ooper, Truman, and Cole take the one-armed man to the Great Northern Hotel which is hosting a USO stop-over in their search for Bob where 'Mike' shrieks and panics when Ben Horne approaches. Hawk searches Harold Smith's house for Laura Palmer's secret diary only to find Harold dead from a suicide, and his house and Laura's diary torn apart by him. Meanwhile, Maddy says goodbye to James as she prepares to leave Twin Peaks. Shelley tells Norma that she's quitting working at the Double R Diner to care for Leo, while Bobby and Mike find a mini-cassette recording in Leo's boots that reveal Ben giving Leo instructions to burn down the sawmill. Audrey tells her father that she knows about Laura's employment at One-Eyed Jacks, and she tells Cooper about Ben's involvement in which Cooper and Truman arrest Ben as a suspect in Laura's murder. Also, Mr. Tojamura plans to buy the Ghostwood Estates and when he learns of Ben's arrest, Mr. Tojamura goes to the Blue Pines B&B and surprises Pete Martell by revealing that 'he' is actually the missing Catherine Martell in disguise. In the climatic twist, Cooper receives another message from the Giant who tells Cooper that "it's happening again", while across town Maddy accidentally learns the identity of Laura's killer, and who Bob inhabits.

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