Contains spoilers for this episode and earlier episodes.
James arrives at Harold's house and gets Donna and Maddy out of the confrontation, but Laura's diary remains behind. Donna finally tells the sheriff about it rather than attempting another theft. Cooper tends to Audrey at the Bookhouse, where she recovers from the heroin forced on her. Truman identifies Jean Renault as Blackie's killer, and Cooper realises the kidnapping was meant to lure him into revenge for Jacques's arrest. He returns Ben's money and explains what happened to Audrey. Shelly and Bobby discover that Leo's care leaves them far less money than they expected, forcing Shelly to consider leaving the diner.
Maddy tells James that she enjoyed being mistaken for Laura for a while, but now wants her own life back and plans to leave town. Josie is also preparing to go, under Jonathan's pressure and his threat against Truman. She forces Ben to pay her share of their deal by pointing to evidence she has secured against him. Gordon Cole arrives with forensic information and a chess move from Windom Earle. When Gerard is questioned without his medication, he speaks as MIKE and describes BOB as a spirit who uses a human host. Asked where BOB is hiding, he describes a large wooden building occupied by different people each night. Cooper identifies the Great Northern as the next place to search.