Regina has turned double agent in Once Upon A Time. She’s gone undercover to try and find out what Maleficent, Cruella De Vil and Ursula are planning. The three villains wonder if Regina is still evil and put her through some tests. They finally believe, for the most part, that she’s just been pretending to be good this whole time.
When Emma finds out, she worries since it’s been a while since Regina checked in with David and Mary Margaret. After she does check in, Regina says she doesn’t know much but she does believe the three villains are trying to take away the heroes’ happy endings; they’re looking for the author of the storybook, as well.
In a flashback, we see how Regina met Maleficent. She was kind of a big fan of hers and when Rumpelstiltskin sends her to Maleficent, Regina inspires her to get out of her dark funk. Maleficent finds her way back, and the way to turn back into a dragon; she decides to exact her revenge on Stefan and Briar Rose when she finds out Aurora, their daughter, is to be married.
Maleficent puts Aurora in a deep sleep, after she tangles with Stefan and turns into a dragon, and decides what she did to Aurora is a better revenge then killing Stefan and Briar Rose.
This inspires Regina to start her true revenge on Snow White — taking away what she loves. Her first victim is Snow White’s precious horse whom she puts into the same deep sleep Maleficent did to Aurora.
Back in Storybrooke, Hook goes to see Belle and tells her he fears Gold might return. He says they need to get the dagger and he needs to hide it again. They find the dagger and Belle gives it to Hook, but it isn’t Hook, it’s Gold disguised as him. Gold now has the dagger back and all his power.
The three villains and Regina go in search of Pinocchio saying he’s the key to the storybook. Regina is hesitant to help, but she knows she must maintain her cover. They kidnap the boy and take him to Gold’s cabin. It’s in the cabin that Regina finds out Gold is back in town. Gold turns Pinocchio back into the man he used to be, August, with plans to question the man about the storybook.