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Now that Robert Peach has been killed, his brother Aldous has come looking for him and brought along his two terrifying goblin-children. The police chief takes Aldous out to the grave to prove that he killed his own son in retribution, but Officer Luke’s body is gone. Meanwhile, in the Peach house, Alice is going dangerously down a road toward a ceremony that will remove her schizophrenia. Zoe remembers her own ordeal and tries to talk Alice out of it. In the process, Alice discovers that the Peach family is trying to sacrifice Izzy to the god they keep in a room upstairs.
Meanwhile, back in Garrett, Louise has saved Officer Luke’s life and the Police Chief has a change of heart. To save Louise and Luke, the Police Chief kills Aldous Peach and his children, but then learns they have to have to cut off their heads to make sure they stay dead, like Robert. Once they do that, the police chief insists that they leave town, but Luke and Louise know that the rest of Garrett is still in danger. Thus, Officer Luke shoots his father.
Alice goes through with the ceremony as Zoe finds Izzy and saves her just in time. When Alice reveals this to the Peach family, Mr. Peach freaks out, and as he tries to apologize to the god for losing the sacrifice (Izzy), the god takes one of his children and eats them. Mr. Peach vows to bring Izzy back.