Sarah describes her vision of BOB to Deputy Andy while he sketches the man's face. She also describes a vision of someone taking Laura's heart necklace; Donna winces at this, as she and James were the ones who hid it.
Cooper interviews Dr. Jacoby about his sessions with Laura, asking him if she was seeing him about her cocaine addiction. Jacoby does not wish to breach his confidentiality agreement but admits that he struggled to understand Laura's problems. Cooper then asks him if he was one of the three men who had sex with Laura on the night she died. Somewhat amused by the direct question, Jacoby denies that he was sexually involved with Laura, and instead casts suspicion on a man Laura told him about, who is driving a red Corvette — Leo Johnson.
Cooper's boss, Gordon Cole, calls him at the sheriff's station, offering insight into Laura's autopsy. Gordon explains that the twine from Laura's shoulders is a common household item, but the twine from her wrists does not match. He says that the marks on her shoulders were bird bites and that Albert is still working on reconstructing the plastic fragment from her stomach. Gordon also mentions that Albert wants Harry's badge because of their fight, but Cooper defends Harry.
Andy brings in his sketch, which Cooper identifies as the man from his dream. He also receives a call from Deputy Hawk, who has located the One-Armed Man they believe is somehow involved; the group finds him at the Timber Falls Motel. The man, Philip Michael Gerard, is a traveling salesman. They show him the sketch, and Gerard answers that while he is sure he has never seen the man in the drawing, he still looks oddly familiar somehow. They then ask him if he knows anyone named Bob, and he says that the only Bob he knows is his best friend Bob Lydecker, a local veterinarian, but he is currently in a coma at the hospital.
At the very motel, Ben Horne is having an intimate meeting with Catherine Martell; they discuss their plan to burn down the town's sawmill. But unbeknownst to both of them, Josie is sitting outside in a car, spying on the couple in their motel room. Josie is turn spotted by Hawk, who finds her hanging around the motel rather odd, and he informs Cooper and Harry of having seen her after their meeting with Gerard.
Norma travels to a parole hearing for her husband, Hank. She speaks with Hank prior to the hearing, and he pleads with her to back him up and promises that he has changed. At his parole meeting, Hank blames fate for his accident, and Norma, though obviously conflicted, says that she will give him a job when he's out of jail and that they will live together.
Cooper, Harry, and Andy pay a visit to Bob Lydecker's veterinarian clinic. The receptionist takes a look at the sketch and says that whoever the man is, he is not Dr. Lydecker. Cooper believes that the bird that attacked Laura might have been a patient at Lydecker's office and orders the office's files confiscated.
Meanwhile, Shelley and Bobby meet again in Leo's house. They talk about the funeral and Bobby is still very angry that James was seeing Laura behind his back. She also shows him Leo's bloodstained shirt. He takes it, believing that it might give them the means to get rid of Leo for good. She also shows him the gun she has brought, and the two play around with it for a bit while Bobby teaches her how to use it.
Back at the Sheriff's station, Cooper put Andy and Lucy to work sifting through the clinic's files. Later, Gordon Cole calls in with another update for him. Albert has finished his reconstruction of the plastic object, and it turns out that it is a piece of a poker chip with a J on it — possibly for One-Eyed Jack's. Albert also believes that the strange marks found on Laura came from a parrot or a myna bird. Andy finds that the veterinary records list a myna bird named Waldo, who is owned by Jacques Renault. They raid Renault's home, interrupting Bobby, who is planting Leo's bloodied shirt. He flees undetected, but the shirt is recovered as evidence.
At the Double R Diner, James meets Madeline Ferguson; the two seem instantly smitten. Meanwhile, Norma finishes a phone call and — with some apprehension — tells Shelly that Hank got his parole.
At night, Ben Horne meets with Leo in the woods to arrange to have the mill destroyed. Ben criticizes Leo's choice of vehicle, telling him that his red Corvette sticks out like a sore thumb, but says that Leo came highly recommended by Hank, so he is going to trust him with the task. Leo, meanwhile, points to a body and says it is Bernie Renault, and that his brother, Jacques, is back in Canada. Leo does not believe that Bernie gave him up, as Bernie was not too bright. Ben tells Leo to make sure that the mill looks clearly like arson, and hands him an envelope of cash.
James and Donna walk through the woods. Donna says that Sarah knows about the necklace's burial, that she had a vision and saw someone take it. James, skeptical of this, pull aside the rock they buried the locket under and finds to his astonishment that it is gone. Donna says that somebody must have seen them and followed them. James wonders if it could have been Sarah herself, but Donna tells him that Laura and her mother both had some strange and rather uncanny ability to know about things they have had not witnessed personally, believing that is very possible she only knew about it from a vision. They discuss telling about the missing locket to the police. Donna says they are the only two who loved Laura, and that they must find her murderer for the sake of their relationship.
Josie answers a call from Harry, who asks why she was at the Timber Falls Motel, but she says to call her tomorrow. She briefly small-talks with Pete, who is retiring for the night, as she shifts through today's mail, before she, much to her worry, comes across a letter with a picture of a domino with double threes, then the phone rings. It is Hank, calling from the prison and licking an identical domino. He asks Josie if she got his message, to which she apprehensively answers yes. He tells her that he will catch up with her later, and hangs up. A shaken Josie puts down the phone.
Tropes:
- Asshole Victim: Leo Johnson is someone so awful that framing him for Laura Palmer's murder feels pretty damn good.
- Big Good: FBI Director Cole is this in the greater Twin Peaks canon. This is the episode he's introduced.
- Bunny-Ears Lawyer: Director Cole is every bit as much an oddball superagent as Cooper.
- Frame-Up: Bobby attempts this by planting Leo's bloody shirt in the Renault residence.
- Grand Theft Me: MIKE is apparently a spirit who possesses Phillip Gerard, the shoe salesman, rather than a material figure.
- The Heavy: Jacques Renault is neither a criminal mastermind nor a minor threat to the Twin Peaks cast.
- Psychic Powers: Sarah Palmer seems to have these abilities.
- Reckless Gun Usage: Andy drops his pistol and has an accidental discharge, causing Cooper and Truman to assign him extra shooting practice.
- Replacement Goldfish: Maddy strikes James and Donna both as someone to replace Laura. This kind of settles her.
- Xanatos Gambit: Ben Horne makes a deal with Catherine Martell to burn down the Packard Mill and make it look like insurance fraud which implicates Josie Packard.
