- "Five minutes and already apprehended in an escape attempt? That is just... that is just RUDE."
- —The Warden scolding Jesse and Jack/Petra for immediately trying to flee the Sunshine Institute. src
After being sent through the portal curriculum by the Admin, Jesse falls onto some bedrock having been stripped of their items and now in a new outfit. A jukebox nearby repeatedly instructs Jesse to follow an “orange line” to the check-in zone, making then realize that the Admin teleported them to a prison and their new outfit is that of a prisoner's outfit. If Jesse looks up, the jukebox will also warn them that failing to do so will release the lava above them and kill them. With no choice, Jesse follows the orange line until they reach a sign reading "Sunshine Institute." Suddenly, a Prison Golem (whose name is “Large Henry”) appears right behind them, and they run until they encounter the Warden. The Warden informs them about the Sunshine Institute and leads them inside, only to remember that another arrival has arrived around the same time as Jesse did.
The arrival turns out to be Jack/Petra (whoever did not reset the clock in the last episode), and they take down the Warden before Jesse tells them to escape. However, the Warden calls a horde of guard members called the Associates and Prison Golems down to pursue Jesse and Jack/Petra. The duo sprint through the obsidian maze in front of them to try to escape, all while avoiding mobs the Admin had created, such as Prison Zombies, Prison Slime, and Prison Spiders. Unfortunately, another Prison Golem captures Jesse and Jack/Petra, and takes them back to the Warden, who chastises them for immediately attempting to escape. The Warden then takes Jack/Petra to a place called the "Mush Room," and Jesse to the Warden's office, but not before the Prison Golem carrying them knocks them out.
- "PRISONER X HAS ESCAPED! I REPEAT, PRISONER X HAS ESCAPED!"
- —An Associate after an alarm wails in the Sunshine Institute. src
The Warden orders Jesse to close the office door, which they can comply to do or not. They look outside the window into the Mush Room, where Radar, Nurm, and Jack/Petra can be seen being dragged and pushed around by two Prison Golems. Wile the Warden chats to Jesse about his promotion to being the Warden, his Prison Golem fetches Radar from underneath. As soon as Radar arrives, the Warden shoves him under a machine called the "Iron Breathtaker," which is designed to literally take the breath away of the one underneath it. Meanwhile, the Warden gives Jesse a choice to stay as a prisoner or be promoted to an Associate.
- If Jesse agrees to be promoted, they are given new clothes that symbolize the sign of being an Associate. Rater expresses fright when he hears that Jesse agreed to the promotion.
- If Jesse denies, as soon as Radar steps out of the Iron Breathtaker, the Warden trips Radar, breaking his glasses and giving him a black eye. Later on, his glasses will be fixed with tape.
After Radar is freed from the Iron Breathtaker, Stella steps in the office wearing Associate clothes, much to Jesse's dismay. After she greets Jesse, the Warden is surprised to see that Stella and Jesse knew each other before. She attempts to fuel Jesse's anger by telling the Warden about Jesse's shortcomings and making them look bad in front of him before the Warden discusses some more details about the Sunshine Institute. Before he can say anything further, Stella calls everyone to exit the office while promising to get the Warden's job, which he quickly starts to resent.
When Jesse and company enter the Mush Room, Radar confides to them that he is hungry. There, they meet another Associate called Anthony, who give them bowls and explains that the prisoners make mushroom stew using their bowl and the mushrooms that grow from a mushroom pit.
With the Warden gone for now, Jesse can roam around the Mush Room and complete the following things:
- Jesse can talk to the guards or other guests (such as Brick) about how the Sunshine Institute runs.
- Jesse can make a statue of a mushroom of the guest Rob to paint on his canvas before judging Rob's painting.
- Jesse may find a guest punching the stone floor, who tells them that they are busting out of the building. However, he reveals that anyone who breaks the blocks gets mining fatigue.
- Jesse can reunite with Jack/Petra and Nurm.
- Above Jesse's head, they hear the Admin's voice, only to find out that it is actually coming from a jukebox in the ceiling.
- Depending on Jesse's status in the Sunshine Institute, the following scenarios may happen:
- If Jesse is an Associate, Anthony will give them cocoa beans so they can make a cookie for Radar. However, Anthony confesses that none of the ingredients the guards have are approved by the Warden. After Anthony also reveals that he has no wheat for Jesse, they go to speak with Oxblood, a muscular red person who apparently has a stash of wheat. At first Oxblood refuses, but after some debate he finally gives Jesse the wheat. They then show Anthony the cookie ingredients, where he tells them that the ingredients are now theirs.
- If Jesse is a prisoner, they surround the mushroom pit along with several other prisoners. Jesse successfully retrieves enough mushrooms from the pit to feed Radar.
