The Reign of Terror (Italian: Narkodam, il regno del terrore) is the fourth episode of the third season (The Two Tigers) and the fifty-sixth overall episode of the animated series, Sandokan.
On one of the beaches in Tavoy, Sandokan meets Kim. He reassures him about Morugan since the boy witnessed the Rajah’s guards leading them away in shackles. In order to avoid being arrested, Sandokan himself has to mingle with the fishermen of pearls, the greatest trade object in Tavoy and great business for Narkodam considering that the far-sighted Anambas is dead.
Meanwhile, Suyodhana has arrived at Narkodam’s palace, incarnated as a bird, and he spies on the Rajah and his stepmother Malyssa with whom he shares his throne. The two of them are discussing how to kill Bandar, their worst enemy. Malyssa wants to poison him with one of her deadly potions prepared with the help of Amari, her assistant; whereas Narkodam wants to feed him to the beasts.
All Suyodhana is interested in is the dagger and he has already glimpsed at Anambas’s sword hanging on the wall. There’s a ruby set in its hilt and underneath it surely holds the instructions to reach the hiding-place of the magical dagger. As time goes by, Morugan and Bandar realize that their time has come and that falling into Malyssa’s clutches is certainly not a pleasant affair. Marianne and her comrades have been captured by the pirates. When these discover the reason for their journey, they want to execute them since they believe that Sandokan and Morugan sold Bandar to the Rajah. Marianne persuades them to change their mind and they come to an agreement. She goes to the palace in search of Sandokan and Bandar, leaving Yanez and Kammamuri behind as hostages. Randi accompanies her, considering Narkodam has a weak spot for ferocious animals.
Sandokan manages to slip into the palace, thanks to the help of some fishermen. There he discovers the place where Morugan and Bandar are kept prisoners, but for the time being it is impossible for him to set them free. In the meanwhile, Malyssa is in the tower, along with Amari, experimenting a new poison when the cries of a bird attract their attention. She opens the window to set it free, but a green flash of light illuminates the old woman’s gaze. Malyssa is under the spell of Suyodhana and she rushes to grab the sword and look for the inscription hidden under the robe. But she doesn’t find it and asks for Narkodam’s help. He tells her that his father had a dagger that he gave to Aruna for his thirteenth birthday. Aruna died by the hand of Malyssa herself and Amari buried him along with his dagger.
The following day Marianne is led to court and is about to be executed, but the Rajah saves her life since he has discovered that she has a tiger to sell him. In the palace dungeons, Sandokan finally manages to find a passage towards the prison. He frees Morugan and Bandar and together they head towards the hallway, which leads them to the beach. But unfortunately the mice have eaten the pearls that Sandokan had strewn about to find their way back. They come face-to-face with the guards, manage to defeat them and flee. But when Sandokan turns around, all he can see is Bandar. Morugan is probably still kept prisoner. Also, Malyssa manages to discover the tomb of Aruna, Anambas’ firstborn child, but it’s empty. Where are the dagger and Aruna?