As Hank struggles with his physical therapy and Skyler and Marie discuss his bills, Walt continues to contend with the possibility that Jesse is stealing some of the meth they cook for his own side-business.
At the Narcotics Anonymous meeting, Badger and Skinny Pete confess to Jesse that they can't bring themselves to sell the blue meth to the other members, both suffering a pang of consciousness at trying to hook recovering addicts. Jesse, who has no such scruples, decides to show them how its done by attempting to work over a new member of the NA group: Andrea Cantillo, who stated her reluctance at being in the group.
After dinner, where Junior announces he would soon be able to drive without supervision and wants a 1971 Mustang for his own car, Walt hands Skyler some of his money in confidence to pay for Hank's medical bills. Skyler is worried about whether the money is "unimpeachable". To that end, she goes with Walt to meet Saul. Saul suggests that they use money from Walt's "gambling addiction" as seed money to buy a business to launder his drug money: specifically, a laser tag arena. Skyler is perplexed: Walt's purchasing a laser tag arena would be too out of character, and would draw suspicion. After leaving Saul's office, Skyler proposes an alternative solution to Walt: using his seed money to purchase Bogdan's car wash, a business he worked at for many years, and one that would allow him to evade suspicion.
Meanwhile, Jesse seduces Andrea in an effort to coax her into buying his blue meth. His sales pitch to her comes to an abrupt halt when her five-year-old son, Brock, returns home. Jesse and Brock hit it off and become fast friends, and he becomes much more reluctant to sell to Andrea after finding out she's a mother. Andrea calls Jesse out on his reluctance, on how a drug dealer like him could tell her how to live her life, and insists that she is a good mother, and that she wouldn't let what happened to her younger brother Tomas happen to her son. She confides in Jesse that Tomas had fallen in with a gang and, at the age of 10, was made to assassinate a rival drug dealer, shooting him through the neck. Jesse becomes mortified as he learns that Tomas was the one who killed Combo...
At the hospital, Marie excitedly tells Hank that he could be released soon, since he could continue his physical therapy at home. Hank refuses, however, and adamantly states that he will only leave the hospital when he can walk out.
Walt discusses the idea of buying out the car wash with Saul, but Saul is reluctant: he explains that the car wash doesn't have a "Danny", an accomplice who would let his business be used for laundering money and ignore any wrongdoings to keep his it afloat, much like the owner of the laser tag arena, a fellow named "Danny". Walt discusses the idea of a "Danny" with Skyler afterwards. Skyler volunteers to be the car wash's "Danny", an idea that Walt is reluctant to go along with: he reminds Skyler that they are divorced. Skyler reveals, however, that she never turned in the divorce papers: legally, they are still married, and as such, they would not be compelled to testify against each other under spousal privilege.
Gus invites a surprised Walt over for dinner at his home. As the two share a Chilean dish that Gus has Walt help prepare, Gus offers Walt advice: that anyone can know how to be poor, but that one must learn how to be rich; and as such, to never make the same mistake twice.
Meanwhile, Jesse travels to the street where Combo was shot. He sees a young boy circling around on his bike, the same one that shot Combo: Tomas. He asks the boy for some meth. A car pulls up with the two gangsters who were present when Combo was shot, and from them, Jesse buys some meth. He soon realizes that the meth is blue, exactly the same as the meth he and Walt cook.
From this, Jesse comes to a frightening realization: the people responsible for Combo's death are on Gus's payroll!
This episode contains examples of:
- Ambiguous Situation: There are children's toys visible in Gus's house, and he mentions to Walt that his favorite Chilean dish is one he can't cook often because "the kids don't like it". This is the only mention in the entire series of Gus having a family so it's likely that he's making all of it up to appeal to Walt's family values. However, given the fact that other characters like Tuco and Lydia are shown to have family members that are similarly only minor parts of their otherwise criminal lives, it isn't truly clear how much of it is a lie.
- Becoming the Mask: Badger and Skinny Pete both get involved in the NA meetings to sell meth to the recovering addicts, but end up entering recovery themselves.
- Bilingual Bonus: When Andrea's grandmother is told the lie that Jesse is a sponsor of her rehab program, she walks out of the house saying (in Spanish,) "Miserable, shameless. I'm tired, really tired of all of this. Miserable, shameless."note
- Brick Joke: Jesse is sad that there aren't actually paintings of vaginas in the Georgia O'Keeffe Museum.
- Buffy Speak: Walt on Saul's qualifications: "My guy is a top... guy."
- Call-Back: A big one in the car wash, as Walter hasn't worked there since the pilot episode.
- Jesse is horrified at the idea of Andrea getting high despite having a child. He had the same reaction when he saw Spooge's kid in Peekaboo.
- Call-Forward: "I just threw up in my mouth a little." The quotation's from a flashback prior to what happened in "Phoenix."
- Contrived Coincidence: The kid that killed Combo turns out to be the brother of Andrea, the girl Jesse gets involved with at the NA meetings.
- Even Evil Has Standards: Badger and Skinny Pete are reluctant to sell meth to recovering addicts. "It's like shooting a baby in the face." Later it turns out Jesse can't really do it either, once he finds out Andrea has a son.
- Flashback: The Cold Open features one, showing the day Jesse and Jane finally went to see the Georgia O'Keeffe Museum.
- Foot-Dragging Divorcee: After Walt previously signed the divorce papers Skyler gave him, she reveals that she had never signed them herself or turned them in.
- Freeze-Frame Bonus: When Walt enters Gus' home, there are children's toys in his living room, suggesting Gus wanted to play up a family-man persona to Walt.
- Gilligan Cut: Walt tries to call Skyler's bluff on seeing just "what kind of guy" he has to launder money for him. Cut to them sitting in Saul's overly crowded waiting room.
- No, Mr. Bond, I Expect You to Dine: Gus invites Walter over to have dinner and dispense advice. Given the soon-to-follow progression of Gus being the series' Big Bad, this is certainly an example.
- Wham Shot: When Jesse buys meth from the dealers who had Combo killed, it's blue, proving that they were working for Gus.
- What the Hell, Hero?: Jesse calls out Andrea on wanting to do drugs with a son to take care of.