However, when Jesse retrieves the ingredients, another guest under the name Terry starts attacking Jesse for them with a wooden sword. The Warden suddenly arrives, and Jesse either pins the blame on Terry or he accidentally reveals his intentions with the sword. As punishment, the Warden sends Terry to the zombie mines while Jesse crafts the cookie or mushroom stew for Radar to eat. Radar abruptly acts strange afterwards; he plans to be "Prison Radar," ripping off his sleeves and acting tough in the Institute.
Before Radar can show off his fierceness, however, an alarm sounds, causing the guests to retreat into their cells, and the reason is claimed to be because Prisoner X has escaped. Now with Jack/Petra and Nurm with Jesse and Radar, Jesse makes a plan to get in trouble to enter Cellblock X, a private cell Prisoner X resides in. This is solved when Jesse breaks into Oxblood's cell and finds a hidden room, where they discover a mooshroom hiding inside. All the guests enter afterwards and they move the mooshroom outside, where he provides mushroom soup for the guests.
Sadly, the Warden, along with Anthony, discovers what was going on. Anthony hands over a pair of shears to Jesse, where they are ordered to shear the mooshroom (whose name is revealed to be Geoff, and is called Geoffy by Oxblood) in order to be promoted to/continue being an Associate. If Jesse shears Geoff, Jesse will be promoted to an Associate in the lower depths, but if not, Jesse will be demoted to the lower depths as a guest (Stella will lead Jesse down to their new location).
- "Heh. I'm gonna have loads of friends soon. After all... everyone loves Jesse, right?"
- —The Admin transforming into Jesse. src
Stella, who is accompanied with Lluna, takes Jesse (and their friends, if Jesse's status is a guest) to the zombie mines, where several prisoners are busy munching on zombie flesh. At first, Stella gets sappy and pretends to like her work there, but afterwards she confesses that she doesn't really like it. While chatting, she reveals that Prisoner X has been recaptured and is now back in her cell, leaving Jesse intrigued and even more determined to break in. If Jesse is an Associate, they will be surprised to see their friends have followed them, and their friends admit they caused some trouble to enter the zombie mines.
Jesse explores the zombie mines, where they find out that a hidden redstone circuit in the wall is exposed and opens the door to the hallway leading to Prisoner X's cell. (If necessary, they will also collect some zombie flesh.) Eventually, they will confront Stella to get the resources needed for a lever to activate the aforementioned circuit. The following may happen depending on how Jesse convinces Stella to give them the materials:
- If Jesse simply threatens Stella to give them the materials, she will act even ruder, relenting to give the materials to Jesse due to their convincing. She will then leave her office, whining about how their rivalry has just went overboard.
- If Jesse tries to reason with Stella, she will admit that the Sunshine Institute is probably not where she expected to be in. She then strikes Jesse on a deal: she wants to get out of the Institute, but Jesse must let Stella join their group. Upon complying with Stella's deal, Stella will stay in her office, content; however, the opposite choice will make her leave the office out of frustration with their rivalry.
As soon as Jesse crafts the lever, the zombie spawners start spawning zombies, which Jesse avoids. They make it to the redstone circuit, and open the door. Just as they and their friends are about to enter, though, the Admin unexpectedly arrives, makes Jesse and their friends float upwards to him, and make the remainder of the inhabitants of the zombie mines disappear. The Admin also summons Petra/Jack (whoever is the Admin's champion), and the Warden eating cake off-guard. Consequent to seeing the Warden, the Admin fires him for not keeping Jesse in line, before proceeding to summon a battle arena for Jesse and Petra/Jack, for the sake of killing Jesse. The tables turn when both attempt to strike the Admin instead, but their swords vanish before they do strike. Enraged, the Admin threatens to abandon the Institute, and takes out his anger by removing the Prismarine Gauntlet on his champion's hand, putting it on his own hand, and transforming into Jesse. The Admin also asks Stella to come with him, wherein she complies.
- "Stella is just the beginning. Your other friends will fall in line, too. Lukas, Axel, Olivia... all of them. Don't worry. I'll take good care of Beacontown."
- —The Admin disguised as Jesse, telling Jesse their plan to manipulate their friends. src
Before the Admin takes himself and Stella up to the Overworld, he discloses to Jesse that he plans to manipulate his friends and Beacontown into their own needs. Jesse's friends seize the opportunity to visit Prisoner X with the door open. While following the hallway Petra/Jack share their horrific experience while being the Admin's champion. They even managed to witness Beacontown, which is in a state of worry. The experience left Petra/Jack in a state of despair, but before the conversation can go on Jesse accidentally triggers the Institute's security feature, and only they, Nurm, and Lluna make it to the other side of the closing iron bars. The three are forced to venture off without the other half of the group.
