Cooper and Audrey share breakfast, and he asks her to write her name on a piece of paper, then compares her handwriting to the note he received under his door. She says she wanted to help him, for Laura's sake. He asks what One-Eyed Jack's is, and she explains it vaguely. He then dismisses Audrey when he sees Harry and Lucy. They sit down, and Cooper orders breakfast for them.
When the waitress leaves, Cooper shares his dream with them, but when Harry tries to press him for the name of the killer that Laura had told him in the dream, Cooper, quite embarrassed, admits that he has forgotten that part of the dream. Their conversation is interrupted as Harry gets a radio message that there is a fight at the morgue.
The fight turns out to be between Albert and Dr. Hayward. While Albert wishes to conduct a further post-mortem on Laura's body, an outraged Dr. Hayward dismisses this as indecent, as the body is due to be released for the funeral that day. The argument grows more heated when Albert decides to open up a new round of insults, and Truman ends it by punching Albert, causing him to land on top of the body. Fed up by this, Cooper orders Albert to release the body, and the men leave.
Leland is at home when he is visited by his niece, Madeline Ferguson. Ferguson is identical to Laura save for having black hair, not blonde. At the same time, Cooper and Truman question Leo Johnson about Laura's death, believing him to be lying when he denies knowing her.
At the Double R, Norma discusses her husband's good behavior in prison and that he might be released soon. Hank's parole officer asks how she fends off potential suitors, and she says that she explains that her husband is homicidally jealous.
Bobby, in a suit, stretches in front of a crucifix. His father, Major Briggs, asks to talk. The major lectures him about funerals and responsibility while Bobby absent-mindedly plays with his lighter. The major says Bobby does not need to be afraid, which angers Bobby, who vehemently denies that he is afraid of a funeral.
At the station, Deputy Hawk reports that he has been unable to find the one-armed man, and Cooper tells him to keep trying. Cooper and Harry meet with Albert to receive his report. Laura Palmer had cocaine in her system and in her diary. Judging from marks on her wrists, she had been tied up on two separate occasions that night, and it looks like the killer kissed Laura after she was dead. There were also claw marks on her shoulder, which Albert presumes are from a small animal. Finally, there was a partially digested object in her stomach that could not be identified, but FBI forensics is currently working on producing a recreation of the strange object. Harry excuses himself to attend the funeral. Albert hands Cooper a report concerning the assault on his person; Cooper refuses to sign it and lectures Albert on the locals' value of life.
Elsewhere, Audrey is spying on both her father in his office and Dr. Jacoby as he tries to coax her brother Johnny into taking off his Indian headdress before Laura's funeral.
Meanwhile, Laura's funeral is underway. James arrives at the ceremony late, watching from a distance. After the Reverend's speech, Bobby starts angrily shouting at the guests, accusing them all of being hypocrites who knew that Laura had serious problems yet never did anything to help her. James intervenes, and the two begin fighting, having to be separated by their families. All of a sudden, Leland breaks down with grief and jumps on Laura's casket as it is being lowered into the grave, sobbing uncontrollably, with Sarah desperately begging him not to ruin this too.
That night, Cooper, Harry, Hawk, and Big Ed meet at the Double R Diner. Truman explains that someone has been smuggling cocaine into town; he suspects that Jacques Renault, bartender at the Roadhouse Bar, is involved. He also explains that the woods around the town seem to contain a "darkness" and reveals that there is a secret society of men gathered to stand watch against this, the Bookhouse Boys. Truman and the others bring Cooper to their headquarters, where James has Jacques' brother Bernard bound and gagged. They captured him after he crossed the border that morning with an ounce of cocaine. He denies being a mule and says the cocaine was for personal use. Bernard tells them to talk to his brother rather than him, and Cooper says he does not believe that Bernard would tell them where and when to find Jacques.
Elsewhere, Jacques realizes his brother is in trouble and calls Leo for help. When Leo leaves, Shelly hides a gun in a secret drawer along with the bloody shirt.
Back at the graveyard, Cooper watches the new grave, and Dr. Jacoby, wearing a hat and cloak, approaches with a garland of flowers. Cooper says he did not see Jacoby at the funeral. The psychiatrist admits that he does not actually care about the problems of the townspeople, but Laura changed all that, and he wants to help the investigation however he can.
Meanwhile, Josie tells Harry that Catherine is scheming to take over the mill. Josie knows there are two account books, one fake and one real, but cannot locate the real one Catherine has been hiding. She asks Harry if it is possible that someone killed her husband so that Benjamin could have the land and asks if they will kill her too. Harry reassures her that he will help her however he can.
Cooper and Deputy Hawk sit in the hotel while people dance, discussing the existence of the soul, with Hawk sharing a few Native American legends on the subject. Leland stands among the dancers, smelling the air. Leland tries to get someone to dance with him and has a breakdown. Cooper and Hawk pull him up and take him home.
Tropes:
- Ancient Tradition: While "ancient" is stretching it, the Bookhouse Boys are a secret society devoted to fighting the darkness in Twin Peaks.
- Black Comedy: Leland's actions during the funeral are horrifying but also hilarious as they Cross the Line Twice.
- Evil Twin: Inverted with Maddy who is identical to Lara Palmer except with black hair and glasses.
- Jerkass Has a Point:
- Albert Rosenfield's actions are beyond aggravating, but he's right that burying Laura Palmer's body now could keep valuable clues from being revealed, clues that could save lives in the future.
- Bobby's rant during Laura's funeral contains a lot of truth.
- Jerk with a Heart of Gold: Albert Rosenfield has a horrible personality but is genuinely devoted to getting justice for Laura Palmer.
- Prematurely Grey-Haired: Leland's hair turns white overnight due to his grief.
- Vigilante Man: The Bookhouse Boys serve as this in addition to more esoteric functions.
