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Demiurge manipulates the Holy Kingdom into trading with the Sorcerous Kingdom. Phillip becomes the new Baron Montserrat, but his farmers cannot farm as much food as Ainz’s undead, and his finances suffer when Ainz gives food to the Holy Kingdom for free, so they stop buying from Phillip.
One of Ainz’s food deliveries is stolen, and the theft is traced back to Phillip after Albedo and Ainz interrogate Hilma. Hilma is surprised when Ainz blames himself instead of her and becomes devoted to him. Seeing the effect Ainz had on Hilma, Phillip’s allies decide to become loyal to Ainz too.
Albedo explains to the Floor Guardians that Phillip was supposed to incite the commoners into rebelling against the nobility; Ainz would then peacefully absorb Re-Estize into the Sorcerous Kingdom, but Phillip provoked war instead. Ainz agrees an example is required but privately is not happy his plan failed. Ainz sends a letter to the Re-Estize king, warning that due to the theft of the food supplies, they are now at war with Ainz, the dwarves, the dragons, Baharuth Empire, Holy Kingdom, and his newest ally Faceless One. The king, Zanac, and his ministers are trapped between fighting a war they cannot win or blaming everything on Phillip and hoping Ainz shows mercy. Albedo arrives and is surprised when the king offers his head in exchange for understanding for his kingdom.