During a diplomatic travel in another country, the Queen is informed about what happened at the castle by her envoys; meanwhile, the King gives rewards to the Heroes for their efforts in dealing with the Wave of Catastrophe, but refuses to give even a minimal reward to Naofumi, claiming it is paid for the service of having Raphtalia's Slave Crest removed. Ren and Itsuki intervene on his favor again, convincing the King to reward Naofumi. Afterward, Naofumi and Raphtalia pay a visit to the slave trader to recast the slave seal on Raphtalia by her request, despite Naofumi insisting it is unnecessary.
Naofumi bought a monster egg from the slave trader which hatches into a female Filolial, to whom Naofumi names Filo. But, is Filo a normal Filolial, or something else?
Tropes for this episode include:
- The Big Race: When Malty is forbidden to take the village by force by the Queen's decree, she challenges Naofumi for the right to rule the village against Motoyasu and his dragon. In-spite of their attempts at cheating, Naofumi and Filo win.
- Black Comedy: Naofumi jokingly marvels at how much Raphtalia would be worth if he sold her, especially since virgins are worth more.
- Deus ex Machina: Just as Malty was going to have the knights execute the villagers for defying her decrees, her mother's Shadow guard appear to stop them, leaving a message from the Queen that forbids her from this.
- Enlightened Self-Interest: When the villagers thank Naofumi for saving their village from Malty's taxes, he declines their gratitude and demands payment. He then explains that he has no interest in their money because they need it to help repair the village, so he takes an unused carriage as payment. It's a win-win for his party and the village.
- Happiness in Slavery: Raphtalia willingly has her slave crest reapplied as a sign of loyalty to Naofumi.
- Hypocrite: Malty tries claiming victory by accusing Naofumi of cheating when Filo transforms, despite the fact that she and her royal knights did everything they could to illegally obstruct him.
- Instant Awesome: Just Add Dragons!: The Slave Merchant makes a point that if he buys one of his monster lottery eggs, it could hatch into a dragon which are not only powerful, but fetch a high price if cared for properly.
- Irony: The King tries denying Naofumi his pay for fighting the waves by charging him for Raphtalia's slave crest to get removed. What do they spend the money on? An new slave crest.
- Karmic Jackpot: Itsuki and Ren point out that the slave crest removal the King is fining Naofumi over was because he and his daughter rigged their duel and that they did not even want it. They also go on to point out that it would be fairer to compensate him more since he valiantly protected the village while the rest of them were off monster hunting.
- The village witch gives Naofumi and Raphtalia a free reading and a magic grimoire free of charge for saving her grandchild's life during the Wave.
- When Naofumi calls out Motoyasu and Malty's unfair taxes, the villagers rally against him, as not only with their hefty taxes bankrupt every villager, but Motoyasu just showed up out of nowhere and declared himself lord while Naofumi actually helped the villagers by defending them during the Wave.
- Kick the Dog: King Aultcrey tries paying Naofumi the lowest amount of reward money among the heroes for their fight against the Wave, only to then take it back as "payment" for removing the slave crest that neither Naofumi or Raphtalia wanted removed. It takes an argument from Itsuki and Ren before he concedes the minimum amount.
- Laser-Guided Karma: Motoyasu mocks Naofumi by saying that Filo is no match against his dragon. Filo responds by kicking him in the balls into a hay-stack.
- After Malty tries accusing Naofumi of cheating, only for the Queen's shadows to back up his claims of the opposite.
- Magikarp Power: The Village Witch cites that while learning magic from a grimoire is taxing, it will allow you to learn any spell if mastered.
- Mon: Naofumi gains Filo by buying a monster lottery egg from the Slave Merchant.
- Out-of-Character Alert: Naofumi realizes just how much he has changed when he reflexively thanks the Village Witch for giving him her grimoire and her faith that he can master it.
- Shapeshifting: It is not until after they win the race does Filo transform into her true form, becoming taller and puffier. By the end of the episode, not only can she talk, but she can take on a human form as well.
- Tax Deductions: King Aultcrey gives Naofumi the minimum payment for his efforts in the wave... only to try and take it back as "payment" for having Raphtalia's slave crest removed.
- Malty has Motoyasu appointed as the village's new lord, their first decree being that the villagers are to pay a fifty silver tax (both for entering and exiting the village) to repair for damages from the Wave. To put this into context, one silver is all it costs to pay for a night's stay at the inn with complementary food. If this tax were to be implemented, it would leave everyone in the village in abject poverty.
- Translator Microbes: Averted. Naofumi tries to have his shield translate the language in his new grimoire for him, but it doesn't work, so he has Raphtalia teach him how to read their world's alphabet.
- Wham Episode:
- Not only is Filo capable of shapeshifting, but she can talk too.
- Naofumi's party now has a carriage and a trader's pass, allowing them free, easy passage across the country.
- Yin-Yang Bomb: The village witch tells Raphtalia that she possesses a natural affinity towards light and dark magic, her being a Tanuki also making her adept at illusion magic.
- Younger Than They Look: When Filo hatches, she starts out as the size of an apple. It only takes less than two days for her to grow to full-adulthood about the size of an ostrich. Naofumi thinks that his growth skill may have had something to do with it.