WARNING: If you don't want to know what happened in this episode, don't read this photo recap!
So, some very gross stuff is going down in the town of Garrett. And both Alice and Louise are terrified by what they've just witnessed. A dinner party where, seemingly, Izzy's mother was eaten, and where Alice was dragged off and Mr. Peach drilled open her head and told her she was going to go insane.
Meanwhile, Alice's sister, Zoe, who had the same experience as Alice and believes that her schizophrenia is cured - is visited by Mr. Peach, who tells her that she's healed but still weak and changing. He says he'd never hurt her. And he also says she'll feel better if she eats something.
After Louise and Alice bump into Officer Luke in the woods, they return home to find her co-worker Nathan poking around and asking about why Alice hasn't come to work, and Alice talks to her sister and finds out…uhm…her leg is bloody. But why?
Meanwhile, Officer Luke has caught wise to the fact that his Police Chief father is complicit in whatever transfer happened that let younger Mr. Peach go - after he ATE another person! Officer Luke's father tries to talk him into ignoring things. But why?
Officer Luke seeks out Louise and confesses that his father might be complicit, and she says the Peaches seem interested in Alice and Zoe. As they rush out to see where they are, the younger Mr. Peach goes dancing by! It freaks them out, and Officer Luke leaps into action.
Alice confesses to her sister: she's worried that when the elder Mr. Peach took her into that room and drilled into her head, he woke something up. And... seems like she's right because a scary apparition verson of Alice climbs over the table behind her…
Alice, it turns out, has long worried that she'll develop schizophrenia. And she's absolutely convinced that it is now possible. As she raids a medicine cabinet, she sees a spidery version of herself climbing toward her. She runs!
And that's when Alice finds a note saying that Zoe has chosen to join them at the top of that crazy staircase. And that she's welcome to come along, too. She rushes out to save her sister, and gets a call from the collections people. (Which is a weird call to take, but...it seems connected somehow.)
As Officer Luke drives the younger Mr. Peach back to the police station - there's still a lot of taunting. Peach keeps calling Luke a mouse. And in this case a "ghost mouse." Knowing that he won't be able to bring him to justice, Officer Luke shoots him.
He touches a part of her brain and Alice remembers seeing her mother murder her sister, and then he tells her that she has schizophrenia in her brain. He says "come up and join the family. Bring your sister." Because, they remind him of his dead daugthers. And the plot thickens...