- Ronette is attacked in her hospital bed by an unseen person. Jean Renault, brother of Jacques and Bernard, plans to blackmail Ben Horne for the release of Audrey. Donna meets with Harold Smith, a shut-in who had befriended Laura.
- Ronette Pulaski (Phoebe Augustine) suffers from a hysterical attack because somebody has just tried to kill her while she was at hospital. FBI Special Agent Dale Cooper (Kyle MacLachlan) and Agent Rosenfeld (Miguel Ferrer) attend the place and they start investigating the matter. There, Dale mentions his dream and the three clues he was offered by the Giant. As usual, Sheriff Harry S. Truman (Michael Ontkean) is the person who will follow Dale Cooper to the end.
At the other side of town, Donna Hayward (Lara Flynn Boyle) meets with the reclusive Harold Smith (Lenny Von Dholen), an orchid cultivator, whom she asks about Laura. Donna is surprised that Laura never once mentioned him. Harold says that Laura told him to talk to her if something ever happened to her, and that he should be prepared because Donna would ask a lot of questions. He offers her a single flower.
At the One-Eyed Jacks, Audrey Horne (Sherilyn Fenn) is held prisoner by Blackie (Victoria Catlin) and Emory Battis (Don Amendolia) who work for Jean Renault (Michael Parks), the brother of late Jacques Renault. Jean intends to extract a ransom from Benjamin "Ben" Horne (Richard Beymer), but he also wants to kill Dale whom he blames for the deaths of both his brothers Bernard and Jacques. Albert doesn't trust Dale Cooper's methods, and he says so. At the police station, Lucy Moran (Kimmy Robertson) talks to Deputy Tommy 'Hawk' Hill (Michael Horse). At that moment, Richard "Dick" Tremayne (Ian Buchanan) appears to have his date with Lucy. Leland (Ray Wise) also appears to talk to Harry, Hawk and Dale. He says he knew the man in the WANTED poster, because he used to live opposite his home when he was a child. According to him, that man used to say "DO YOU WANT TO PLAY WITH FIRE WITH ME?" all the time.
Dick and Lucy go to the Double R diner in their first date. Dick is talkative and vain, but Lucy doesn't make any effort. Lucy had expected to go to Seattle for their date, not to the Double R. It looks as they used to have crappy dates time ago. He talks about the sales on his establishment. Lucy's baby could be his.
Donna watches in disgust a conversation between Madeleine 'Maddy' Ferguson (Sheryl Lee) and James Hurley (James Marshall). Blackie hates Ben Horne because apparently she lost her virginity to him. Although Emory is more unsure - he has so much to lose if he is found out - Blackie can't wait to have her revenge.
Harry looks for the particular brand boots which left the footprints outside Leo Johnson (Eric da Re)'s home. Agent Cooper and Sheriff Truman want to talk with Leo's wife Shelly Johnson (Mädchen Amick). She doesn't want to testify against her husband. Cooper understands that she wants to get the insurance money.
The one-armed man, Philip Michael Gerard (Al Strobel) has a seizure on the toilet after seeing the sketch of the killer Bob and emerges as his alter ego, 'Mike'. Dale talks to Ben Horne about his daughter, who had phoned him to talk about his tuxedo. Dale asks him whether there are problems at home. Ben asks him about his own relation towards Audrey. He advises him to leave her alone. Dale says that he means well in watching Ben. Meanwhile, Audrey is given a kind of candy - possibly with some drugs inside - by suave Jean Renault. Jean, Blackie and Emory review survaillance cameras on the One Eyed Jacks and they recognise Dale Cooper. Jean is convinced that that agent was the one guilty of his brother Jacques' death. Nancy (Galyn Görg) one of the prostitutes at that before-mentioned establishment wants to hurt Audrey.
A Japanese-looking man (Mak Takano) seems to be following Dale Cooper. He is also staying at the Great Northern Hotel. Hawk has found another dead-end looking clue. Dale gets suspicious about his dream and Gerard: he thinks they have some relation. When he goes to the gents' he finds an abandoned syringe, thinking that this is the third clue mentioned by the Giant.
Big Ed Hurley (Everett McGill) watches over Nadine (Wendy Robie), her wife who tried to commit suicide and who had to be restrained so that she doesn't make an attempt again. He sings a lullaby to her, and she keeps on singing it like in a trance. She behaves in a childish way -like when she was a teenager and she went to the cheerleader tryouts. She laughs but Big Ed looks at her terrified.
Dale visits Dr Jacoby (Russ Tamblyn) who has written an statement. He is being cared by by beautiful and sexy wife Eolani (Jennifer Aquino). Dale Cooper reads it and Harry watches, trying to create a moment of inspiration and truth. Dr Jacoby talks about a dream - although he sometimes looks like he's trying to fool Dale. He talks that he saw the man who smothered Jacques Renault.
Donna takes some flowers to Laura's tomb in the middle of the night. She opens her heart right there: her jealousy of Maddy and James, how Laura's problems have hanged out over everybody else like an eagle, her own inadequacy... Meanwhile, Maddy hugs James because he's so worried that he couldn't find Donna. At that moment, Donna appears. James goes after her but she leaves in anger. Maddy complains that everybody treats her as though she was Laura. She opens her heart to Laura's father, Leland Palmer (Ray Wise), who tries to offer some consolation at that moment. At that moment, Dale and Harry appear - they enter because the door was unlocked and open. They arrest Leland because of Jacques Renault's murder. Donna goes to the orchid farmer's in the middle of the night. She is so fed-up of all the Laura investigation, that she is eager to forget about everything.
Donna caresses some of the flowers and tools of Harold. Right there, suddenly, she finds the true diary of Laura Palmer.
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