Yao Fei shoots an animal and Oliver asks if he can shoot the bow instead of picking up dead animals. His rescuer hands him the bow and gives him basic instructions on how to shoot. Oliver takes the bow and concentrates, and then fires and misses his target. Yao Fei tells him that he'll die badly and that he should get the arrow. As Oliver goes into the woods, three hooded men grab him and toss him into a caged hole.
Oliver is taken the police and booked for murder. Quentin interrogates him and Oliver insists that it's all a mistake and that he's not who Quentin thinks he is. Quentin dismisses him as a rich playboy and says that they have security footage showing him with the green hood. Oliver repeats his claim that he hid in the stairwell and found the duffel, thinking that it belonged to the shooter. Quentin pointed out that the vigilante harassed Adam Hunt across from Oliver's bar and that it was no coincidence. Moira and Walter come in and inform Quentin that the interrogation is over until Oliver's lawyer arrives. Quentin warns them that he has solid evidence but has no choice but to leave them alone.
Once Quentin leaves, Oliver says that Quentin is on a vendetta because he got Sarah killed. He tells Moira and Walter that he wants Laurel as his lawyer, explaining that Laurel knows that he could never be a murderous vigilante. Oliver also figures that Laurel can convince her father to drop his vendetta, and Moira reluctantly agrees.
Later, Moira goes to the legal aid office and meets with Laurel, who has already seen Oliver's arrest on the news. She's surprised that Oliver asked for her and says that it's not a good idea to represent someone she was intimate with. Moira says that she appreciates Laurel's idealism and leaves.
Oliver is brought to court and says that he's representing himself. He assures the judge that he won't have another lawyer and that he's innocent. The prosecutor, Kate Spencer, moves against bail but Laurel arrives and steps in as Oliver's lawyer, saying that the people's case is circumstantial. She invites the prosecution to minimize the flight risk by confining Oliver to home and attaching a GPS device. Oliver starts to object but Laurel ignores him and the judge agrees. Once she assigns bail, Oliver thanks Laurel for coming and she assures him he couldn't be the vigilante because the hooded killer is trying to make a difference.
Back at the manor, a police officer attaches the GPS device to Oliver's ankle. Oliver says that he's having a get-together the next night, pointing out that he's going to go with a prison theme. Tommy warns that it might not be in the best of taste but Oliver insists that he wants people to know that he has nothing to worry about.
At home, Quentin reminds Laurel that Oliver got Sarah killed but Laurel points out that's why her father is biased. Quentin doesn't believe it even though that Laurel points out that the Oliver they know couldn't be a vigilante archer. The detective stands by the evidence he has but Laurel insists that Oliver didn't get Sarah killed or cause Quentin's wife to leave. As Quentin leaves, Laurel says that he's not the only one who misses them.
Diggle comes to see Oliver, who says that he knew the security camera was there and set up the whole thing so he would be arrested. He points out that someone would have made the connection anyway, but Diggle points out that Oliver is putting his family through hell. Oliver admits that he does care but that the mission comes first. He shows Diggle an article on Leo Mueller, a German arms dealer who stole automatic weapons and came to Starling City to sell them. Diggle warns against it and notes that Oliver is under house arrest, but Oliver asks Diggle to shadow Mueller and find out when the sale is going down. He wonders how and Oliver sends him to his hideout to get some transponders.
Walter calls in Josiah Hudson, his head of security, and tells him that they're meeting off the record. He explains that he found Robert's yacht and wants Josiah to transfer the remains to a secure location. When Josiah wonders what's going on, Walter says that he doesn't know... yet.
Laurel arranges a meeting with Kate and Quentin. Kate says that Quentin bypassed her office to make the arrest and offers a plea of insanity. Oliver refuses and offers to take a polygraph in front of Quentin to convince him that he's telling the truth even though it's not admissible in court. Laurel talks to Oliver privately and points out that it's a good deal. He says that if he fails the polygraph then he'll make the deal and Laurel agrees. However, she reminds him that he's not the only person with someone to lose.
Oliver is taken to a camp where more mercenaries are loading crates. He's taken into a tent where the leader is waiting. He apologizes for his men's treatment and pours himself a drink, then introduces himself as Edward Fyers. Oliver explains who he is and that he was shipwrecked there, and offers a reward for his rescue. Fyers wants to talk for the moment and shows Oliver a photograph of Yao Fei in a soldier's uniform. Oliver claims he doesn't know him but Fyers knows better and gives him one more chance. When Oliver sticks by his story, Fyers says that he will make Oliver's life hell and brings in his interrogator, a man in an orange-and-black hood.
The workers set up for the party and Oliver comes out to see Thea. He assures her that everything will be fine but she points out that he's been acting weird since he came back and has scars. Thea reminds him about the arrowhead he gave her and Oliver claims that he bought it for her in a gift shop. She admits that she knew Oliver couldn't be a vigilante but is worried that she'll lose her brother again and he promises that she won't.
Moira comes to see the well-dressed man and assures him that the charges against Oliver are false. He asks if there is something untoward concerning Oliver and warns her that they need to know if there is.
Oliver and Laurel meet with a polygraph technician and Quentin. After asking questions to calibrate for accuracy, Quentin asks if he was at the prison and if he's the vigilante.
