'House of the Dragon' Season 3 Episode 7 Explained: What Happened to Sheepstealer & Sunfyre?
This episode marks a crucial step toward the season's finale.
The penultimate episode of House of the Dragon Season 3 significantly ratchets up the tension ahead of the finale. Rhaenyra feels her position is once again precarious, and the Blacks begin to lose control of the situation. Meanwhile, the Greens suddenly find themselves in a stronger position.
The seventh episode features a resurrection from the dead, an unexpected triumph for Aegon, a dragon battle, and yet another betrayal that deals a heavy blow to Rhaenyra.
The Situation in King's Landing Is Still Unstable

Rhaenyra visits Helaena's chambers in an attempt to find out if her prophetic dreams have revealed anything valuable about the war, but Helaena refuses to answer her questions.
At the Small Council meeting, the Blacks are counting their chickens before they hatch: Rhaenyra promises Harrenhal to Lady Sabitha Frey while Torrhen Manderly reports on popular unrest fueled by a lack of funds.
Meanwhile, Daemon is away for "personal reasons," and Mysaria turns Rhaenyra against him.
Alicent Arrived at Harrenhal and Met With Aemond
Alicent arrives at Harrenhal with Ser Adrian Redfort, who was tasked with killing Aemond, but instead became his victim.
Alicent quickly realizes that her son is gripped by strange delusions and under the influence of Alys Rivers. Acting on a plan to eliminate Aemond, she poisons his drink and flees the castle. However, Aemond seeks Alys' help and survives.
Rhaenyra Finally Discovered the Truth About the Rider of the Sheepstealer
Daemon kept from Rhaenyra the fact that the rider of Sheepstealer, which had killed her son, Jacaerys, at the Battle of the Gullet, was his daughter, Rhaena. Daemon found her in the Vale of Arryn and at that moment, Rhaenyra arrived on Syrax, accompanied by Addam of Hull on Seasmoke.
The confrontation escalates into a battle between dragons. Syrax, Seasmoke, and Caraxes fight Sheepstealer, which retreats severely wounded.
Aegon Receives a Sign From Above

Aegon, Larys Strong, and Tyland Lannister are on their way to the port, planning to flee to Essos, when Lord Mooton's vanguard blocks their path. Larys breaks away from the group while Aegon decides to stand his ground with dignity rather than flee.
Aegon and Tyland brace themselves for death when Sunfyre, Aegon's dragon, emerges from the woods. The dragon is alive, albeit severely maimed. Overjoyed by this "divine mercy," Aegon commands the dragon to destroy the enemy detachment.
Ormund Continues to Weave Intrigues at Tumbleton
The Northern army advances on Tumbleton. Meanwhile, Ormund Hightower holds Corlys Velaryon captive and sends his severed finger, still bearing his ring, to Driftmark.
Meanwhile, Ulf the White conspires with Ormund and receives a promise that he will become Lord of Driftmark. Taking advantage of Ulf's resentment toward Daemon, Ormund wins Ulf and his dragon, Silverwing, over to the Greens' side.