Inside Cellblock X, they find Prisoner X, who turns out to be a woman wearing a straitjacket and muzzle that prevents her from speaking. Jesse removes the muzzle, causing her to yell at the trio fiercely. Prisoner X, now able to speak, reveals more information, including her and the Admin's names (Xara and Romeo respectively). The conversation goes wild, but Jesse manages to convince her to go with Prisoner X. However, there is a condition; in order for Xara to escape Cellblock X without activating the TNT trap above her and killing her, at least one stone pressure plate (multiple of those plates serve as the ground of the cell) must be stepped on (not just an object, as they are too lightweight to activate a plate alone). Jesse reluctantly chooses between leaving Nurm of Lluna behind.
- "Oh, that? It's just my perfect reflexes and photographic muscle memory."
- —Jesse after defeating the Giant Ghast. src
Jesse and Nurm/Lluna (whoever went with Jesse) exit the cell with Xara, who already took off her straight jacket. They reunite with the group, with Jack's reaction being different depending on who went with Jesse:
- If Nurm was brought, he will tearfully tell Jack that Lluna was left behind. Jack becomes grateful that Nurm went with Jesse despite his objections, although Nurm will still feel guilty.
- If Lluna was brought, Jack asks with worry where Nurm is. After Xara explains the cell's situation with the TNT trap, Jack becomes angry at Jesse for leaving him behind. He then vows to get Nurm back with no matter how long it takes.
While everyone exits, they encounter three Associates (whom have overheard about the Warden's demotion) fleeing from the opposite direction, and two prisoners pursuing the Warden. Jesse's group also finds a room full of weapons, which they grab before exiting the Sunshine Institute. Outside, more prisoners surround the Warden, who threatens to blow them up, but upon seeing Xara, everyone except the Warden retreats. As Jesse's group confronts the Warden, he reveals that Xara used to be an Admin (Romeo took her powers away) and the Warden promised Romeo to keep her imprisoned. However, before he can kill everyone and their surroundings via TNT, an arrow fires into his chest, killing him. Everyone turns to face Xara, who was actually the one who killed him. Clearing the confusion and suspicion, Xara confirms what the Warden was telling the truth, but stripping an Admin of their powers is difficult.
Everyone enters the obsidian maze, which they navigate through until Jesse and Xara climb over a wall. They discover a diamond tower not far away, which Xara claims to be the ticket out of the Sunshine Institute. Suddenly, Xara runs off without them, but before they can pursue Xara, a Giant Ghast (a three-faced Ghast) emerges from behind. With the unintended help of other Ghasts, Jesse kills the Giant Ghast by stabbing it through their head. Unfortunately, they lost track of Xara in the process until they find her trying to take out another Ghast. Jesse can do the following:
- Jesse can help Xara kill the Ghast. If they do, Xara will run off with Jesse and their group, where Xara can show her appreciation to Jesse while they run.
- However, Jesse can leave her to fight the Ghast alone. When they do, Xara startles the group by suddenly appearing next to them, and she makes her point clear by showing resent to them.
- "Everyone knows there's nothing under the bedrock except...nothing! And also certain death."
- —Jack doubting Xara once everyone reaches the diamond tower. src
The group continues to rush through the maze until they reach the diamond tower. Along the way, she mentions a third Admin named Fred, who died when he and Xara attempted to fight Romeo for control over their world (Xara and Fred lost). When they reach the tower, it appears to be short. Confused, Petra and Jack claim that the tower is useless because it does not take anyone up. It turns out that the tower takes people down, way below the bedrock, where she claims that the key to defeating Romeo (which Fred discovered) lies under.
Unfortunately for Xara, Petra and Jack believe that there is nothing below the bedrock, Jack being even more suspicious having been fooled by Romeo when he pretended to be his friend Vos in the previous episode. He threatens to not go along with Xara, but upon the arrival of more monsters from the maze he turns back and the whole group jumps down the tower. As they do, another monster, which appears to be a Giant Enderman, arrives not far off from the premises and shrieks.
- "Run, run, run Jesse... as fast as you can. Hahahahaha!"
- —The Admin (disguised as Jesse) cackling after the ninja disappears src
The scene depicts the Admin (disguised as Jesse and with the gauntlet) in the Order Hall rambling about preventing the real Jesse and their gang from blowing his cover. He then throws the Amulet to a ninja standing in front of him. The Admin instructs the ninja to make sure the real Jesse and their gang in still in the Underneath, to which the ninja disappears via smoke bomb afterwards in search of the aforementioned people. As the Admin cackles at the end, his eyes glow a bright yellow and red.
There are certain choices in this episode that can be affected by previous choices.
- The Admin's champion is different depending on who Jesse sent to reset the Clock.
- Did you agree to work for the Warden in the Sunshine Institute?
- Did you shear Geoff the Mooshroom in the Mush Room?
- Did you convince Stella to help you escape and be on your side?
- Did you leave Nurm or Lluna behind in Xara's cell?
- Did you stick together with Xara while escaping?