Red can't find her cloak. Gold doesn't have it, either. She's afraid it didn't come over with the curse. Charming insists he and Snow both know and trust Red. She doesn't have to do this. Um, as acting sheriff, shouldn't he be grateful she's trying to err on the side of caution? It's not like she's trying to kill herself. She's going to spend an uncomfortable night in service of not gobbling up her fellow townsfolk. Oi, Charming, shouldn't you offer up the Storybrooke jail cell as an alternative? They don't listen. They never, ever listen. I've got to get me some fairy dust. Granny's face is grim as she shuts in Red, and we flash back to the...
Enchanted Past. Night. Snow and Red run through the woods and right into members of the Queen's Guard. They manage to disarm the guards and knock them out, but as they run away, Snow stops in her tracks when she spots the wanted poster featuring her face. She rips it down and follows after her friend. As more guards approach, Red pulls down Snow and they hide.
Once the threat has passed, Snow pulls out the poster and complains about Regina's relentless pursuit. Red's probably tired of hearing about it, because she takes to inspecting her cloak, and finds it is torn. She wants Snow to get away from her, in case the tear interferes with the cloaks protective magic. Snow isn't worried about a tear, but Red says they can't risk it. For Snow's sake, they must split up.
They agree to meet in the morning by the stream. Red proposes that they can then find a place for both of them. "Maybe a nice cabin in the woods." I missed the credits, but according to IMDB, Goldberg and Chambliss wrote this episode. Still, I can't help but wonder if that shout out to Joss Whedon and Drew Goddard originated with Jane Espenson. Oh, wait, Chambliss worked on Dollhouse. I always forget that, having shut off Dollhouse after the first ten minutes of the pilot, and never giving it a backward glance. Yes, Whedon fans, in this particular instance only (so far), I am the reason we can't have nice things. (I just didn't think Dollhouse was a nice thing. Grumble grumble. Issues.)
Anyhow, Red is touched that Snow is bound and determined to stand by her, even though she saw what Red did as a wolf. Snow says she knows that's not who she truly is. "We're in this together, Red." She pulls up Red's hood and sends her on her way, but someone is watching from the shadows. When he sees Red, his eyes glow golden.