The Pirate spins a classic Space Western style tale. [Episode spoiler]People of a young but thriving outpost are threatened by lawless brigands. The local ruler appeals to the far-off authorities to help, but through a combination of limited resources, bureaucratic process, and disguised loyalties they decline to help. Din Djarin inspires the standoffish Mandalorian covert he's with to help. Acting with a combination of duty to repay debts owed and aspiration to build a better future for their people, they ride to the rescue. A bad-ass gunfight sequence follows. The bandits are routed and the heroes are feted. This Is The Way.
The plotting in this episode lays out a map for what we can expect to drive the rest of the season. It's a few episodes late but better than never. Baby Yoda, the excessively cute McGuffin of season 1, is now just an excessively cute minor character. The story here is about the Mandalorians. The Armorer has a vision to reunite their scattered tribes. She challenges Bo-Katan to make it her mission; Bo-Katan gladly accepts. Din Djarin pledges his service to her and the cause.
Meanwhile, it's telegraphed that an old enemy will soon come back. Scenery-chewing Imperial bad guy Moff Gideon disappeared after being taken prisoner by the Republic. In a tag ending Captain Teva finds his prisoner transport ship, shot to shreds. The Republic officers inside are all dead; Gideon is gone. And evidence in the ship indicates... Mandalorians may have sprung him!