Jill Engels

Agent Cooper enjoys the comforts of the Great Northern Hotel; Bobby Briggs and Mike Nelson are released from jail; Doctor Hayward hands over the autopsy report on Laura Palmer; Cooper and Truman interview Josie Packard; Audrey Horne and Donna Hayward vow to solve Laura's murder; Sarah Palmer has a vision of a gray-haired man; Doctor Jacoby conceals important information.

Ben Horne's brother, Jerry, arrives in Twin Peaks. He and Donna decide to be together. Ben and Jerry travel to One Eyed Jacks and meet with it's madam, Blackie O'Reilly. Audrey leaves a clue for Cooper. Deputy Hawk finds a bloody towel near the crime scene. Cooper demonstrates a unique deductive technique. The cynical Special Agent Albert Rosenfield arrives to examine the body of Laura Palmer. Josie discovers Catherine has been keeping two ledgers. Leo takes his anger out on Shelly. Agent Cooper has a mysterious dream about the crime.

The next morning, Cooper meets with Audrey, who confesses to leaving him the note about One Eyed Jack's. Cooper tells Truman he can't remember who the killer was in his dream, but insists the dream is a code to solving the crime. Albert, after offending everyone in town, is forced to end his autopsy early. Albert and Truman come to blows. Bobby, James and Leland all make a scene at Laura's funeral. Laura's identical cousin, Maddy, arrives in town. Norma's husband, Hank Jennings, is up for parole. Cooper has suspicions about Dr. Jacoby. Leland shows signs of cracking.

Cooper and company have tea with the Log Lady. The Log Lady tells them there was a third man following after Leo and Jacques the night Laura died. At Jacques Renault's cabin Cooper, Hawk, and Truman find Waldo the bird. The bird not only attacked Laura the night she died, but he can also talk. Cooper finds a broken poker chip from One Eyed Jacks. Hank returns home to Norma. The Briggs family visits Dr. Jacoby. Audrey takes a job at the perfume counter where Laura and Ronette worked. Shelly takes her revenge on Leo. Audrey has a surprise for Agent Cooper.

James saves the girls from a tormented Harold. Cooper brings Audrey home. Bobby and Shelly learn that their insurance plans have backfired. Donna tries to convince Truman that Harold Smith has Laura's secret diary. Cooper's boss, Gordon Cole, arrives with an upsetting message for Cooper. Hawk finds the One-Armed Man, who reveals that he is inhabited by the spirit, Mike. Maddy decides to go home. Jonathan says he's taking Josie back to China. Ben calls Leland back into work. The One Armed Man vows to stop Bob, pointing Cooper towards the Great Northern Hotel.