At the precinct, Det. Lance gets a phone delivered to him. A few seconds later, he recieves a blocked call. It's from Arrow. Arrow says he needs one of the arrows from Hunt's murder to track down the real killer.
Meanwhile, Walter meets with Doug Miller. He tells Miller he's worried the vigilante might go after him, but Miller stays mum.
While Walter is trying to figure out what reason the vigilante would have to go after Miller, Oliver and Thea grab a bite together. Oliver wants to know why the Queens aren't hosting an annual Christmas party, and Thea tells him the family stopped celebrating after Oliver and his father disappeared. Later at home, Oliver tells his family he's decided to throw this year's holiday party. Walter tells Oliver he's a good man, which cues another flashback to the island.
On the island, Edward calls Oliver a good man. Then he tells him that the island is a prison — literally. Apparently, the Chinese military used a the island as penitentiary for extremely dangerous criminals. The jail was eventually shutdown, though two of the most dangerous criminals managed to escape. Edward was sent to the island to bring them back. He tells Oliver that one of the criminals was the masked man who tortured him, a.k.a. Deathstroke, while the other was none other than Oliver's mentor.
Back in Starling City, Moira meets with Merlyn Sr., who tells her that Doug Miller came to visit him after being interrogated by Walter. Merlyn Sr. tells Moira that something must be done about Walter, and she promises to handle the situation. Merlyn Sr. isn't convinced, and says it might be time to bring their "associate" in to take care of matters.
Meanwhile, Arrow 2.0 takes down another target. The police commissioner wants to pin the murder on the real Arrow because he doesn't want the public to know there are two vigilantes on the loose. Det. Lance refuses to go along with the idea, and the commissioner tells him he's off the case. Lance decides to help Arrow catch the killer by pointing him to the evidence.
NEXT: Oliver asks Felicity for help...