As the second episode of Lockwood and Co. unfolds, Lucy finds herself immersed in an ethereal underwater realm, confronting a captivating young woman with fiery red hair. The vision is fleeting, yet the woman bestows upon her a gentle offering of flowers, before Lucy abruptly awakens in a sterile hospital room. A nurse, her voice laced with indifference, informs Lucy that her mother was notified but seemed preoccupied, neglecting to inquire about her daughter's whereabouts. Urging her to remain in bed, Lucy ignores the advice, rising to seize her clothes and snatching a sprig of flowers from a vase, determined to venture forth.
Stepping into a chamber that resembles a ghostly gallery, Lucy beholds a haunting sight—patients trapped in hospital beds, their spirits imprisoned and their bodies sustained by the relentless pulse of machines. Meanwhile, at the police station, Inspector Barnes lays into Lockwood, brandishing a document that exposes the agency's dire financial straits: a staggering debt of $60,000 owed to Mrs. Hope for the unfortunate incineration of her abode. Their reckless decision to forgo iron chains has rendered their DEPRAC insurance null and void, leaving Lockwood with an ultimatum: pay up or risk the collapse of their agency.
Returning home, Lucy finds herself under George's relentless scrutiny, his voice laced with reproach for her impulsive actions. Amidst the cluttered table, her eyes latch onto a clipping featuring the tragic face of Annabel Ward, her murder a haunting reminder. The trio's heated discussion about Lockwood's hasty decision is abruptly interrupted by his arrival, his exhaustion palpable as he seeks solace in sleep and a meal prepared by George.
Later, Lucy's gaze once more drifts towards the clippings and the enigmatic ring, transporting her once more to that enchanting underwater realm. George's voice, like a jarring bell, snaps her back to reality, discovering herself fully dressed, inexplicably seated in a bathtub. She hastily records a heartfelt message for Norrie, her voice tinged with longing as she confesses that the ghostly encounter evoked memories of her dearest friend.
The following morning, George confronts Lockwood with a newspaper article detailing their latest mishap, his concern for Lucy's well-being spilling over into a suggestion to dismiss her before she plunges them further into turmoil. Lockwood, however, retorts with a wry smile, pointing out George's own checkered past at the Fittes agency, asserting that the concept of 'normal' is but a fleeting illusion.
In the solitude of her bedroom, Lucy drifts off to sleep, the ring clasped tightly in her hand. As it slips from her grasp, Annabel's spectral form materializes, hovering menacingly above her. Lucy jolts awake, adrenaline pumping as she scrambles to flee the room. Rousing Lockwood and George, the latter armed to the teeth, they race back to Lucy's chamber, their combined efforts finally succeeding in banishing the ghost back into the confines of the enigmatic ring.
Lucy endeavors to articulate her reasons for taking the enigmatic ring, her heart heavy with a profound bond to Annabel and a fierce desire to seek justice on her behalf. With renewed determination, she proposes a final attempt to forge a connection through the ring, convinced it will serve as undeniable proof of their pursuit. George nods in assent, and together, they embark on this mystical journey.
Seated in a chair, Lucy once again closes her eyes and allows the ring to become a conduit, transporting her into the realm of Annabel's emotions. She feels the warmth of a once-blissful romance, its sweetness slowly curdling into bitterness as jealousy and rage consumed the man, his hands tightening around Annabel's throat in a final, deadly embrace.
As the intensity of the vision fades, Lockwood's voice pierces the silence, reminding them of their dire financial predicament—a looming debt of sixty thousand pounds to Mrs. Hope. He urges them to set aside their personal quest and focus on procuring lucrative cases to alleviate their financial woes.
Just as their focus shifts, a call from Inspector Barnes shatters the moment, ordering Lockwood to terminate Lucy's employment due to her lack of proper qualifications, rendering her employment illegal. Yet, in a swift turn of events, Lockwood's mind races, realizing they can harness Annabel's tragic tale and her notoriety as a means to secure the funds they so desperately need. Lucy, however, insists her name remain shrouded in obscurity.
George leads them to the dusty archives, where the truth begins to unravel. They uncover that Annabel once graced the stage in a renowned production of 'Hamlet,' embodying the role of Ophelia with haunting poignancy. This revelation illuminates the significance of the water and flowers Lucy had sensed during her connection, mirroring Ophelia's tragic tale. Their suspicions turn to Hugo Blake, Annabel's co-star and romantic interest, who may have been the hand behind her untimely demise.
Just as they begin to piece together the puzzle, Quill Kipps, a cunning Fittes agent and Lockwood's rival, appears, taunting them with words laced with malice. Lucy, unfazed, retaliates with a stark reminder of Kipps' team's high mortality rate, prompting him to warn her of Lockwood's fate—that all who cross his path eventually depart. The tension escalates as both men draw their rapiers, Lockwood's quick wit prevailing as he deftly redirects Kipps' weapon, embedding it into the ceiling.
Exiting the archives, Lockwood assigns Lucy and George to take a break over lunch, while he attends to other matters. Over a shared pizza, George confides in Lucy, revealing his unconventional upbringing amidst a family of engineers and the circumstances that led to his dismissal from Fittes for his relentless questioning. Similarly, Lucy opens up, sharing her own harrowing experience and the unjust burden of blame for her friends' demise.
Meanwhile, Inspector Barnes watches a news broadcast, where Lockwood discusses the Annabel Ward case, his voice resonating with confidence as he credits Lucy for a groundbreaking discovery, unaware of the intricate web of deceit and determination weaving around him.
At her abode, Lucy's anger boils over at him, fueled by his disobedience of her direct instructions. Her ire intensifies when he labels her as their greatest asset, inadvertently revealing that she's merely viewed as a monetary commodity. With a huff, she storms out of the room. Inside, George confesses to Lockwood his error, prompting Lockwood to recall that it was George who initially sought to dismiss Lucy, only to reverse his stance. Lockwood muses aloud about the fallibility of his own judgment, unaware that Lucy, eavesdropping outside, takes offense and departs just as he mentions intervening in an interview to thwart Barnes' plan to oust her.
Lucy seeks solace in the training room, unleashing her pent-up emotions. Shortly thereafter, the team receives an urgent summons to DEPRAC. Barnes has apprehended Hugo Blake and now enlists Lucy's unique bond with Annabel to uncover incriminating evidence. Lucy retorts that justice doesn't operate on such quid pro quos, only to be startled by Blake's menacing presence through the one-way mirror. Barnes, unfazed, hands Lucy a train ticket and disparages Lockwood as a charlatan, advising her to retreat to the comfort of her home.
On the cab ride back, Lucy halts the journey midway, confronting Lockwood with her resignation. He chases after her, determined to clear the air. She accuses him of miscomprehension and harboring a secret agenda to dismiss her. Lucy's emotional turmoil overflows, confessing that she feels engulfed by despair, even contemplating the unthinkable. Lockwood listens intently, affirming that such notions are far from the truth and emphasizing her invaluable contribution. He reveals that the media interview was a strategic move to deflect Barnes' attention away from her. Lockwood insists that they forge their own path, unbound by external pressures. After extracting a solemn promise of honesty, Lucy relents and agrees to stay.
Elsewhere, a hooded silhouette infiltrates the house undetected by George. Upon their return, Lucy and Lockwood find the front door sealed from within, forcing them to breach through a window. Lockwood engages the intruder in a fierce struggle, while Lucy races to the basement to free George. United, they confront the trespasser, who flees in haste. George fears the intruder has made off with Annabel Ward's ring, but Lucy surprises them both by producing the locket, which safely harbors the ring beneath her shirt, a testament to her cunning and resourcefulness amidst the chaos.
