Episode 3 of School Spirits kicks off with Maddie trailing Mr. Anderson and Simon to the parking lot. Mr. Anderson presses Simon to return home and keep mum about their earlier conversation. Simon queries about his presence there, but Mr. Anderson remains tight-lipped. As Maddie watches Mr. Anderson drive away, hazy memories of an accident surface in her mind.
Meanwhile, Maddie's mother, Sandra, confronts Sheriff Baxter at his home, accusing him of neglecting Maddie's case. Baxter assures her that they are doing their utmost with limited resources, and she departs. Xavier, defying his father's wishes, decides to return to school, much to the dismay of his peers.
At school, Maddie is perplexed by Simon's belief that Mr. Anderson has some connection to her demise. She confesses that she is close to Mr. Anderson and reveals that he once gave her his number. Simon is startled to hear about this friendship and asks Maddie to keep tabs on Mr. Anderson. She is also thrilled to have discovered another secluded spot in the school where she and Simon can communicate freely.
In a flashback, Maddie recalls how Mr. Anderson reached out to her and shared his struggles with an alcoholic father. She felt a kindred connection with him, understanding her own complexities with her mother. It was during this vulnerable moment that he entrusted her with his phone number.
Simon meets with Nicole and raises the eyebrow-raising question of why Mr. Anderson would give Maddie his number. He voices his suspicions about the teacher's odd behavior, and Nicole mentions something about his car. Simon enlists Nicole's help to sneak into his class and steal Mr. Anderson's car keys. With trembling hands, he searches the car and is horrified to find the phone piece he had given to Mr. Anderson. He wonders why the teacher never turned over such crucial evidence to the police, and his suspicions about Mr. Anderson deepen.
Meanwhile, Maddie convenes with the familiar spirits at the Afterlife Support Group Meeting, where Mr. Richard suggests an unconventional outing. A field day for the spirits translates into an explosive release of pent-up emotions, as they unleash their fury by smashing objects around the school. Maddie, particularly tense given her quest to solve her own murder from the afterlife and a recent spat with Simon over Mr. Anderson, eagerly anticipates the release.
Maddie's displeasure is palpable as she confronts Simon about his unauthorized search of Mr. Anderson's car. She cannot fathom the idea that he could be her killer, recalling his heroic act of covering up an accident caused by her drunken mother. Simon, angered by Maddie's apparent betrayal, feels betrayed by her lack of trust and her choice to seek help from Mr. Anderson instead of him. The tension mounts as Maddie vows to solve the murder alone, declaring her independence from Simon's assistance.
The field day serves as a cathartic outlet for Maddie, allowing her to purge some of her anger and frustration. After a heartfelt conversation with Rhonda, whose life was tragically cut short by her school guidance counselor, Maddie begins to question her initial assumptions about Mr. Anderson.
Meanwhile, Nicole receives a mysterious message from Maddie's phone, sparking fears that Maddie's hiding place has been discovered. In a panic, she rushes to their old hideout, unaware that Xavier is silently trailing her. Upon arriving at the hideout, Nicole's initial relief turns to disappointment when she fails to find Maddie. Her alarm turns to cautious curiosity as Xavier approaches, but his assurances of good intentions gradually ease her fears. As they chat, Nicole finds herself increasingly persuaded of Xavier's innocence.
Encouraged by his sincerity, Nicole decides to reunite with Sandra, Maddie's mother, and join their efforts to search the woods. Deeply missing Maddie, who was her only supporter in her aspirations to become a painter, Nicole throws herself into the hunt with renewed determination. Their perseverance pays off when they stumble upon Maddie's ticket and boot prints, providing a crucial lead in their investigation.
Back at school, Simon confronts Mr. Anderson, demanding to know why he has withheld crucial evidence. Mr. Anderson confesses his mistrust of the police and his desire to protect Simon from suspicion. He argues that the police might suspect Simon if he continues to amass incriminating evidence, leaving Simon torn between gratitude and distrust.
After her conversation with Rhonda, Maddie heads to the library, her heart pounding with curiosity. She flips through the dusty pages of past yearbooks, searching for clues. Suddenly, her eyes lock on a photograph that sends a chill down her spine: Mr. Anderson's classroom is the same room where Rhonda met her fate.
Determined to uncover more, Maddie delves deeper into the mystery. She learns that she can somehow communicate with Simon in places where former students have perished. Simon reveals to her that these rooms and areas are known as the scars of the school, bearing the invisible wounds of tragedy.
Their relationship mended, Maddie admits her folly in blindly trusting Mr. Anderson. She asks Simon for his assistance, and together, they bide their time until after school hours. Stealthily, they sneak into Mr. Anderson's classroom, hearts thumping in unison.
As they hide, Mr. Anderson returns to the classroom, and Simon is forced to conceal himself. They eavesdrop on his phone conversation, where he tells the other party that things should be done his way from now on. He mutters about regretting giving Maddie money, but Maddie is puzzled, as she doesn't recall asking him for any cash.
When Mr. Anderson departs, they cautiously explore his classroom, only to stumble upon a hidden stash containing bundles of cash. Their discovery sends shockwaves through them, revealing a darker side to their trusted teacher than they could have imagined.
