On a training day outside the cave where the Armorer creates gear for the Mandalorians, the Children of the Watch are honing their skills in combat and blaster firing to learn the Ways of Mand’alore. Mando notices Grogu watching crabs on the shore, and he brings him to the training pit to begin his own training. Bo-Katan Kryze questions whether it's wise to pit a babbling baby against a Mandalorian foundling, but Mando insists that this is the only way for Grogu to advance from foundling to apprentice. The foundling who was accepted into the Ways of Mand’alore in Episode 1 of “The Mandalorian” Season 3 is chosen as the challenger. He asks why Grogu doesn't have a helmet, but Mando explains that he is too young to understand the Creed. The foundling chooses training darts as the weapon for the challenge, but Grogu struggles to comprehend the instructions from the referee, known as The Judge. The foundling strikes Grogu twice in the chest with the darts, but Mando encourages his ward to demonstrate his abilities. Grogu harnesses the Force to propel himself into the air like his trainer Luke Skywalker, then lands and shoots all three darts at his challenger, emerging victorious.
After the foundling's defeat, he sulks near the water's edge when a creature resembling a dragon swoops in, seizes the child with its talons, and flies away. Mando aims to shoot the creature, but Paz Vizsla advises against it to prevent harm to the foundling. Instead, four Mandalorians pursue the creature in flight. As the creature flies a great distance, one by one, each Mandalorian runs out of fuel and lands, except for Bo-Katan, who chases the raptor in her ship to its lair. Bo-Katan returns, marking the location of the creature's lair and calling for a hunting party to rescue the foundling. Mando requests to join the mission, and the Armorer assigns Paz Vizsla and the Shriek-Hawk Training team to rescue the foundling but without using blasters to ensure his survival. As the hunting party sets off, Grogu watches in amazement. However, the Armorer reminds him that he is too young to participate and still has much to learn.
In the cave, the Armorer leads Grogu to the Forge where Mandalorian armor is crafted. She explains that every being starts as raw ore and must endure risks and hardships to become a Mandalorian. As the Armorer shapes steel with the Forge, Grogu's mind drifts to a traumatic memory. He recalls the time when Stormtroopers killed several Jedi protecting him. He narrowly escaped until a Jedi named Kelleren Beq rescued him, killing multiple Stormtroopers and fleeing with Grogu on his bike through the bustling ecumenopolis of Coruscant. They arrived at a safe place where Beq's allies awaited them, and the two departed in a ship, evading Empire ships in pursuit by jumping into hyperspace. Grogu returns to reality as the Armorer hammers the chest plate she forged for him. She places a Beskar steel chest plate on Grogu's chest, symbolizing his membership in Mando's clan. The armor features the Mudhorn signet, representing the creature they defeated together.
As Bo-Katan and her team draw nearer to what seems to be a raptor's lair, they walk on foot through the rocky dunes until they arrive at the base of a tall peak. Bo informs the group that the raptor's nest is at the top, and suggests they rest at the foot of the hill for the night and commence their search in the morning. During dinner, Bo questions how the Mandalorians plan to eat without removing their helmets, to which Mando replies that they must eat in isolation. Paz Vizsla honors Bo by inviting her to dine by the fire, as she leads the party. Later, as the others disperse to find a private area to eat, Bo removes her helmet and eats quietly.
The next day, the Mandalorians climb the steep peak, and upon reaching the nest, they discover that the raptor is absent. While Paz Vizsla is eager to rescue the captive child by diving into the nest, Mando alerts him to a heat signature in the area. Bo advises Vizsla to hold off, but he is motivated by the fact that the captive child is his son, Ragnar. Vizsla ascends into the nest, but the cries of three baby raptors draw the attention of their mother - the creature who abducted Ragnar. The raptor spits out Vizsla's son, and he screams for help as he hangs from the raptor's mouth. Vizsla jumps towards his son, but the raptor snatches both him and his son and flies away again, with the Mandalorians in pursuit.
Bo-Katan loses her shoulder armor while battling the creature, but she manages to continue the pursuit as the others use their fiber cord whip to slow down the beast. Bo stabs the raptor, causing it to release Vizsla, who crashes to the ground when his jetpack fuel runs out. The others immobilize the raptor's wings, and Mando frees Ragnar from the creature's talons. Mando delivers Ragnar to his father, who thanks him for his efforts. Despite previously rejecting him as an apostate, Paz Vizsla expresses gratitude to Mando. Meanwhile, the raptor plunges into the water below, where it is devoured whole by what appears to be a massive crocodile.
After the successful rescue of the foundling, the hunting party returns to the Children of the Watch, and all members give them a round of applause. The Armorer commends Bo-Katan for performing the highest honor in Mandalorian culture: saving the life of a foundling. As she forges Bo's shoulder plate, the Armorer offers to include the signet of the Nite Owl, Bo's former guild. Bo-Katan gazes at the Beskar insignia of the Mythosaur on the cave wall before requesting to have the signet of the Mythosaur on one shoulder plate while keeping the Nite Owl on the other. While crafting the Mythosaur signet, the Armorer asks Bo about her encounter with the creature. Bo insists that she saw a real beast under the Living Waters on Mandalore, but the Armorer believes it was a vision. The Armorer fits the plate on Bo's shoulder and repeats the Mandalorian saying, "This is the way," as Bo continues to stare at the insignia on the wall.
