The Haunted Palace Episode 7 opens with the male drowned ghost spewing black water onto Yeo-ri while placing a curse on her. Gangcheori intervenes and beats the ghost until it flees. Meanwhile, Pung-san senses everything and is pleased that his strategy is taking effect.

Yeo-ri weakens and Gangcheori insists on carrying her. She momentarily gets caught up in the closeness but quickly regains composure, explaining she’s just drawn to Yoon Gap’s body, which is why she keeps unintentionally getting near Gangcheori. The Imugi watches, amused by her rambling.

Inside the palace, the King subjects the court ladies to torment. The spy, Aeng-du, was initially recruited by the Queen Mother. A flashback reveals how Pung-san, acting behind the Queen Mother’s back, bribed Aeng-du to plant the skull in the Queen’s quarters. In the present, a guard hands Aeng-du a poisoned message. Believing it to be her escape, she ends up fatally poisoned.

At the Yoon residence, Mrs. Yoon and Gangcheori continue bickering over medicinal remedies. Gangcheori realizes she sold her hairpin for more medicine. She acknowledges it may not be effective, but it gives her peace to feel like she’s helping her son. Gangcheori feigns irritation, then drinks it anyway. In another room, Yeo-ri is still thinking of Gangcheori but dismisses it as longing for Yoon Gap. Meanwhile, guards uncover valuable jewels in Aeng-du’s quarters, confirming her role as the mole. The King tasks Minister Kim, his maternal grandfather, with the investigation since he trusts no one else.

The following day, Gangcheori approaches Bibi to request help with the 8-foot ghost. However, Bibi still believes he’s just playing with Yeo-ri.

Elsewhere, the Queen Mother scolds Pung-san for attacking an unborn child, but he manipulates her into thinking it was her own idea. He reminds her that revenge for Yeong-in requires harming the King. After he leaves, Court Lady Han informs the Queen Mother that Yeo-ri is the King’s personal shaman.

The King, on the other hand, is making an offering for Yoon Gap, revealing that they were once close friends and expressing hope for his soul’s peace. In their ghost investigation, Yeo-ri and Gangcheori are convinced the drowned ghost and the 8-foot ghost are linked. She notices a child ghost pestering palace kids and hatches a new plan.

Later, she finds Bibi attempting to devour Minister Kim and intervenes. Gangcheori joins her, siding with Yeo-ri until Bibi relents. Pung-san observes this and concludes that Yeo-ri is aligned with two Imugis. Alone, Gangcheori tells Yeo-ri that Bibi only targets corrupt and malevolent men, but Yeo-ri remains skeptical since Minister Kim has a clean reputation. Elsewhere, Kwak’s circle discusses Minister Kang’s death at Bibi’s hands, and the rumor that Bibi is possessing Yoon Gap. Kwak is especially convinced of this.

That evening, the King visits Choi to talk about slave reform. Choi, who had retired due to health reasons, declines the offer, claiming the reform is unachievable. As the royal procession departs, the one-legged ghost attacks by hurling a tile at Choi, only for a guard to save him, frustrating the spirit.

That same night, Yeo-ri captures the child ghost. However, the only clue she extracts is that the talisman was placed by a eunuch with blackened fingertips. This eunuch is revealed to be Pung-san’s assistant, whose fingers are stained from cleaning ashes in the hidden cave.

The Queen falls ill, developing blisters across her neck and torso. Her lady-in-waiting, Court Lady Oh, reports her nightmares to the King, who summons Yeo-ri.

But Yeo-ri has already been called by the Queen Mother. As they talk, the Queen Mother begins to question Pung-san’s credibility. Suddenly, the King storms in, demanding Yeo-ri be released. Though respectful, he accuses the Queen Mother of planting a spy. She loathes his moral uprightness but acknowledges that this same virtue means he’d never kill his brother.

She allows Yeo-ri to go, but the shaman collapses—she’s developed the same blisters as the Queen. It turns out that both have fallen victim to the curse cast by the drowned ghost.

In the aftermath, Pung-san gets intel from Court Lady Han and is shocked to discover that Yeo-ri hails from Yongdam village.

To break the curse, the ghost must be captured. Gangcheori devises a risky plan: use the King as bait. The King, desperate to save his wife, agrees. During preparations, Bibi confronts Gangcheori about his growing affection for Yeo-ri. Gangcheori denies it but snaps when Bibi claims Yeo-ri is beyond saving.

That night, Gangcheori, the King, and two royal guards arrive at the riverbank. The King must relinquish his protective ghostbane stone to attract the spirit. The guards object, but Gangcheori goads the King by calling him a coward, provoking a near brawl. The King angrily asserts that Yoon Gap was his true friend and expresses disdain for Gangcheori, echoing sentiments Yeo-ri has shared. Gangcheori is stung by how everyone seems to favor Yoon Gap over him. As they wait, they taunt each other. Gangcheori is surprised to learn that the King’s marriage is based on genuine care, especially since the Queen arrived at the palace at a young age.

The following morning, Yeo-ri has a prophetic dream. She wakes up and alerts the Head Eunuch that it’s a trap. They rush to the river, but they arrive too late.

As the King grows impatient, he cuts himself to draw the ghost. The male spirit appears and drags him underwater, marking the chilling conclusion of The Haunted Palace Episode 7. For full recap, do check out the link below.

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