Plot

News of Ganesh Gaitonde's death activates the political forces in Mumbai. The Internal tension in the police department results in Sartaj Singh's suspension, forcing him to begin his own investigation.

The episode is named after 'Halahala', an extremely toxic poison that comes out as a by-product of an attempt by Devas and Asuras to extract Amrit, the nectar for eternal life. Constable Katekar (Jitendra Joshi) is loyal to Sartaj and performs all odd jobs for him.

With the death of Ganesh Gaitonde starts a 25-day countdown that carries on throughout the length of the show. Its day 24. Parulkar assigns the case to Majid, over Sartaj's protests. Sacred Games now brings Bollywood to the fold, introducing an up and coming actress Zoya Mirza who seems to have some connection with Gaitonde; seeing the news of the gangster's death, she threatens someone that Jojo (Surveen Chawla) is uncontactable. She says if her name is exposed, then she will expose everyone else. She wants to get her file from the murdered talent manager Jojo (the body of the girl who was found in Ganesh's hideout) else she would bring everyone down with her.

Now the entry of Anjali Mathur (Radhika Apte), a Research & Analysis Wing (RAW) agent investigating the case. Sartaj Singh is suspended by Deputy Commissioner of Police Parulkar for not cooperating with him in an investigation over misuse of power (Parulkar had encountered a surrendering youth and wanted Sartaj to lie, which he refused). Anjali wants to talk to anyone from Gaitonde's old gang.

Home minister Bipin Bhosale (Girish Kulkarni) is in touch with Parulkar re: Ganesh's death. Parulkar tells Bipin that Ganesh took Trivedi's name before killing himself. Deepak "Bunty" Shinde (Jatin Sarna) is a producer who used to work in Ganesh's gang, back when he operated out of Mumbai. Parulkar gets Majid to arrest him.

Sartaj says that the murdered talent manager in Gaitonde's location was shot in the face, point blank. This is only done when someone is very angry. She was either Gaitonde's friend or enemy. Sartaj returns to Gaitonde's location and steals the key that he saw in the dead woman's hand. Meanwhile Anjali's boss doesn't agree with her threat perception to Mumbai, as she no proof and there is zero threat intel from any other source. There is no foreign currency, no links to ISI, nothing. Anjali is not willing to give up. Sartaj finds the car, to which the keys belong. He tracks the registration number to an address, where he finds a hidden room, with wall to wall cash

The suspended Sartaj Singh joins forces with Anjali Mathur and discovers that the murdered talent manager was keeping fake currency supplied by Pakistan's ISI (a case Mathur had been investigating at RAW), and had also been escorting Bollywood and TV actresses to Gaitonde. Meanwhile Anjali finds Mathu alive (she had got his number from Gaitonde's phone while she was tracking him and used the number to track Mathu's location), but shot in the stomach. Mathu was shown to be attacked by an unknown gunman at the same time Sartaj was talking to Gaitonde.

Intertwined in between is the story of Gaitonde's emergence as the mega gangster of slums in 1980-1990s' Bombay. Ganesh starts a gang, with Mathu, Bada Badariya (Danish Pandor) and Chota Badariya (Anil Charanjeet). He uses the Gold from Salim Kaka to fund his gang. Gaitonde creates a base in Kailashpada. He also helps Kanta Bai (Shalini Vatsa) to expand her illicit liquor business and she in turn helps Ganesh with the secrets of Gopalmath. Kanta reveals the Gangster Momim does Rs 70 lakhs of business every day by controlling the trash of Gopalmath. Ganesh has his eye on this pie. Ganesh wants to buy the Municipal land that hosts the garbage dump. But the municipal officer, whom Ganesh bribed, squeals to Momin, who beats up Ganesh.

Ganesh has money, but no respect. He is not allowed entry into the rich bars of town. Outside one such bar Gaitonde sees Sulieman Isa for the first time, along with his mistress. Gaitonde is seen attempting to gather power and gets his first visit from Parulkar, a sub-inspector back then. The first FIR against Gaitonde is registered at the Kailashpada Police Station.

Ganesh kills the municipality officer Talpade & Momin and sets the garbage dump ablaze, reducing his 20 Cr business to nothing overnight. Gaitonde announces himself as the new don of Kailashpada.