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During the fight outside the cantina, Gideon shoots his blaster on the “eweb” power block, making it explode and send the nearby Mando to the ground. This makes the team retreat inside and plans to escape underground through the sewer grate. Gideon sends a fire-trooper to burn them out of the building, and in a critical moment, Baby Yoda shines with his tiny little hands stop the fire and throw it back at the trooper, saving the powerless team at the moment.
IG-11 goes to take off Mando’s helmet to heal him, then the two rejoin the other at the Mandalorian Covert, only to find a heaping pile of Mandalorian helmets and the place deserted. The only survivor - the Armorer shows up and tells them that Imperials came here and wiped them all out. The Armorer briefly explains to Mando (his real name is Din at this point) about Baby Yoda’s origin and Mando’s destiny to reunite the Child with his own kind - a tribe of sorcerers known as Jedi. She gives Mando his very first jetpack and his signet—a Mudhorn.
They emerge from the lava tunnel only to see Moff Gideon’s TIE Fighter fast-approaching. Mando straps the jetpack to his back, goes off the sky to reach the flying Fighter, manages to stick an explosive to the arm of the TIE Fighter’s wing before falling off. The Fighter explodes but Gideon is still alive in the crash.