Contains spoilers for this episode and earlier episodes.
Cooper starts his first full morning in Twin Peaks with coffee at the Great Northern and an encounter with Audrey Horne, who takes an immediate interest in him. At the sheriff's station, the autopsy reveals how badly Laura was hurt and confirms that her last night involved several men. Cooper questions James about Laura's cocaine use and their hidden romance. A reflection in the picnic recording undermines James's attempt to keep himself out of the story, but Cooper does not believe he killed her. James is released, as are Bobby and Mike, whose private conversation reveals a drug debt connected to Laura.
The inquiry takes Cooper and Truman to Josie Packard, who knew Laura as her English tutor. Cooper recognises the sheriff's affection for Josie while Catherine Martell and Ben Horne pursue their own plans for the sawmill. Shelly discovers blood on Leo's shirt and hides it, an act that brings a violent punishment when he notices it missing. Sarah Palmer sees a long-haired man crouching in Laura's room, adding another disturbing image to her grief. The final scene shifts to psychiatrist Lawrence Jacoby. He listens to Laura's recorded confidences while holding the missing half of her necklace, revealing that the item James and Donna buried is now in his possession.