Episode 4 of School Spirits kicks off with Mr. Anderson administering an exam to the class, while Maddie lurks in the shadows, her eyes fixated on her mission: cracking his phone's passcode. Simon, trying his best to ignore her ranting about her inability to access Mr. Anderson's phone, focuses on the test. As soon as the final bell rings, he bolts out of the classroom.
Meanwhile, Mr. Martin and the other ghosts convene in a brainstorming session, searching for exciting weekend activities to amuse themselves. Maddie joins their huddle, disclosing her investigation into Mr. Anderson and inquiring if any of the spectral residents have witnessed anything suspicious. Alas, the ghosts' collective memory yields no clues, and the conversation quickly drifts back to weekend plans.
Maddie persists, asking if perhaps the other ghosts might have seen something. Rhonda cautions her against approaching them, explaining that they're stuck in a perpetual loop, replaying their final moments. Triggering their memories could be perilous. Maddie entertains the hope that Dawn might hold some answers, but Rhonda dashes her hopes, declaring her a dead end.
Elsewhere, Simon and Nicole's paths cross in the hallway. Nicole remains firmly convinced that Maddie is still alive and accuses Simon of ignoring her in his supposed search for Maddie. Simon attempts to explain that he's been communicating with Maddie's ghost, but Nicole dismisses his claims as mere grief-stricken ramblings. She's determined to attend Maddie's favorite festival that evening, believing Maddie will materialize there and they can all be reunited. To that end, she ropes in Xavier for assistance.
Concurrently, Simon steals Mr. Anderson's phone, only to narrowly escape detection when the counselor's phone pings, alerting him to the theft. In a panic, Simon ditches the phone and manages to evade the nosy grief counselor, who persists in offering unwanted assistance.
Later on, Nicole conducted an interview with Claire for the esteemed journalism club. However, during the conversation, she found Claire's response regarding her sentiments about the upcoming homecoming particularly triggering. Claire seized the opportunity to feign concern for Maddie's return, effectively shutting Nicole out. Unable to contain her emotions, Claire burst into tears, professing that she and Maddie had once been close friends and desperately hoping for Maddie's safe return.
After the interview, Claire attempted to befriend Nicole, but her efforts fell flat. Nicole observed that Claire seemed unusually distant towards Xavier, and she couldn't help but wonder what the reason might be.
Meanwhile, across the school campus, Rhonda, Wally, and Charley were engaged in a mission to assist Maddie in narrowing down the identity of a ghost who might be able to assist her. Their efforts were interrupted by a sudden appearance of Simon, who urgently informed Maddie that they needed to talk. They were startled to discover that Maddie could communicate with the living and followed them to the bus stop, eavesdropping on their conversation.
Simon was visibly distraught, feeling that things were spiraling out of control with regards to Mr. Anderson. Maddie advised him to confide in someone, such as his parents or the police, but Simon dismissed the idea, fearing that no one would believe his ability to communicate with Maddie's ghost. They initially decided to leave Mr. Anderson's phone where Simon had discarded it, but Simon ultimately changed his mind and resolved to speak with the principal. He revealed the evidence he had uncovered and his suspicions about Mr. Anderson, prompting the principal to call the police.
Rhonda felt betrayed by Maddie's omission of her ability to communicate with Simon and by Charley's knowledge of it. The trio erupted into a heated argument, and Maddie, feeling overwhelmed, abruptly left them to search for a ghost named Mina in the theatre. Mina, deluded into thinking she was still part of the school play, spent her days preparing for the show and offered no assistance to Maddie.
Disheartened, Maddie wandered through the theatre and stumbled upon an unfamiliar devil mascot sticker. Her curiosity piqued, she ran into Dawn and inquired if she had seen anything suspicious related to Mr. Anderson. Dawn assured her that she had seen nothing out of the ordinary and offered to assist Maddie in communicating with the bus crash victims. Maddie interrupted their rehearsal, but they were unable to provide her with any helpful information. However, she noticed that they were all wearing the same mysterious stickers, leaving her with more questions than answers.
