The second episode of The Penguin takes us into Arkham Asylum where Sofia Falcone meets with her brother Alberto. However, his finger is missing and he's then shot dead; the whole thing is a hallucination she's suffering during an intense therapy session with psychiatrist Dr. Julian Rish.
Oz, meanwhile, meets with Sal Maroni in prison and is faced with the threat of being exposed. Since Alberto's death, Luca, Carmine's brother, has been named head of the family and Oz plans to steal their Drops and sell them on Sal's behalf.
However, the plan goes wrong and he's forced to be on the truck that's going to be attacked by Sal's men; the villain gets out of the way in time and kills some of his fellow crooks in the process. Sal gets his Drops, though, so it's not all bad.
The Falcones later meet and Sofia, livid that her brother's killer still hasn't been found, is told to back down by Luca (who has, at least, figured out there's someone on the inside). Oz tries to get Sofia on side but she's not interested; incensed, he rants to Victor that he wants her and Alberto's shipment because that will give him the power he desires.
A news report reveals that crime has spiked by 42% since The Riddler's attack. There's no mention of Batman, though we also learn that Sofia allegedly killed at least 7 women before she was eventually exonerated.
She enlists a cop addicted to Drops to help figure out who murdered Alberto and, interestingly, Crown Point is referred to as "No Man's Land" at one stage, a possible nod to the comics and a hint at what might be on the way in The Batman - Part II.
The Pengun's girl, Eve Karlo, figures out he killed Alberto and that Oz now plans to frame Johnny Viti. His mom's dementia is also worsening, though she manages to pressure him to make something of himself (we also learn his brothers are dead).
Shortly before Alberto's wake, Sofia wakes up from another nightmare and has scratched her throat and chest. People are demanding she be sent back to Arkham but there's some good news when that corrupt cop delivers one of Sal's men from the robbery.
Oz attempts to give Luca the photos of Johnny having sex with his wife, but he's ignored and instead delivers them to Sal's wife when threatened because they're so angry their man has been taken from the hospital by that cop.
Forced to pivot, Oz gets Vic to plant jewels from Carmine's safe in Johnny's car but that also fails and Oz kills the guy in the basement before he can talk and reveal him as the inside man. Sofia and Luca find the goon's body and everyone from the robbery is searched. Faking a confrontation with Johnny, Oz plants the knife on Sofia's bodyguard, framing him for Alberto's death.
Luca shoots the guy before Sofia can and decides she should be sent to Italy where she can't be a problem.
Oz, furious at how things played out makes Vic lie in the grave they've been ordered to dig and wonders if he's cut out for this life. It's then that Sofia calls and, having retrieved the diamonds Oz later planted in the bodyguard's apartment, she reveals her plan to flood Gotham with a new, far more powerful drug...and recruits Oz to help her take Luca down.
Two episodes of The Penguin are now streaming on Max.