A young woman, Sheila Case, is jogging past the docks when she spots something in the harbor: a three-masted clipper ship from the turn of the century, sailing ahead of the oncoming storm. It disappears and she goes back to her house to take a shower. As she does, a shadowy figure appears behind the glass but when she turns to look, it disappears. She goes back to her shower... and the figure appears in the shower with her, and kills her.
Sam and Dean are driving to investigate the murder and Dean has figured out Sam fired one of the Colt’s bullets. Sam finally breaks down and admits he shots the Crossroad Demon, and that he found out someone else holds the lien on Dean’s soul. Dean isn’t thrilled since Sam put himself at risk and ended up killing their only lead. They then arrive and talk to Sheila’s aunt, Gertrude. After confirming that Sheila drowned, Gertrude admits she has someone known as Alex working on the matter and had similar questions. Gertrude also comes on to Sam, much to Sam’s embarrassment and Dean’s amusement. They head out and Sam confirms there have been other reports of “dry-land drownings,” and each of the victims saw the clipper ship before they died.
The guys find the Impala missing and run into Bela Talbot, who reveals she had it towed away. Bela works in the area under the name of Alex and knows Gertrude, and offered to look into her niece’s death. The guys aren’t thrilled at her involvement, even though she claims she isn’t getting paid.
A man is shaving in his bathroom that night when his tub starts filling up on his own. He reaches in and pulls the plug, but nothing happens. An arm reaches out of the water and grabs the man’s throat, and his body starts filling with water.
The guys go to check out the murder posing as detectives, and Bela is already there. They manage to get her out of there and talk to the dead man’s brother, Peter Warren. Peter confirms that both he and his brother saw the clipper ship during a night dive and they figure he’s next. Bela reports them to the real police and the brothers quickly get out of there before they can be arrested.
The guys watch Peter’s house that night but he spots them and, warned by Bela, takes off. However, his car stalls out and the ghostly figure appears in the passenger seat. It’s missing a hand, but grabs Peter with his good arm and his lungs fill up with water. Dean manages to drive the spirit off with rock salt but it’s too late for Peter. Sam isn’t thrilled, since he hasn’t been able to do anything to save Dean’s life and wasn’t able to save Peter either.
The guys are squatting at an old house and Bela come to visit them. She reveals that the ghost is the spirit of a sailor who was hung and his hand cut off. His hand was made into a Hand of Glory, a powerful mystical artifact. Bela asks the guys to help he get a look at it at the nearby maritime mystic, which is throwing a party. Bela gets Gertrude to extend them an invitation, since Gertrude wants to be close to Sam. Dean and Bela slip upstairs past the security guards by having Bela fake a faint, while Sam dances with the amorous Gertrude. Dean manages to get the Hand out of its case and back to Bela, who thanks him and leaves.
Meanwhile, Gertrude reveals to Sam that Peter and his brother were rumored to have killed their father for the inheritance. Further, Sheila ended up in a car wreck that killed her brother Brian. Sam gets out of there but outside the brothers realize that Bela has scammed them again, taking the Hand. Meanwhile Bela has sold the Hand and is down at the dock... when she sees the clipper ship.
Bela goes back to the brothers and ends up kind of asking for their help. They realize that the ghost has been going after those who have killed their own family members, since it was his brother the captain who had him hung. They realize Bela must have killed a family member but she refuses to say who. They end up agreeing to help her even though she’s gotten rid of the Hand to a buyer.
The trio goes to the local cemetery and Sam begins chanting a summoning ritual over the dead man’s grave. A storm comes up and the spirit attacks Bela despite Dean’s efforts. Sam manages to complete the ritual in time, and the ghost of the brother appears. It tries to apologize but the murderous spirit attacks him and the to disappear in a wave of water.
Bela ends up paying the Winchesters for their help: she’d rater give them cash then say “Thank you>’ She takes off and Dean decides to spend their money in Atlantic City. Sam isn’t thrilled with Dean’s indifferent attitude, and gives him grief for not worrying about his fate. Dean just shrugs and figures he’d rather play craps.
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