Kevin accepts the reins at the Banner to with congratulations from a jubilant Asa and a somewhat wary Viki. Kevin's plans for the Banner scare Viki and she warns Asa not to encourage him in abrasive tactics.
Troy watches Blair and Kevin with disgust as they reminisce over old times, he leaves and runs into Nora and Flash. Nora is polite but curt, and somewhat cryptic to a curious Flash.
Walker reveals to Mitch that not only is he not going to help him, he is taking all of his assets for himself. A furious Mitch is led from the visiting room as he screams at Walker. Walker cons Mitch's Lawyer, Ms. Williams into believing that Mitch is truly criminally insane and that he only wants to do what is best for Mitch, insisting that he will take three jobs to pay her for her services. Mitch is so angry that he can not convince Ms. Williams that Walker is trying to get him, he fires her.
As most of the Buchanan clan gather under one roof, Natalie inadvertently lets Viki know that Flash is Sarah Roberts. Viki tries to welcome Sarah into the family. Sarah asks that she not let her mother (Tina) know where she is. Viki tells her that she does not know how to get in touch with Tina, but she will let Cord know that she is with her family.
Lindsay slips out of Saint Ann's looking for Jen, who she believes is in serious trouble. She goes to Troy's loft apartment and stares at the window. Troy arrives and tells Lindsay, not to worry because Mitch is locked up for good. Their passion ignites and they heat up the docks. Lindsay leaves before all the clothes come off.
Walker calls Dorian and tells her that Blair has called off their meeting, and then tells Blair that Dorian has done the same [so that he can be alone with Blair]. They talk about his future with the Star, but Blair has to leave for a moment to check on Starr.
Flash is wandering the docks, happy that she is being accepted by family. As she turns to leave she bumps into a package and a hand is revealed.
When Blair returns, she questions a wet Walker about his whereabouts. He tells a skeptic Blair he only went to the car to close his windows.
A uniformed police officer paces back and forth behind crime scene tape strung around the dock. Red flashing lights whip around the brick buildings as Nora, Bo, Flash and Riley walk towards the trash bag unveiling. But an elaborately feathered Mardi Gras mask still covers the corpse's face. Officer Vega removes it carefully wearing latex gloves. The face belongs to Mitch Laurence.
"You've got to have a heart to have a heart attack," Bo observes. Various killing methods are explored at the scene, but the forensics officer, sniffing an elaborate gold goblet, is leaning towards poisoning. Further investigation reveals scuff marks on the dock that seem to match Mitch's shoes. A theory is taking shape: Mitch was killed and dragged to this location, propped up on a throne-like chair strikingly reminiscent of the set furniture from the theater. Antonio raises a key question, "How'd the killer get him out of his cell?" A jail officer is "still unaccounted for..." Mitch's body is taken away and Bo finds one last piece of evidence: a blue silk scarf.
Troy wakes in Lindsay's bed after their lovemaking. He hides when a liquored-up Jennifer creeps in to tell her mother she got married. After Jen leaves, Lindsay asks, "Troy, why did you come back?" He thoughtfully answers, "Because you were right, Lindsay. We deserve each other. It's our little secret." He closes the door discreetly behind him. Lindsay awakes a short while later realizing her scarf is missing. A nun inquires about a patient hearing a man's voice in her room. At the docks, Troy searches fruitlessly for his lover's long flowing neckerchief.
In Atlantic City, Asa tracks down his limo thieves, Max and Roxy. Another chauffer bites the dust. Despite Roxy's protests about "gamblers' unanimous," Max concocts a crafty bet: a poker game with very high stakes. If Max wins, Asa must propose to Renee again, this time properly and romantically. If Asa wins, he demands that Max marry Roxy again! Roxy makes a call to Renee who scurries down to sin city to meet them. After a game of seven-card stud, Max is the victor and Asa fashions a heartfelt proposal. The lady's affectionate reply, "Why the hell not?"
