The episode begins with Shawn packing his things. He tries to convince Juliet to forgive him. At that moment, Kimberley, the girl who Juliet is interviewing to be her new roommate, arrives. Shawn is surprised that Juliet is kicking him out and replacing him on the same day. Shawn tries to scare Kimberley by telling her that there is a ghost in the house, but it doesn’t work. On his way out, Shawn tells Juliet that he is not going to give up on them. Later, Shawn wants to move in with Gus, but Gus tells him that Rachael and Max are staying with him because their house is being fumigated.
Henry tells Shawn that he could move in with him, but Shawn tells him that he doesn’t want to set foot into that house, especially after he saw his parents having sex. Henry hands him a flyer which says that a roommate is needed for a ‘palatial beach front property’. Shawn calls the number and it turns out that the ad was placed by Woody. Gus does not like the idea, but Shawn decides to move in with Woody. It is seen that Woody lives in a trailer, and he decides to drive it to the beach before Shawn arrives. Later, the team arrives at the crime scene. Once again, Shawn tries to convince Juliet. Juliet tells him that she did not hear from Kimberley again because she thinks that Shawn scared her with his ghost stories. Shawn looks at the dead body on the ground and tells Juliet that she did not hear from Kimberly because Kim is dead.
In the morgue, Shawn asks Lassie if he could shift with him because he is not able to live with Woody. Lassie says no. Woody tells them that cause of death is blunt force trauma to the head. Lassie states that the lack of blood at the crime scene indicates that Kim was murdered elsewhere. Juliet arrives and they ask her if she could give them any information on Kim, but she knows nothing about Kim. At home, Juliet is interviewing another girl, Laura and they seem to get along very well. Laura asks Juliet if she would like to have a drink at the “Chillerz”. Juliet agrees. Shawn notices Laura’s picture where she is dressed as a ‘hippie’. Laura leaves. Shawn asks Juliet if she remembers anything else about Kim. She tells him that Kim liked to do Bikram yoga and there is just one yoga class in town. Shawn and Gus go to the yoga class. The instructor tells them that Kim was a sweet girl. She was a regular at class and she also tells them the building where Kim where lived. On their way out, the duo runs into Laura.
They learn that Laura attends the same yoga class. Shawn tells Gus that Laura has the ‘hots’ for him. They go to check Kim’s apartment. The manager, Dave, tells Shawn that Kim lived with a girl named Wendy. Shawn looks around the apartment and he notices tiny drops of blood on a glass vase. He figures out that Kim was murdered in the apartment. He also notices that a small portion of the carpet was recently scrubbed. He sees a nose ring on the carpet and remembers seeing Laura wearing the same nose ring in her picture. He now feels that Laura murdered Kim so that she could stay with Juliet. Later, Shawn and Gus go to the Chillerz. They find Laura sitting at the bar and she looks exactly like Juliet.
She tells the duo that this is her new look. Shawn and Gus are at a loss for words. They decide to leave. Laura watches the news about Kim’s murder on the television and she quickly leaves the bar. On their way out, the duo run into Juliet and tell her about Laura. Obviously, she doesn’t believe them. The waitress arrives and tells Juliet that she left her purse at the counter. Juliet is surprised. They check the purse and they learn that Laura has six different IDs. They rush home and Juliet learns that all her clothes are missing. Gus goes through Laura’s fake IDs and notice that one of them has the name, Wendy. Shawn remembers that the manager told them that Kim lived with a girl named Wendy. This means that Laura was Kim’s roommate.
Shawn is worried about Juliet and she assures him that she will be careful. At that moment, a guy who Laura met at the bar, arrives, and asks for Laura. It seems that Laura asked him to come over. Shawn tells him that Laura is gone. The guy leaves. Next, Shawn arrives at the trailer and sees that Woody has managed to bring home some hookers. Shawn tells Woody that he is still not over Juliet. Woody tells Shawn that Juliet is pretty much done with him because he saw Juliette at the Owl’s Nest, a place where desperate singles come to have some fun. Shawn realizes that Woody saw Laura at that bar. He informs Juliet. Later, Juliet and Lassie go to the Owl’s Nest, but they don’t find her inside the club. They then learn that Laura went out through the back door. They come out of the back door and see a white jeep drive past them.
They chase the jeep. A black colored SUV vehicle follows Juliet and Lassie. It is a wild chase and Juliet is cut off by the black vehicle. She resumes the chase and arrives at a bridge. They see that the white jeep ran off the bridge, into the river. The next day, at the precinct, Lassie tells Juliet that Laura’s body wasn’t found, but they found some clothes. They are Juliet’s clothes that Laura stole. Lassie shows them the traffic camera footage and points out to a black Ford that cut them during the chase. He feels that it could be somebody from Laura’s past (mostly an enemy), who forced Laura off the road. Shawn looks at the black Ford and remembers seeing it parked in front of Kim’s building. Shawn thinks that they have to go and talk to Dave. Dave hands them Laura’s recent mails.
Shawn finds a phone bill and sees a lot of calls made to a 501 number. Shawn dials that number from Dave’s office phone, and a woman answers the call and immediately starts a conversation, before Shawn could say a word. Shawn figures out that Laura is alive and still in the city. At the precinct, Shawn tells the team that the 501 is an Arkansas number and that the woman who answered the call, called Laura, Layne. He explains how Laura staged her accident. Later, one of Laura’s old roommates, Sarah James, is brought in for interrogation. Juliet interrogates Sarah, who tells her that Laura was a great roommate. She says that the only time Laura acted strange was on the day she left. She says that Laura was rattled when she saw a black Ford SUV parked in front of their house.
Lassie arrives and tells Juliet that they have got something. Lassie tells Juliet that Laura’s records are clean. Shawn remembers overhearing Laura and Juliet’s conversation, where Laura tells her about her bad relationship. Shawn figures out that Laura is running from her ex. They check Laura’s wedding announcement from 2006, and Shawn sees that her ex is the same guy who came to Juliet’s house, after Laura ran away from the bar. His name is Patrick Hess and his father is in local law enforcement. This is why she couldn’t get a restraining order against him. Shawn thinks that Patrick tracked Laura down and killed Kim because Kim didn’t tell him anything about Laura. Shawn wonders why Laura is still in the city and why she didn’t flee after faking her death.
He then remembers the woman on the phone asking if Laura found the locket. Juliet tells her that Laura wore her grandmother’s locket around her neck. Shawn figures out that Laura must have left it in the yoga class. They go to the yoga class to find the locket. At home, Juliet finds the locket on the floor. Laura appears and tells her that she needs that locket. She tells Juliet about her ex. At that moment, the power goes out and Laura knows that her ex is around. Shawn tries to call Juliet to tell her that the locket isn’t in the yoga class, but he is unable to reach her. They go to Juliet’s house.
At home, Juliet beats the crap out of Patrick. By the time Shawn comes to her rescue, Patrick is already on the floor, unconscious. Case Closed. Next, Juliet tells Shawn that Laura has gone to Arkansas to her mother. She says that she is pretty impressed with Shawn’s investigative abilities, but she is still not ready to take him back into her life or her house. Shawn understands and he leaves. The episode ends.