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Still traveling through the Fire Nation in disguise, our heroes take shelter in a forest for the night; however, a kindly old woman discovers them, as she knows of the mysterious disappearances in the woods, and doesn't want anything to happen to the young group. Something seems decidedly odd about the lady (Hama), however, and the Gang begins to investigate- and Hama's dark secret is revealed. She's from the Southern Water Tribe.
She explains how she was a little girl when the war was relatively young, and she spent her early life in the Southern Water tribe as a warrior. The Fire Nation had been fearful of the Avatar's rebirth into the Water Tribes, however, so one by one they captured the Water Benders, taking them away, leaving them in horrible Prisoner Of War camps, with virtually no water to bend or space to move. Hama broke out years ago, and has spent the rest of her life trying to forget her painful imprisonment.
Gleeful at having met water benders from the same tribe, Hama and Katara immediately bond, and Hama accepts to teach Katara, as she knows how dangerous is can be for a Waterbender in strange lands. She has a variety of skills to share - the ability to form water out of vapour, or suck it out of plants.
Something is still out in the woods, making people disappear, and the rest of the Gang investigates what must surely be spiritual phenomenon, even though there seems to be nothing to upset the spirits in such a beautiful town. However, they come across a hidden cave in the woods, where Fire Nation citizens have been imprisoned - controlled by their own bodies at the full moon, like some puppetmaster was controlling them. The gang realizes that Hama has discovered the darkest art of Bloodbending, controlling the fluids in another living thing, and has been using her abilities to wreak revenge on the nation which imprisoned her. But how are you supposed to fight someone who can control your body?
- Apologetic Attacker: Katara, Sokka and Aang when Hama uses bloodbending to control the boys.
- Being Tortured Makes You Evil
- Calling Your Attacks: a rare Justified Trope in that neither Sokka nor Aang actually want to hit Katara.
- Die or Fly: Semi-straight example - Katara has to either learn bloodbending or watch as Hama uses it to make Sokka kill Aang.
- The Doll Episode
- Downer Ending: The Bad Guy Wins.
- Evil Counterpart: Hama is one for Katara.
- Evil Old Folks
- He Who Fights Monsters: Hama falls prey to this.
- The Jailer: Hama
- Kubrick Stare: Hama pulls one off after she is revealed as the person behind the mysterious disappearances.
- Marionette Motion: Anyone under the influence of bloodbending.
- Misunderstood Loner with a Heart of Gold: Subverted with Hama
- My Kung Fu Is Stronger Than Yours: See quote at the top.
- Nice Job Breaking It, Hero: Katara figured out on her own that Hama was the one causing the disappearances and overpowers Hama's bloodbending with her own skills and power. But Aang and Sokka don't know this and think they have to save her from Hama - and unlike Katara, they can't resist the bloodbending. Que Hama using them as puppets and Katara needing to use bloodbending to save them.
- Owl Be Damned: As if to hammer home the whole Halloween episode theme, there's a shot of a cat-owl in a tree.
- People Puppets / The Power of Blood: Bloodbending.
- Properly Paranoid: Sokka of Hama.
- Your Approval Fills Me with Shame: Katara feels this way when Hama congratulates her on becoming a bloodbender.