Chaghan’s entourage arrives at Hichetu for the Spring Hunt. Esen greets the Great Khan, apprehensive of the Khan’s reaction regarding the defeat at Yao River; however, the Khan is ambivalent. After greeting the Great Khan, they encounter Military Governor Bolud-Temur, Altan’s father. An ostentatious and condescending man, he insults each of them, angering Lord Wang in particular.

The Spring Hunt includes other festivities, such as various competitions. Ouyang duels General Zhang Shide, of the Yangzhou Zhang merchant family. Ouyang wins and goes on to challenge the Third Prince, the Great Khan’s only surviving son and heir. Disregarding typical deference to status, Ouyang defeats him and greets the Great Khan to receive his reward as competition victor. The Great Khan is unnerved by Ouyang’s ghosts and releases his weakened Mandate of Heaven, which is represented by blue flames.

During the feast later that evening, Ouyang and Zhang Shide drink together and discuss the Zhang merchant family’s successes. Meanwhile, Bolud introduces Altan to the Great Khan and presents him with a gift to gain his favor. However, the gift has been killed in its cage, a treasonous insult to the Great Khan. Enraged, the Great Khan seeks to punish them; only after the Empress, Bolud’s daughter and Altan’s sister, pleads for mercy does the Khan forgive Bolud and exile Altan.