On the flipside, Rhonda and Wally are puzzled as to why only Maddie possesses the ability to communicate with Simon. They spend an entire day shadowing him, but to their dismay, Simon is whisked away by the police for interrogation. Maddie desperately tries to reach out to him, eager to know what's transpiring, but her voice remains unheard.
Outside the confines of school, Nicole vents her ire to Xavier about her growing frustration with Claire. She notices his unusually quiet demeanor and inquisitively asks what transpired between him and Claire. As they make their way to the festival, Xavier confesses the truth about his relationship with Claire. Nicole's anger flares, blaming him for Maddie's departure. She insists he remain in the car while she searches for Maddie among the festival-goers.
Everyone she approaches shakes their heads, declaring they have not seen Maddie. Ignoring her initial directive, Xavier exits the car to assist her. He confesses a sense of guilt, apologizing for hurting Maddie. As Nicole returns, she admits she's struggling to believe that Maddie is really gone.
At the police station, Simon finds himself in a precarious situation as evidence suggests he knows more than he's letting on. The police have in their possession the fragment of Maddie's phone that Simon discovered in the auto shop and handed over to Mr. Anderson. They interrogate him, inquiring why he chose to entrust the evidence to the teacher. Simon explains that at the time, he believed he could trust Mr. Anderson.
The police are operating on the theory that Maddie fled, having plotted to frame her teacher for her disappearance. Meanwhile, back at school, Charley endeavors to comfort Maddie amidst Simon's arrest. Maddie feels powerless, and Charley empathizes with her plight. He opens up about his former crush, Emilio, who now stands as a teacher at the school. Emilio was once a transfer student, and from the outset, he exhibited kindness and consideration towards Charley.
Charley couldn't resist falling deeply in love with him. However, fate dealt them a cruel blow when he inadvertently revealed Charley's secret to his parents, leading to a devastating rift between them. Tragically, Charley never had the chance to convey her forgiveness to Emilio before she passed away.
As Maddie and the others conversed, she stumbled upon a clue that might explain why the school had altered the mascot's uniform. Rhonda revealed that Wally had undergone a significant transformation following the bus crash. She vowed to share the truth about her ability to communicate with Simon with the other ghosts, but Rhonda and Wally begged her to keep it a secret.
Maddie made a decision. She suggested that they search for some flowers as a gift for Mina. Mina, in turn, shared a fascinating tidbit with Maddie about Mr. Anderson's clandestine workshop hidden within the theater.
Later, Maddie tracked down Simon, who had returned to the school to retrieve Mr. Anderson's phone and turn it in to the authorities. He confessed to Maddie that the police suspected him of helping her escape. Maddie, seizing the opportunity, informed him about Mr. Anderson's secret workshop. Simon, enraged, confronted the teacher during a faculty meeting, exposing the truth to all.
It transpires that Mr. Anderson has been embezzling funds from the school, ostensibly to purchase fresh uniforms for the students. However, his deceitful scheme involves merely swapping the mascot stickers on discarded uniforms and passing them off as brand new, while pocketing the proceeds. Mr. Anderson is now being escorted for questioning regarding this uniform scandal.
Maddie and Simon witness his departure, and Maddie wonders if her demise might be linked to this sordid affair. Simon tries his utmost to soothe her fears, and she urges him to seek rest. Rhonda, observing their tender exchange, feels a pang of sadness and anger. She turns to Mr. Martin, pleading for his assistance to cross over to the afterlife.
Meanwhile, Maddie offers to relay Charley's message to Emilio. The episode reaches its climax as Maddie suddenly realizes that Dawn possesses the knowledge of everyone's phone passcode. She rushes to inform Simon before he departs, and together they examine Mr. Anderson's phone. It reveals that he had contacted Claire on the fateful night when he was frantically scrambling over the missing funds.
