Howard confides to Furillo in the men's room how he had performance anxiety with Grace Gardiner due to her usage of microwave-heated body lotion. Bates and Coffey bring in some members of the Arrowhead gang, and Furillo tells Ray that they're in for some major trouble with Hudson trying to annex other gangs. Meanwhile, Renko and Hill negotiate with an angry old-timer, who Hill warns still has pent-up rage. Belker talks with his Black Arrow informant, who warns him that the time to act is now. Belker tells him to punch him, which he does, when Belker sees two other gang members approaching. The informant plays it off as Belker being a wino looking for change.
Belker warns Furillo that he doesn't like the feel of the way the sting is going. Fay stops by and invites Phil and Furillo to her wedding reception, and the detective from another precinct, accused of soliciting sex from a topless waitress, approaches Furillo about the scrutiny now placed on his every move, including from his wife. Davenport seeks Furillo's advice on her client.
Henry gets involved in a shooting with the same angry man that Renko and Hill encountered earlier in the day. Belker's uneasy when his witness doesn't show. Hudson does in the wrong person, then figures out who the real squealer was all along.
Belker blames Furillo for his connection getting killed. Hudson is arrested – with this lawyer in bed with him – and he gets arrested on minor charges for the drugs she has in her purse. Goldblume comes through with the hostage situation, convincing the man to give himself up. When he sees Furillo later at the station, he admits that he no longer has a wife and kids to go home to, and Furillo invites him to crash at his place after they go for a beer.