Contains spoilers for this episode and earlier episodes.
Ed returns home to find Peggy holding Dodd captive. They put him in his own car's trunk and flee to a cabin owned by Ed's uncle. Ed tries to arrange a trade with the Gerhardts, but his calls get him nowhere. Peggy guards Dodd and stabs him after he insults her. Hanzee finds a hotel reservation at the Blumquist house and follows it to Sioux Falls. After racist abuse at a bar, he shoots patrons, kills the bartender and kills two responding officers. He then threatens Constance and uses her call with Peggy to narrow his search.
Ed changes his plan and phones Milligan, offering Dodd in exchange for protection from the Gerhardts. They agree to meet at a Sioux Falls motel. While Ed is away, Dodd escapes his ropes and overpowers Peggy. He catches Ed on his return and hangs him, but Peggy revives and attacks Dodd, then saves her husband. Hanzee reaches the cabin and kills Dodd after another torrent of insults. He asks Peggy to cut his hair, saying he wants to change. Lou and Hank approach before she can begin. Hanzee fires at them, and Peggy stabs him with scissors. He escapes while the officers enter the cabin, where Ed and Peggy finally surrender.