Episode 37

Izuku wants an escape plan; Katsuki hits him and declares he will beat their teacher alone. A Texas Smash launched from the far side of the replica city rips the street apart and settles any argument about how serious this is. Katsuki blinds All Might with a Stun Grenade and charges, only to have his face caught in one hand. He answers with rapid explosions that accomplish nothing, gets driven into the pavement, and then collides with a retreating Izuku when the two move in opposite directions at once. Recovery Girl reads them plainly from the monitors: one boy wants only to win, the other only to flee.

Katsuki walks back in anyway, saying that winning is what being a hero means. All Might pins Izuku with a length of guard rail and sends Katsuki flying with a punch that leaves him retching. Izuku remembers watching a broadcast with him as children, All Might beating four villains at once, and Katsuki lit up by a hero who always found the way through. He admits to himself that he has always envied that hunger.

Told he has been fighting so recklessly out of resentment at Izuku's growth, Katsuki says he would sooner lose than team up. Izuku punches him away for it, drags him into a back alley, and reminds him of the first-grader who once stood up to two older boys because the greatest hero, in the end, always wins.

Katsuki relents. He leaps out to distract All Might as he passes the alley, Izuku slips behind and empties one of the grenadier bracers into him, and the two sprint for the gate on their Quirks. All Might is impressed, understanding that repairing this partnership is long work but treating the exam as its starting point. He catches them anyway, snaps both bracers, knees Katsuki into a building, and clubs him with Izuku's body before pinning them both.

Katsuki accepts that he was a fool to think he could take on the Symbol of Peace without risking anything. Maximum-output explosions blast All Might clear, and he throws Izuku toward the exit, where a New Hampshire Smash nearly breaks his back. Katsuki keeps blasting, wrecking his own arms with every shot, and is finally put down still biting All Might's hand and refusing to accept that his way cannot win. Izuku, moved by that refusal, lands a smash of his own, collects his partner, and carries them both through the gate. All Might observes that escaping alone was always available to Izuku, and that nothing stops him once he is saving someone.

Recovery Girl patches the two up while scolding All Might for how hard he swung, and he takes pride in students who smile at adversity. At the League of Villains bar, Kurogiri asks about Tomura's fixation on Izuku before Giran interrupts to present Dabi and Himiko Toga, the former telling Tomura he looks worse in person and the latter thrilled to be there.

Drawn from the end of Chapter 61 through Chapter 62, the start of Chapter 63, the close of Chapter 64, Chapter 65, the opening of Chapter 66, and the final pages of Chapter 67. Because the anime runs the exams in sequence rather than simultaneously, Izuku and Katsuki go last and every classmate has already finished, which replaces the manga's mid-fight announcement of Momo and Shoto's win and All Might's remark about Eraser Head losing. The alley scene is greatly extended, showing the two finding common ground and building their counterattack live, where the manga formatted the whole plan as a flashback running through Izuku's head. Katsuki stewing over how fast his rival has improved is added at the top of the episode, All Might's comment on their teamwork is folded into the scene it belongs to, and a short beat of him kneeing Katsuki into a building is new. The closing moments extend the pair passing the gate to show their classmates cheering, and add a monologue from Izuku on what everyone learned across the school year.