An odd assortment of the Buchanan clan still lingers in The Palace dining room. Future murder suspects mill about evasively describing their evenings. Nora returns to tell Jessica that her biological father is dead and gingerly asks for her whereabouts for the evening. But Sr. ADA Daniel Colson is less tactful and insists on her alibi because he saw Jess leave the Buchanan party for a while and return. Nora acts as a buffer while Jess gives her brothers the news and faints into Antonio's arms. She comes to and Bo interrogates all the possible suspects. Joey spies Jennifer on the terrace sucking down a bottle of vodka. He insists on a taxi, ignoring her loopy lasciviousness. Kevin and Daniel Colson schmooze suspiciously as Nora looks on from the background. Dorian is allowed to leave with the alibi that her car broke down. Blair fumbles through the contents of her purse and a feather falls out. Antonio picks it up with a napkin, and her questioning begins with her earlier visit to the prison. Bo demands word-for-word details of her final conversation with Mitch. But Blair defiantly refuses, "No! Hell no. You falsely accused me once before, Bo, and if you do it again, I will slap this town with the biggest lawsuit that will bankrupt it!"
As Flash struggles to control her coughing, she's warned by the producer, Claude, that Midnight Logic will only have one chance to record their CD. Suddenly, Asa bursts in and berates her even though she doesn't realize who he is. She finally learns he's her great-grandfather after he accuses her of looking just like her wacko mom, Tina. He demands that she return to her family as her fellow band members come to her rescue. She wants to finish up their set first, she tells him. The group ends their session on a positive note, with the guys all worried about Flash's health.
Walker meets up with Dorian at the Palace where they discuss Blair and their alibis for the previous evening. They stew over the Banner's latest headline which Dorian surmises is Kevin's doing. Walker suggests it's just a gimmick to sell papers.
Blair storms into the Banner office, ranting and raving over the morning's headline, accusing her of being the suspect in Mitch's murder. She knows that Viki would never do such a thing and promises Kevin that she'll be calling her lawyer. Kevin remains cold, unfeeling and businesslike even as Blair laments how Starr will feel when news of the headline gets out. He wants to buy the Sun and wants to take her out to dinner for further discussion. She suggests he call Kelly.
Lindsay recalls her night of passion with Troy as Jen returns as promised. She wants to know why Lindsay's clothes were all wet in the middle of the night and doesn't buy her mother's excuse of being out in the garden. When Lindsay learns of Mitch's death, she swears that she had nothing to do with it but instead expresses her dissatisfaction over Jen's marriage to Rex. She's less than pleased over Rex's family history, though Jen figures she can hardly say anything being in a mental hospital. Lindsay pumps her daughter for information on how the couple met and what Rex is doing with his life and is quite upset to learn he was kicked out of school. Jen should have someone like Joey, she states, but Jen is convinced that she knows what to expect with Rex. Jen reverts back to Lindsay's whereabouts the previous evening and when Lindsay asks how she could kill someone in jail, Jen realizes that her mom is innocent as she recounts to her that Mitch was found on the dock.
Nora looks at shots of Mitch as the assistant DA, Daniel, demands to know why Blair hasn't been arrested. All of the evidence is pretty weak and circumstantial so far, she states, and furthermore, no one believes that Blair could have dragged the heavy body and chair or lifted any of it to place it out on the dock. They will need evidence and the autopsy results first, she continues.
As Bo continues to sift through possible evidence at the murder site with Antonio, a body is spotted floating in the water. Antonio dives in and retrieves Snelling, the police officer who was missing from the jail. They find a wad of money in his pocket and deduce that he was bribed to free Mitch from his cell and then murdered. An empty water bottle is also retrieved but the men notice that it was previously filled with wine. Later, Bo also finds a hypodermic needle.
Blair arrives at the Palace as Dorian is trying to convince Walker to stay in Llanview and on the Sun. Blair announces that she prefers to change the paper a bit, make it more classy and accurate. Walker finally agrees with her ideas and tells her he'll stay on. Blair demands that things be done her way.
Daniel learns that there were wine and arsenic remains in the body along with broken capillaries in the nose, indicating that it was held as the victim was probably forced to drink the concoction. It's decided that Blair would never have been able to do that herself. Evangeline arrives, having seen the morning's headlines and fills the DA's in on her last conversation with her client. Mitch thought that Walker associated with the devil, he didn't make any sense and she was fired. Asa shows up looking for Bo and is upset that he found Flash a.k.a Sarah, hanging out singing in a garage. Nora is concerned to hear about the singing and takes off. Daniel thinks it's time there was a change in leadership, that things at the station are too lax. When Bo finally arrives, Evangeline refuses to discuss her contact with Mitch again as Daniel demands action from Bo. Mitch was injected with something, probably a tranquilizer, Daniel is informed. Bo finally gets him to leave his office, warning Antonio that there could possibly be another murder soon. He can't wait for Hank to return to town.
