Keith and Cheyenne are in front of the papers, trying to get them to report Cheyenne as Abel Koontz's alibi. The paper guy is skeptical, but Keith hands over a heap of evidence.
Back at the Mars household, Lianne and Veronica laugh and prepare dinner, while Lianne swigs "water." Cut to Keith looking at an envelope - Veronica's paternity test results. Then Cliff enters, dubious about the fact Keith wants to sue the Kanes. Keith tells him that they'll settle.
At school, Wallace and Veronica discuss the now-public proof that Abel Koontz didn't kill Lilly - as do Dick and Beaver. Beaver is starting to panic, and Dick tells him to chill out, saying: "To the grave man. That's what we said."
Back at Kieth's office, he has to break it off with Alicia, due to Lianne's reappearance. Veronica enters and sympathises, but says Alicia has to understand.
At the Kane household, the Kanes are preparing for a dinner with the governor, then Duncan confronts his parents about the proof Abel didn't kill Lilly. Jake then tells him the "truth" - he had an epileptic fit and killed Lilly. Jake tries to comfort his son, saying it wasn't his fault, and Celeste gives the news Keith Mars is suing.
At school, Beaver tells Veronica something important - the weekend Lilly was killed, he, Dick and Logan all went to Mexico, but the day she died, Logan was sure she was seeing somebody new, so he got up early, and drove back to Neptune to see her.
At the office, Veronica tells Keith this, as well as the fact Beaver said Logan bought Lilly a shotglass saying "I got baked in Esenada." Keith remembers that the shotglass was in Lilly's car, proving "Logan found Lilly."
At school, Veronica runs into Logan, and pretends he's not a suspect. She apologizes for her freakout last episode, and they talk of Lilly's murder - Logan says that he doesn't want to think it could have been Duncan, but "it's the only thing that makes sense." Logan leaves, and Veronica calls her father, telling him about Logan trying to pin it on Duncan. Keith tells her the border control people caught Logan coming back from Tijuana hours before Lilly's death. Veronica hangs up, and Weevil's appears. He heard everything, and now is going to go after Logan.
Keith, Cliff, and the Kanes discuss the suing. Celeste offers to pay Keith the $50 000, but says it's on the condition Veronica relinquishes any claim to the Kane estate. Cliff is confused, but Keith gets it, and says he's willing to make the deal - but it's Veronica's choice.
At the office, Keith gives Veronica the choice - she signs away her claim to their estate immediately. Keith then breaks the news to her - he is her father. The hug and rejoice, but then they bring up Lilly's murder - they decide to go to the authorities with the blowing of Logan's alibi.
Weevil if off trying to kill Logan, but before Logan notices him, the deputies show up and arrest Logan. At the station, Sheriff Lamb asks Logan why he lied, and Logan avoids the question. He asks to make his phone call, and calls Veronica. Lamb laughs, and tells logan Veronica was the one who told him Logan wasn't in Mexico.
Later, Keith calls Lamb, who tells him they let Logan go, seeing as they didn't have much. He also tells Keith he's pretty sure Logan and Veronica are dating. The call ends, and Keith asks Lianne where Veronica is - she took Backup out to the beach.
On the beach, Logan confronts Veronica, who tells her he could never have hurt Lilly - and that he wrote Lilly a note that would prove it. Keith runs up, yells at Logan, and takes Veronica home. Veronica thinks about this letter, and thinks if Lilly kept it, she'd have kept it in her air vents.
Veronica disguises herself as a waitress to sneak into the Kanes' party for the governor, and nervously takes a swig of Lianne's "water" - ie. vodka. Near tears, she calls Lianne's rehab.
At the party she sneaks off, into Lilly's room. Duncan finds her, and starts to scream about his "guilt", near-hysterical. Then Veronica tells him she doesn't think it was him, she thinks it was Logan. She tells him she's looking for Logan's letter, but in the air vent, the only find some tapes. They go off to play them.
On the first tape, dated for the day Lilly died, it shows her in the Echolls' poolhouse, telling someone off-camera: "Come here, lover. Come earn your keep." Then, on the tape, Lilly notices something on the ceiling, and runs off camera.
Duncan and Veronica check the other tape, and see Lilly having sex with someone. It takes a few seconds, but they eventually the identity of this someone: Aaron Echolls. In shock, Veronica says she knows what happened.
