House of the Dragon Season 3's penultimate episode dropped this week, and it sets up Rhaenyra's ultimate downfall in its last act. "The Dragon in Winter" further shows us the fragility of Rhaenyra's new reign, as the last act of this episode reveals Ormund's trump card against Rhaenyra. Hint: it's not Corlys Velaryon, who is confirmed to be alive.Meanwhile, at the Red Keep, things are not great, as Rhaenyra's council is not doing that well, and Mysaria tries to sway the queen on her side. The official logline of this House of the Dragon Season 3 episode reads:"Torn between Mysaria and Daemon's visions for her reign, Rhaenyra grows desperate for a sign that she will prevail."House of the Dragon Season 3 Episode 7 recap: View this post on Instagram Instagram PostThis House of the Dragon Season 3 episode begins with Helaena Targaryen dreaming about being out in the open. She wakes up to Rhaenyra asking her about the visions, but this interrogation goes nowhere. Then, the episode cuts to Aemond practicing at Harrenhal as Alicent walks in and informs him about escaping the Red Keep.The two get intimate, but soon it is revealed that it's not Alicent, but Alys, who is with Aemond. This spooks Aemond, and he walks out when he comes across the real Alicent. If you remember, Alicent was ordered by Rhaenyra in last week's episode of House of the Dragon Season 3 to head to Harrenhal along with one of the queen's guards, who would kill Aemond.Aemond is initially skeptical but subsequently believes that his mother is at Harrenhal. He executes the guard accompanying Alicent, feigning loyalty to her. Aemond tells Alicent that there are secrets in Harrenhal that he doesn't want a stranger to learn. Then, Alicent, Aemond, and Alys are having dinner when the witch and the Targaryen prince bicker like a couple.Alys chides Aemond that she doesn't believe Alicent, which is confirmed later in the episode as he comes to the witch seeking help. Alicent had poisoned his drink as we see her leave Harrenhal, believing that she had accomplished the mission Rhaenyra assigned her. As that happens, Addam and Baela are still looking for Sheepstealer when they find him with an unidentifiable rider.The two barge into a contentious council meeting and relay this shocking information to Rhaenyra. Soon, Rhaenyra, Addam, and Baela fly on their respective dragons to fight Sheepstealer and his rider. As that happens, Daemon and Caraxes locate Sheepstealer and Rhaena.Rhaena learned about Aemond's dragon Vhagar flying over a market town nearby, and she decides to investigate to redeem herself in Rhaenyra's eyes. Daemon offers to help Rhaena locate Vhagar, as Rhaenyra, Addam, and Baela fly in. Rhaenyra finally learns who Sheepstealer's real rider was all along, but as soon as Addam catches Rhaena, Sheepstealer goes wild.This results in Sheepstealer fighting Syrax, Seasmoke, Moondancer, and Caraxes. Daemon asks the others to flee, as he and Caraxes manage to defeat Sheepstealer. Rhaenyra takes Rhaena on her dragon Syrax, and upon reaching King's Landing, she orders her guards to take Rhaena to a chamber and to confine her to that room.Daemon tries to convince Rhaenyra, but she has none of it. Later that night, she goes to Mysaria, where the latter tells the queen that all of her obstacles will be removed, ushering in a golden era of her rule. Soon, the Mistress of Whisperers kisses the queen, and the two engage in physical intimacy.As the situation in King's Landing seems tenuous, Ormund is nonchalant in Tumbleton even though the Winter Wolves and Oscar Tully's forces are approaching the market town. Ormund is holding Corlys Velaryon hostage and tries to convince him to join the Hightower side. But it seems Corlys isn't interested in joining them, and Ormund takes his soldiers to take the Sea Snake to his cell.But before The Hand is taken to his cell, Ormund has one of Corlys' fingers cut. Later, Alyn receives a box containing Corlys' finger, leaving the Sea Snake's fate up in the air. But we see Corlys in a prison cell in the House of the Dragon Season 3 finale preview, confirming that he is alive. Then, we see Ormund's trump card: Ulf, who is willing to betray Rhaenyra for Driftmark.But the most important development in this episode is Aegon's return in the Dance of Dragons. He, Larys, Tyland, and some mercenaries are passing through a forest when they come across people fleeing. They learn that troops loyal to Rhaenyra are looking for Tyland Lannister. The mercenaries flee, while Tyland chooses to remain, as Aegon chooses not to flee.Larys assures that he will inform everyone of Aegon's bravery before leaving. Later that night, the troops arrive as Aegon reveals himself to everyone. The soldiers are initially dismissive, but soon they are silenced, as Sunfyre appears behind Aegon and burns them down. This return is set to shake things up for next week's House of the Dragon Season 3 finale.House of the Dragon Season 3's penultimate episode is currently streaming on HBO Max.