At the Katze Plains, Ainz asks of Gazef if he is indeed serious; the Royal Head Warrior is. Both know Gazef will die, and while Ainz as an enemy combatant is within his reach, the fact that gazef cannot react to a missed tentacle strike by a Dark Young shows a devastating difference in power. Even as Gazef still wants a duel, Ainz wonders if this is because he allowed Gazef to live. Gazef states it is out of duty and honor to Re-Estize that he fight Ainz. So after much assurance, Ainz as a collector finds it a waste to kill a warrior of his rare caliber, and accepts Gazef's formal challenge for a duel.
Brain and Climb are stunned by Gazef's challenge, and the Head Warrior asks Ainz if the former pair could play witnesses to their duel; Ainz accepts seeing no issue. But as Brain begs to join Gazef to provide better odds, Gazef berates him that his begging dishonours them both. Seeing, and respecting, the look in Gazef's eyes, Ainz accepts Gazef's conditions to duel only him and have the two witness. Both stepping to side further away from Brain and Climb, Ainz announces a PVP Match to begin. Ainz states to return Gazef's body in preserved condition for resurrection magic, but Gazef does not wish to be revived, no does he have qualms wish tossing his corpse. All he asks is that his friends watch, and they agree to.
Before commencing, Ainz requests to appraise Gazef's sword, Razor Edge; the Head Warrior politely hands his blade over for analysis. Ainz asks if Gazef knows the full extent of his blade; the Warrior knows its has the power to cut through even the most refined metals, but Ainz attests that is only a fraction of its power. Pulling a common dagger from inventory, Ainz cuts his cheek bone only for it to instantly heal, comparing the sword's magical level to the dagger, thus cannot hurt him. BUT, material of the blade can break through his defenses and bring harm to him, even kill him if the attack is just right. Meeting basic PVP basic pre-reqs, Ainz asks if he can have the sword upon victory, but Gazef cannot allow that as the sword belongs to the Kingdom, as it is not a personal belonging. Ainz then accepts a PVP alternate where items are returned to owner.
After Gazef gives his gratitude, Ainz asks of Climb to cast the starting signal, and he brings out his magical bell set as the signal. With Gazef and Ainz at the ready, Climb signals the fight; but as Gazef attack, Ainz [Stops Time] to walk up to Gazef. Stating countermeasures against time spells are essential, he uses 'Delay Magic' for "True Death" on Gazef. Ainz says his goodbyes, and that he had no ill will towards him. Resuming time, Ainz catches Gazef's body as Brain and Climb look on in disbelief. Ainz lays his body, closing his eyes and mouth, and out of honor to Gazef states he will end his advancement. Upon stating he will return the body after purifying it, Brain instead chooses to take him now. Accepting the decision, Ainz informs them that no low-level resurrection spells can undo his casting of True Death, leaving Gazef as permanently dead. Ainz tells the two to inform their leaders that if E-Rantel is ceded in the next few days, he will refrain from deploying the Dark Young in the capital. Taking their leave, Climb carries Razor Edge as Brain carries Gazef's body.
The same day following the war, Jircniv hears Ainz killed 70,000 in the initial casting of his spell, with an addition 100,000 plus after the summoning; while the Imperial ranks suffered minor casualties due to running from the horrors of the scene, and also hearing of how Gazef lost his life in a duel to Ainz. Later that night, as Nobles and Royals argue on giving E-Rantel as a cheap price to preserve the Kingdom, Ramposa is in despair over losing Gazef. At the Watchtower, Brain grieves over Gazef's death and looking over all he did to surpass his rival. Climb arrives and, after regaining his composure, hears Prince Barbro is still M.I.A. so an Adventurer team is searching for him. With all that has happened, the Nobles will gain new power over the Royals. As Brain despairs, Climb gives his insight that Gazef wanted them to see Ainz's power to better plan a defense to protect their future. Brain, thinking he wanted to defeat Gazef, vows to surpass his skill and be victorious where Gazef failed; swearing his rival will have regrets in the afterlife. With that, Brain invites Climb for drinks in the tavern while they still can.
