Upon returning, they find that the kingdom has changed in many ways, with the jam fueling citizens to build faster than humanly possible. The scarecrow introduces himself as Pal Palych, and quickly wins over Vasilisa. That night, Gray Wolf overhears Pal Palych discussing something nefarious, but ends up being stuck in a chimney. Pal Palych meets with Ivan and uses dark magic to steal Ivan's body, leaving Ivan's soul in Vasilisa's toy monkey. Grey Wolf frees himself and tells who he thinks is Ivan about Pal Palych's plan, but Pal disposes of him using a trapdoor. Vasilisa falls for the new and improved Ivan, while the real Ivan tries multiple times to get her attention but fails.
