Welcome back to the Arrowverse!! Reminders this has spoilers for season 1 and 2 of Arrow and season 1 of the Flash.
We open the season with the team stopping a truck of RPGs and we see our first look at Roy's brand new red leather getup. Oliver and Felicity are acting very close after the admission of Oliver’s feelings at the end of last season. Though the admission came as a way to trap Slade Wilson, they seem to know that it was sincere. Oliver makes an arrowhead necklace for Diggle and Lyla’s baby girl, showing how much he cares for his team and their families. Diggle says Oliver should tell Felicity how he feels for real this time. Lance is walking with a cane and doesn’t do fieldwork anymore, but he is captain now. Also Lance disbands the vigilante task force for all the work the Arrow has done. A new dude is on the scene with a new strain of vertigo, it makes you see your greatest fear. Oliver asks Felicity on a dinner date. Felicity works at a Best Buy knock off, where she meets Ray. Ray is looking for something that he plans to use to hack into a private guarded server. Oliver upgraded his bow! It now folds up and can fit in his fist. Very helpful for keeping it on him in secret and putting it away so he can blend into a crowd if needed. Oliver and Felicity are nervous messes on their date. Oliver talks about how Felicity was the first person he could trust after the island. Which is very sweet and you can see how sincere he is on his face. The new dude blows up the restaurant the date was taking place. Lance is still finding excuses to get in the field with the Arrow. The dude, who has started calling himself Vertigo, injects Oliver with the drug. Oliver sees himself, which he takes as being afraid of being Oliver Queen and the Arrow.
Oliver is trying to get control of Queen Consolidated back. He plans to make a plea to the board with the basis being it's in his family and he sees them as such. Another bidder also makes a plea. This was by Ray Palmer Turns out Ray was trying to hack into the QC servers to get their raw data which he uses to back up his new plan for rebranding the city as well as the company. Ray wins the bid for the Queen Consolidated. Oliver doesn’t want Diggle in the field since he is a new father. Diggle is initially quite angry at Oliver for benching him, until his baby girl is born. As soon as Diggle looks at her he knows he would not be able to go in the field and risk her losing him. Oliver is retreating back to a soldier like attitude in light of the bombing of the restaurant and his revelation with the new vertigo. Sara shows up to help fight the bad guys. Due to the wiring being colored the same they have to freeze a bomb that Vertigo was using to blow up an arena that the last three crime bosses not caught by the Arrow were in. Felicity tells Oliver to stop dangling maybes with their relationship and she ends anything romantic with Oliver. Sara and Laurel have a quick conversation before Sara leaves via a rooftop. A man’s voice is heard yelling Sara’s name, she turns and is murdered with three arrows to the chest. She falls off right in front of Laurel. Laurel takes Sara’s body to the Arrowcave. Oliver checks her body and finds Sara to be dead and beyond saving. Laurel doesn’t want to tell her dad, she’s afraid it will kill him. Oliver goes to the site to look for clues and finds footprints of Sara and her murderer.
More people are dropping from this new archer. Oliver says the only people who kill like this are members of the League of Assigns, but they would never kill one of their own. Oliver decides to check on Thea with this new threat in town. Thea is not answering any of Oliver’s calls or texts. Ray Palmer buys the operating business for the stores Felicity works at, so that she is working for him. He offers her a job at Queen Consolidated again, or she can keep working at the best buy knockoff. She quits and denies all offers. All the other murders are connected to an oil deal. Oliver finds and captures the archer but he wasn’t the one to kill Sara, he was in a different city at the time. The team buries Sara at her gravesite from the first time she “died”. Diggle and Lyla are naming their baby Sara in memory. Felicity decides to go work for Ray at Queen Consolidated. Thea is training with Merlyn. She seems to be doing very well in just a few months.
Oliver tracks down Thea to discover she is not in Italy like she claims, but is in Corto Maltese. He and Roy get plane tickets to fly down and hopefully bring her home. Diggle plans on stay in Starling and mentions to Lyla that he is happy to be spending some quality time with Sara, and mentions he is even looking forward to changing diapers. Lyla says she is looking forward to seeing that too. Lyla asked John to check up on an agent that’s been silent for a while. Ray gives Felicity the CEO office and an Executive Assistant in her new position as Vice President. When Diggle finds the man Lyla told him about, the guy tells him a database of all Argus agents and their families has been stolen and there is a sale coming. Turns out the guy is the one who stole it, and he tries to kill Diggle when Diggle finds out. Diggle calls Felicity for help tracking down who this guy is and tracking his phone. Oliver decides to tell Thea everything since the lies are what drove her away. She decides to return to Starling with him with the promise that no more secrets will be between them.
Nyssa is back in Starling looking for Sara. Nyssa tells Oliver that Merlyn is alive and that Sara was in Starling to confirm he was there. She and Oliver find Merlyn staying in a monastery. Oliver marks Merlyn with a tracking device so they can find him and talk. They discuss Sara and why he’s there, Merlyn says he’s in town for Thea. He doesn’t tell Oliver that he has been training her but makes it seem like he has been watching from a distance. Merlyn also swears on Thea’s life that he did not kill Sara. Nyssa takes Thea to lure out Merlyn. Oliver gets there first and all three fight. Merlyn convinces Oliver that he didn’t kill Sara and Oliver gets Nyssa to leave him alive. Nyssa goes home but she swears she will kill Merlyn.
Felicity's mom shows up in Starling for a visit. Thea buys an apartment with Merlyn’s money. She tells Oliver that the money is from Merlyn’s estate since she is his last living relative. A city wide blackout is causing trouble. A message from “Brother Eye'' comes over the airways that takes credit for the blackout and promises more trouble. Brother Eye says they are going to empty the banks next, so a bunch of people start rushing the banks to empty the vaults and take their money before it can be stolen. Laurel as acting district attorney sends out a riot squad to keep them out of the banks. This causes the group of people to become a riot, which Lance points out to Laurel. That she sending in extra police elevated the violence. Felicity finds out that the virus that they are using is hers from five years ago that she, her boyfriend, and his roommate used for Hacktivism. Felicity thought her boyfriend died, that he committed suicide. Turns out the NSA hired him and made a story so no one would question where he went. He is the one heading the Brother Eye group. Felicity and her mom are kidnapped so the boyfriend could make Felicity help them. They need her to reroute trucks from the treasury full of money from the banks to his hideout. Thanks to a smart watch her mom is wearing Felicity is able to contact Oliver to help free them. Thea offers that Oliver move in with her. Roy hasn’t been sleeping well, we end the episode seeing he’s been having nightmares of killing Sara.
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