At the end of “SNAFU,” Dr. Ivchenko and Dottie set forth a plan that resulted in a deadly melee in a movie theater. Forty-seven people are dead. Agent Sousa discovers the Howard Stark-labeled canister that released the mysterious gas. He accidentally breathes some in. Sousa attacks Thompson before being knocked unconscious. When he awakens, he realizes that he wanted to kill his fellow agent. Peggy believes Ivchenko has a plan for the other 10 canisters. He has a target in mind. Howard Stark believes it’s him.
Howard Stark hands over all the information he has on the Battle of Fennel. He says he unintentionally created a product for the army that leads to psychosis. His “Midnight Oil” was supposed keep soldiers awake for days at a time. His lab was raided. That’s what led to the tragedy at Fennel. Howard wants to put himself out there as bait to catch the bad guys.
Ivchenko and Dottie are pulled over by the police. The officer lets them off with a warning until a call comes through on the radio. Soon Dottie has a gun pointed at the cop. She later takes out a guard at an airplane hangar. When she makes her way back to the car, Ivchenko lets her know that their plans have changed. He just found out that Howard Stark is back in town.
An outdoor press conference puts Howard Stark in plain sight. BANG! BANG! BANG! Gunshots rip through the city street. Howard is whisked away to a police car. It takes off leaving Jarvis in the dust. The cop driving the car is the same one who pulled over Dottie. He’s under Ivchenko’s spell. Howard is being taken to meet with the doctor.
Realizing that it’s VE Day, Peggy and Thompson believe that Ivchenko has a plan to take down Times Square. A hundred thousand people are there. Jarvis thinks the bad guys are likely headed for his boss’s hidden vault of planes. Howard had shown it to Dottie six months earlier before he knew she was a killer. In the present day, Howard learns that Ivchenko’s brother died in the Battle of Fennel. It’s why he’s being made to suffer now.
Howard falls under Ivchenko’s hypnotic spell. He’s brought back to a time when he believes he can find Captain America. A vision of Peggy presents him with his shield. Howard believes he can bring Steve Rogers home. In the present day, the SSR arrives a little too late. Howard Stark has already taken off in one of his planes. Jarvis knows that he’s the only one who can fly a second aircraft with the purpose of shooting him down.
Peggy tracks down Ivchenko. She gets into a brutal slugfest with Dottie, who takes a baseball bat to her. Nevertheless, Peggy gets the upper hand. She kicks Dottie out a second story window. Ivchenko has fled. Peggy takes to the radio transmitter he was using to try to convince Howard that the fantasy in his head isn’t real. The actual plan is to release the gas over civilians.
Ivchenko gets the drop on Thompson. He knocks him unconscious. He then tries to work his mind games on Sousa. Ivchenko orders him to shoot Thompson. That’s not going to happen. Sousa knocks out Ivchenko. He had put cotton in his ears so he couldn’t hear what the doc was saying.
Howard’s plane is headed for New York City. Jarvis is in pursuit. He asks Peggy if he should take the shot. The answer is no. Peggy desperately tries to convince Howard that Steve Rogers is gone. They all have to move on. They have to let him go. Her words finally sink in. Howard realizes that he was under a spell. Jarvis ultimately leads him home.
Peggy and Howard are reunited in the hangar as Ivchenko is arrested. The doc is gagged as well. As for Dottie, she escapes. Peggy realizes that they’ll be seeing her again someday. She returns to the SSR offices to a steady stream of applause from her colleagues. But at the end of the day, Thompson is the one who gets credit for thwarting the attack on Time Square. Sousa is ticked. Peggy, however, is fine. She knows her own value. Anyone else’s opinion doesn’t matter.
As flattered as she is, Peggy declines Sousa’s invitation to grab a drink. She has to meet a friend. Angie is shocked when Jarvis lets her know that she and Peggy are free to live in one of Howard Stark’s beautiful homes. She heads off to call her mom.
When they are alone, Jarvis shares a nice moment with Peggy just before he reveals that Howard is destroying all of his weapons. He then turns over the vial of Steve Rogers’ blood. Jarvis is certain that she’s the one person in the world who will know what to do with it. Peggy takes the vial to a bridge. She pours it into the waters below. Then she says goodbye to the love of her life.
Bound at the mouth, Dr. Ivchenko is led into his prison cell. He can’t speak, but his cellmate hopes there’s another way they can communicate, as he is a big fan of his work. The other prisoner realizes that things seem bleak. He lets Ivchenko know that there’s still hope, for they are in America. And America is the land of opportunity.