In flashback; we see Lilly notice the cameras on the ceiling, and find the tapes. The steals them and leaves, and Aaron starts to panic when he sees the tapes gone. At her house, a clearly amused Lilly puts the tapes in her air vent, and goes outside to sun bake. Aaron storms in, and demands she give him the tapes back. She refuses, he loses his temper and whacks her over the head with an ashtray. She dies, and he throws the ashtray in the pool and runs. Duncan finds Lilly's body, and goes near-catatonic. Celeste and Jake find Lilly and Duncan, seeing Duncan covered in Lilly's blood and in the state which is generally the aftermath of one of his "episodes." They assume he killed her, and become hysterical.
Back in the present, Duncan asks if Aaron could really do it, to which Veronica brings up the beating of Dylan and Logan's abuse. She goes to take the tapes to her Dad, and Duncan promises to keep an eye on Aaron. Veronica then lets him off the hook for his other "crime" - she's not his sister.
Veronica calls her dad and tells him it was Aaron. She then tries to call Logan, who doesn't pick up - he is drunkenly teetering off the Coronado Bridge, where Lynn jumped. Weevil and the PC Hers find him, and Logan asks what they actually think they can do to him. Weevil replies: "I'll think of something."
Veronica gets a call from Duncan while driving, who tells her no-one's seen Aaron. Then she sees him - in the backseat of her car. She tries to reach for her taser, but he stops her, and takes the tapes. Seeing no other way out, Veronica crashes the car.
She awakens before he does, takes the tapes, and runs out of the car. She sees someone's house, throws the tapes on their roof, and knocks on their door, pleading for help. The occupant of the house notices her, but not before Aaron can get behind him, knock him out, then knock Veronica out.
When she surfaces, Veronica finds she is locked in a fridge, and given a walkie-talkie. Over the walkie-talkies, Aaron demands she tell him where the tapes are, and he'll let her out. She refuses, so he begins to pour gasoline over the fridge. He keeps demanding, and she eventually caves - they're on the roof. Keith then appears, and is jumped by Aaron. They get into a fight, and Aaron sets the fridge alight. Keith runs through the fire to save Veronica, but catches alight - she tries to extinguish the fire and pleads with him not to die.
Aaron runs, and tries to escape in Keith's car - but is stopped by backup. In the middle of the road, he is hit by a truck, and then Veronica shows up and pulls a gun on him. The police, an ambulance, and the fire department are called.
Both Aaron and Keith are sent to hospital, and Aaron is arrested. Jake shows up and screams at Aaron "You killed my daughter! You killed my daughter! You're gonna pay for it. I'll watch you fry, Aaron! I'll destroy your family and everyone you ever loved. You killed my daughter! You killed my daughter!" Jake is then arrested for obstruction of justice, and Veronica and Duncan's eyes meet.
At the hospital, the doctors tell Veronica she must go home and rest, but she says she won't let Keith wake up alone. They ask if there is someone they can call, she smiles slightly as says "Yeah."
At home, Veronica confronts Lianne - she knows she didn't finish rehab, and squandered Veronica's college money. Veronica then kicks her out.
At the hospital, Keith wakes up - and find Alicia by his side.
While leaving, Lianne finds the $50 000, and steals it.
Veronica sleeps, and in her dream, finds some closure with Lilly, who tells her "Don't forget about me, Veronica." Veronica is then awoken by a knock at the door. She answers it with a serene smile, saying "I was hoping it would be you." The screen fades to black before we realise who it is.
- Ax-Crazy - Aaron.
- Big Bad - Aaron.
- Calling the Old Man Out - Veronica to Lianne. Duncan to both his parents.
- Danger Takes a Backseat
- Driven to Suicide - Logan
- Mistaken for Murderer - Poor Duncan. Even he mistakes himself for the murderer.
- Papa Wolf - Keith literally runs through fire for Veronica.
- The Reveal
- Series Fauxnale - After solving Lilly's murder, fans wondered how they could pull off a season two if they got picked back up. Turns out they got a whole new mystery.
- Shout-Out - The method of revealing the culprit is very similar to how it was done in the first season of Murder One, one of the first shows to experiment with a season-long story arc.
- Turns Red - The rather ridiculous amount of punishment Aaron Echolls soaks up even before his fight with Keith makes you wonder why Keith, trained to actually fight and bring down people quickly as a cop and who would have kept his skills sharp by chasing down bail-jumpers as opposed to just making it look good on camera, like Echolls didn't make shorter work of him. Oh, right. Aaron was angry.
- You Killed My Daughter