In the Spring, Zanac attempts to encourage his depressed father to take a morning walk, but with E-Rantel officially ceded to the Sorcerer Kingdom, Ramposa feels down. Zanac promises to continue with what he can, even taking over Barbro's duties. In the Royal Garden, Renner wishes to make an alter in Memorial to those who died, and Climb goes to deliver the flowers that she picked. While in E-Rantel, a boy throws a stone at Ainz, demanding his father be returned having died at the Massacre on the Katze Plains. But, Albedo prepares to kill him as his mother begs to allow a child's actions be overlooked. As Albedo decrees that any irreverent actions are punishable by death, Momon steps in to protect them; even calling out Albedo's violence on a child over throwing a rock would make no one want to marry her. Momentarily off put, Albedo regains her composure to restate that any who disrespect Ainz will die, regardless of age, but Momon won't permit that, and is "charged" with treason by Albedo. As the two take battle postures, the citizens look on in their homes, but Ainz arrives and has Albedo give an ultimatum: as Ainz doesn't wish to rule with force, should Momon join his forces to represent and police the city, all citizens will be spared from Ainz's wrath. Momon states he will not follow an unjust law, but Albedo gives a rebuttal that Ainz will give just laws, and if he refuses, she will kill him and any human around them as collateral. Momon stands down and agrees to their turns, but affirms that if any of the people are hurt needlessly, he will come for Ainz and all who serve him.
Later that afternoon, Albedo gives Demiurge a report that E-Rantel is running without incident, surprised by human adaptation. Demiurge tells her that is their survival instinct to follow the strong, and that the very existence of Momon alleviates their fears, making their jobs all the better. Seeing that the people will give information to Momon, and unite under his name, the risk of infiltration and espionage is reduced and the threat of outside forces is mitigated. Demiurge admits he is overwhelmed that Ainz could have that so far in advance, and it is no wonder he was leader of the Supreme Beings. Albedo agrees, stating they will continue to serve their master. Entering the E-Rantel Throne Room, Ainz thanks his Guardians and Pleiades for all they have done, with each happy to serve. Ainz, seeing each of them as the children of his friends, asks that they not call him by his official King title, wanting them to continue addressing him as Ainz. With that said, Nazarick will now step onto the New World stage, and has today be the official founding of the Sorcerer Kingdom under Ainz Ooal Gown.
The episode contains examples of:
- The Bad Guy Wins: Ainz and Nazarick successfully take over E-Rantel and crippled Re-Estize's entire military force.
- Dramatic Irony:
- Climb lies to Renner about the true scope of Nazarick's power to ensure she never loses hope. Unfortunately, Renner does know and is one of Nazarick's conspirators.
- The people of E-Rantel would rather stay with Momon than Re-Estize to protect them from Ainz Ooal Gown. Unknown to them, Momon is Ainz.
- Engineered Heroics: Nazarick does this at the end, painting Momon as E-Rantel's true hero. That's because Momon is Ainz Ooal Gown and their true plan is to make the denizens of the city more loyal to him than loyal to the kingdom.
- Et Tu, Brute?: To all of E-Rantel's horror, Re-Estize chose to abandon them to Nazarick.
- Heroic BSoD: Brain, Climb and Ramposa goes through this after Gazef died.
- Heroic Sacrifice: Climb believes Gazef's actions to be this, hoping they could find some weakness in Ainz.
- Heroic Vow: After getting comfort from Climb, Brain unsheathes his sword and declares he'll get stronger to surpass Gazef.
- Impossible Task: Ainz tells Brain and Climb that there is a way to resurrect Gazef. Unfortunately, they need a higher-tier spell to bring him back which they and the entire world don't possess.
- Nothing Is the Same Anymore: Nazarick's presence has effectively shaken the status quo of the New World. What this means is anyone's guess.
- Oh, Crap!: Jircniv and his subordinates got the report from the battlefield and they are extremely horrified at just how powerful Ainz really is. It got so bad that the Emperor laughs in madness, knowing he has just done something equivalent to opening Pandora's Box.
- This Is Something He's Got to Do Himself: Gazef refuses anyone, even his own comrades's aid in intervening this PvP match no matter how outmatched he's in.
- Time Stands Still: Ainz advises to the frozen Gazef that counter spells must be deployed in case anyone uses time spells.
- Yank the Dog's Chain: Just when it's thought Gazef has some chance to defeat Ainz, it turns out that the latter prepared a time spell.
- You Monster!: A young boy cries this out while at the same time demanding them to give him back his father. He would have been killed if Momon hadn't stepped in to protect him. This is all Demiurge's ploy who brainwashes the kid to do the deed in the first place.
- Gazef along with more than 170,000 soldiers are killed by Ainz Ooal Gown and the Dark Young.
- Nazarick and the Baharuth Empire won the Annual War, forcing Re-Estize to give up E-Rantel in order to protect their kingdom.
- Nazarick takes over E-Rantel and blackmails Momon into serving them.
- Ainz founds the Sorcerer Kingdom.