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n the cliff-hanging season final, James and Donna search Dr. Jacoby's office and find the cassette recording of Laura Palmer and the half-heart necklace. At the same time, Dr. Jacoby is attacked by a masked assailant while watching the disguised Maddy Ferguson. At the One-Eyed Jacks, the undercover Cooper sets up Jacques Renault for a meeting where, Renault gets arrested and shot by Andy trying to escape. Audrey is set up by Blackie to prepare herself for the owner who likes the "new merchandise" unaware that it's her father who's nearby with Jerry celebrating after the Icelandic businessmen sign the papers for Ghostwood Developments. Back in Twin Peaks, Nadine attempts suicide by swallowing a whole bottle of sleeping pills. Bobby begins his final plan of revenge against James by planting cocaine in James's motorcycle and anonymously tips off the police to arrest James. The violent and misogynistic Leo returns to takes his revenge against Shelly by taking her to the sawmill as a captive and setting the fire that Benjamin Horne ordered. After giving Leo instructions to set fire to the sawmill, Ben then calls Hank Jennings and orders him to murder Leo when his job is finished. Josie meets with Hank and pays him $90,000 revealing that she hired him years ago to murder her husband to inherit the sawmill, and she now orders him to murder Catherine. Lucy reveals to Andy that she's pregnant. Meanwhile, Leland hears about Jacques arrest and goes to the hospital where he murders him in his hospital bed. As Cooper returns to his hotel room for the night, he gets a cryptic phone call and when he answers a knock on his door, he finds a masked person in black who shoots him....

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