One of the bereaved, Tina, a friend of Lisa's, is packing up all the dolls from the funeral when she comes across Lucy Doll. Lucy Doll starts yammering on about how Tina is "Not my momma." Real grade-A creepo stuff. Anyway, Lucy Doll seduces Tina, and uses her as her transporter.
Mr. Lin comes clean about the doll. He and Lisa did conceive a child, but it was a stillborn. So on a trip to Thailand he got her a luk thep, which is a Thai good luck charm. Now it's worthless and scary: so he allows Bea and Calvin to get rid of it.
But they don't. They give it to Tilly who, reluctantly, subjects it to some tests. She finds that the doll is really the remains of a mummified baby that have been encased in that miniature body! Oh, heavens to Lucy!
May has done some digging on Eric and Tina's background, and informs Calvin: turns out, they were hitting it together. That doll might contain the remains of Eric and Lisa's stillborn child. And now it's trying to wreak vengeance on Eric on behalf of its mother. It already took down Tina.
Isaac returns to the Mayor's office, unwilling to settle. He wants to kill this infernal. But maybe they make a deal instead? See, Bickley wasn't so hot on being the Dredge's errand boy — and now he's flaunting his freedom. They come to an agreement: they'll stay out of each other's ways, unless working together proves mutually beneficial. Very adult.
Eric confesses to killing his wife, and to shoving his dead daughter into the Lucy Doll. That's the admission of guilt Calvin needs. He then goes to town on Lucy, and aims to give her a few more air holes to breathe through.
But he can't get there just yet, as Eric has plans to do away with Calvin before he can send him to jail. But Calvin prevails as the superior fighter, and drives Eric's knife into his own back. Calvin thinks twice about blowing the doll to porcelain pieces.