon goes into the caves after the Crabfeeeder as the battle continues outside. When he comes back, he carries the Crabfeeder's severed remains.