The hooded torturer looks on as Fryers asks Oliver if he's seen Yao Fei.
Oliver says that he's not the vigilante and the polygraph technician confirms that he's telling the truth. Quentin continues asking questions, focusing on Oliver's time on the island.
The torturer cuts Oliver on the chest.
Quentin asks Oliver if he was alone on the island. He says that he wasn't alone but didn't want to talk about it because the people tortured him. The detective asks if he killed anyone and Oliver admits that he killed Sarah by inviting her onto the yacht with him. He takes off the monitors and walks out, and the technician says that as far as he can tell, Oliver is telling the truth. Laurel asks if Quentin will recommend that the DA drop the charges, but Quentin says that he knows Oliver is guilty whether Laurel can see it or not.
That night, Oliver throws his party and greets everyone. He invites them to make as much noise as they want as Quentin watches from the crowd. Afterward, Oliver meets with Diggle, who gives him Mueller's location. Oliver says that the vigilante is going to stop them and explains that it doesn't have to be him in the hood. Diggle realizes that Oliver set up the party so that he'd have witnesses to give him an alibi, and Oliver admits that he didn't count on having Diggle have to deal with an arms deal. Diggle says that he's fine with the risk but he doesn't like being played and warns him that he's the one guy Oliver never lies to. Oliver apologizes and Diggle tells him that he'll stop the deal.
Mike Vogel in security calls Walter and tells him that Josiah was in a car accident and is dead.
Laurel arrives at the party to see Oliver and asks to talk to him privately. He escorts her to his bedroom and Laurel apologizes for Quentin's behavior. Oliver assures her that Quentin has a right to be angry, but Laurel explains that Quentin threw himself into his work after Sarah died and his wife left him. She tells Oliver that she was so focused on her family that she never wondered what happened to Oliver while he was shipwrecked. Laurel asks to see them and Oliver bares his chest. He admits that there were times when he wanted to die, but in the end there was something he wanted more. They kiss briefly but then Laurel runs out, saying she has to go.
Fyers is surprised at Oliver's resolve when he doesn't break, and wonders if he doesn't actually know anything. He tells his torturer to put Oliver out of his misery, but Yao Fei storms in and takes out Fyers and his guard. He fires an arrow at the torturer but the man catches the first arrow and the two men fight hand-to-hand. Yao Fei finally knocks his opponent down and escapes with Oliver.
A street gang is buying the arms from Mueller at a warehouse when the lights go out. Mueller and his men grab the arms and drive away, while a hooded Diggle steps in and takes out the gangers.
Walter summons Moira to his office in the middle of the night and tells her that he found Robert's yacht. He also knows that she secretly salvaged it and that he had Josiah move it to a more secure location when he was murdered. Walter says that he knows she's been lying to him and Moira warns that if he looks into it then he'll be upsetting people far beyond him.
Diggle calls Oliver to tell him that he broke up the arms deal. An assassin disguised as a waiter comes up to summon Oliver. As Oliver comes out, he sees the gun and fights it out with the man. The killer manages to bring his gun to bear but Quentin runs in and kills the man. Later, Quentin takes Oliver downstairs and Moira and Walter arrive. Moira accuses Quentin of endangering Oliver by accusing him of being the vigilante. Quentin removes the GPS bracelet, explaining that they have multiple witnesses to the vigilante breaking up the arms deal. Moira orders Quentin out and Oliver thanks him as he goes.
The next day, Moira meets with the well-dressed man unexpectedly and accuses him of trying to kill Oliver. The well-dressed man insists that he had to take steps to dispose of Oliver if he was their enemy and offers his apologies now that it's clear that Oliver isn't the vigilante. He admits that he had Josiah killed and Moira says that she'll do what he asks. However, she warns the well-dressed man that if he comes after her family then she'll destroy him.
At the manor, Oliver finds a pouch on the floor of his bedroom.
Yao Fei takes Oliver back to the cave and admits that he was strong than he thought. He gives Oliver the pouch, walks out, and seals the cave behind him.
Laurel comes to see Oliver with the polygraph results. She points out that when Oliver said that he wasn't at the prison, she knew that he went there on a field trip in the eighth grade. There are flutters on the question readings and Laurel figures that if he lied about that, he could lie about something else. Oliver tells her that he doesn't talk about what happened on the island because people would see him as damaged. He tells her that he doesn't sleep, barely eats, and can barely sign his name much less aim a bow and arrow. Laurel admits that they're still attracted to each other but insists that nothing can happen between them. Oliver agrees and Laurel gives him the polygraph results.
Later, Oliver and Diggle meet at the hideout and Oliver insists that he told Laurel what he had to. Diggle figures that things didn't go down the way Oliver planned when he lied to the people he loved.
Moira discovers that Walter is leaving for Melbourne on a business trip. He says that he doesn't know how long he'll be gone.
Diggle asks if Oliver considered the effect his plan would have on people's lives.
Laurel finds her father drunk at a bar and takes him home.
Oliver tells Diggle that he thinks about it all the time and that lying to his family hurts him worse than anyone else. He then goes out after Mueller and breaks up a new deal, taking down Mueller's men and telling the criminal that he's failed the city as he fires at the arms dealer.