Walker pays Kevin a visit and the new Banner editor informs him that he's done some checking on Walker's credentials. He'd like Walker to work for the Banner instead of the Sun and has many perks to offer. An enthusiastic Walker pretends to be interested but retorts that someone like Kevin could never understand that Blair needs his help. And besides, there's "more room for advancement," especially if Dorian is also on the "list."
As Flash and Riley finish singing, Nora marches in and calls Flash on doing what she wasn't supposed to do. Flash reminds everyone that singing is her life. Nora challenges Claude on the doctor and medication and decides to see if the steroid spray was prescribed legally, informing the sleazy producer of her association with the DA's office. Of course the doctor's phone number has been disconnected. She suggests that someone who care about Flash get her checked out and later, an upset Riley offers to take her to the doctor. She sounded great by the way, he says. The best she ever has sounded, he emphasizes.
Blair and Dorian discuss the cache of needles in Blair's closet, which causes each of them to suspect the other in Mitch's murder.
Lindsay remembers that she left her scarf on the dock.
Bo, Antonio and Nora discuss the case. It definitely appears to be a case of revenge, with Dorian and Blair heading the list of potential suspects, along with Jess and Lindsay. Nora suddenly recognizes the scarf, realizing that it belongs to Lindsay.
R.J. explains to Evangeline that he has plans for Rex. Changing the offer, R.J. convinces Rex to take 15% and a management position for his contribution to Ultraviolet. While Evangeline and R.J. are looking over the plans for their new club, Keri interrupts to inform him that she is going to do whatever it takes to get Antonio back. R.J. tries to change her mind, but Keri is determined to fix things for Jamie.
Natalie questions Rex's motives for marrying Jen. When she informs him that Jen is using him to get back at Joey, Rex admits that he knows that and is certain that Jen will get over him.
Daniel and Nora butt heads when she fails to call and inform him of a development in the case against Mitch. As Nora is asking Troy if he saw anything from his apartment, Daniel interrupts and informs Troy that Mitch was injected. Bo shows Lindsay the scarf, but she denies that she knows how it got there. When Troy gets to St. Ann's, he demands that they will never be together again. As he is leaving, Troy runs into Nora, who wonders why he was visiting Lindsay. Upon seeing Lindsay, Nora reminds her that all of her secrets have come back to haunt her.
Natalie and Cristian try to stop Antonio from seeing Jessica, but he informs them it is official police business. At the police station, Cristian tries to stop Antonio from speaking to Jessica, but Jess agrees. When Antonio tries to make the conversational personal, Jess turns it back to Mitch's murder investigation and quickly realizes that Antonio thinks she killed her father. Antonio denies her accusation, but Jessica storms out anyway. At their house, Cristian is confused when Jessica makes a comment about seeing Mitch. Later, Cristian tells Natalie of his suspicions that Jessica knows more about Mitch's murder than she is telling.
Upset, Antonio goes to see Rae to get her advice. When he gets home he finds Keri and Jamie waiting for him. Keri again apologizes for lying to Antonio and is happily surprised when he assures her that he understands.
In the special 4th of July episode, Starr and Matthew debate the magic of fairytales while they prepare for the Fairytale Festival. While Nora assures them that magic is real, the citizens of Llanview begin to fantasize.
In Matthew's fantasy, Rae appears out of a lamp willing to grant him three wishes. When his first wish is for him and Nora to live in a palace, he is enraged when they are transported the Palace Restaurant. His second wish for his mother to have peace and quiet turns Nora into a nun. For his last wish, Matthew wishes that Bo Buchanan would be his dad.
Meanwhile, Jen wonders what it would be like to be Little Red Riding Hood. On the way to see her mother she runs into Joey, who reminds her that she always takes the wrong road. At St. Ann's, Jen pulls back the blanket on her mothers' bed and finds Troy waiting for her. When Troy goes after her, Jen is thrilled to have Joey save her.
In a desperate attempt to be thin, Marcie finds herself feeling more like Cinderella with Rae as her fairy godmother. At Foxy Roxy's, Nigel, Roxy, and Starr work their magic and turn her into a beauty. As Marcie prepares to leave for the ball, Rae stops her and informs her that there is a catch; she has to have her dress back by midnight or pay $20,000. At the ball, even though Max and Gabrielle choose Jen for Al, he picks Marcie. Realizing the time, Marcie rushes out of the ball, leaving behind a slipper. Back at the diner, Marcie finds a happy ending stick and makes a wish for Al to find her.