Episode 7 of School Spirits kicks off with Simon making a visit to Nicole, eager to check on her well-being after she mysteriously vanished for the entire weekend, leaving him stranded without a ride to school. Nicole casually brushes him off, claiming she's been swamped with work on her portfolio, which is facing a looming deadline. Simon, sympathetic to her plight, nods understandingly, as he too is nervous about his upcoming interview with a university alumnus.
As they chat, Simon gets a glimpse into Nicole's portfolio and is startled to find that every single photo is dedicated to Maddie. He struggles to believe that Mr. South could be innocent, and his curiosity prompts him to inquire about how Sandra reacted to the news. Nicole's face darkens as she admits that her friend was deeply upset. Simon attempts to encourage Nicole to branch out and capture more diverse subjects, but she becomes defensive, her emotions flaring.
At school, Mr. Martin organizes a mock trial, but the students seem disinterested, their minds fixated on another mystery. Everyone is eager to learn if Maddie has regained any memories of her encounter with the janitor. Maddie, frustrated and helpless, laments that she still hasn't unlocked her memories and can't assist Mr. South in his plight. Mr. Martin reminds her gently that, as a ghost, she's powerless to intervene in the affairs of the human world. He finds it puzzling that Maddie persists in talking about helping her human friends, unaware that she's able to communicate with Simon.
Rhonda suggests that her mind might be shielding her from painful memories, but Wally is determined to help Maddie unlock her repressed memories. He offers her a book that advises using senses like smell to trigger memories. With Rhonda and Charley's assistance, Wally attempts to recreate Maddie's last lunch, hoping the familiar scents will jog her memory. But despite their efforts, the experiment yields no results, leaving Maddie and her friends no closer to solving the mystery of her lost memories.
Meanwhile, Maddie's mother roused herself from a night of excessive drinking. Staggering towards Maddie's bedroom, she was startled to find the window ajar, a chill breeze sneaking through the gap. A sudden sense of unease washed over her as she surmised that someone might have crept into the room undetected.
Later, as she ventured out to replenish her alcohol stash, her gaze fell upon posters of Maddie, her heart heavy with worry. Mr. South, spotting her, attempted to approach and plead his innocence, but Sandra, her patience worn thin, gave him no chance to speak, nearly mowing him down in her haste.
Back at school, the atmosphere was tense. Wally proposed they try hypnosis to unlock Maddie's memories, but his irritation was palpable whenever Maddie mentioned Simon's name. Dawn, watching their efforts, offered to assist with an anti-seance, fearing that hypnosis could be dangerous. Maddie, sensing the danger too, agreed to Dawn's suggestion.
Elsewhere, Xavier, Nicole, Claire, and Simon huddled together, determined to clear Mr. South's name. Xavier was bewildered by his father's obstinate insistence on framing Mr. South, despite the fact that he had been his alibi. He suspected that his father was abusing his power, and Claire believed that they could save Mr. South if they could only uncover the identity of the person who had taken the scandalous video of her and Mr. Anderson and used it for blackmail. Nicole paled visibly at the mention of the video.
Simon made a bold decision. He reasoned that their chances of discovering any incriminating evidence the police might have against Mr. South would be greatly improved if they could sneak into the evidence room. Nicole, however, was adamantly opposed to the idea, but the others agreed to proceed with the plan. As Nicole attempted to follow Claire, Simon intervened, urging her to calm down. He sensed that there was something more at play, as Nicole's behavior had been increasingly erratic. Suddenly, the bell rang, signaling the end of class. Simon suggested that they make their move during lunch break, heading straight to the police station.
Meanwhile, Nicole endeavors to erase certain files from the school computer, yet her attempts are futile. Simon encounters the alumnus of the university and deliberately sabotages his chances of admission. Maddie eavesdrops and is angered by his apparent effort to sabotage the interview, yet he remains oblivious to her presence. Simon finds himself hesitant to abandon Maddie and doubts the necessity of departing the town as they had initially intended.
During lunch, Claire devises a clever plan: she intends to break her own window and fabricate a report to the police, alleging that she is being stalked. As she presents her fabricated tale to the Sheriff, Simon and Xavier stealthily infiltrate the evidence room. Simon notices that the purported boot prints attributed to Maddie do not belong to her and inquiries Xavier about his whereabouts when Nicole discovered them. Xavier reveals that Nicole was alone as they had agreed to split up in the woods.
Later, Nicole ventures back to the computer lab at school, seeking guidance from her teacher on the possibility of permanently erasing files from the school computer. The teacher informs her that such an endeavor is fruitless, as the computer automatically creates backups of its files.
Simon returns to the school and finds Maddie awaiting him at the bus station. She demands an explanation for his failed interview, but he is more fixated on the revelations he made at the station. He shares his theories with Maddie, yet she persists in her quest for answers regarding his interview. Simon confesses that he sees no reason to continue with their original plans, but Maddie insists that he must continue living his life.
Simon steers the conversation back to Nicole and cautions Maddie that Nicole might harbor resentment towards them for branding her as Maddie's imitator. It appears that the comment has deeply wounded Nicole, and while both of them have apologized, Simon suspects that she might still harbor ill-will. Maddie remains skeptical and believes that Nicole is simply grieving. She urges Simon to exercise caution, warning him that Nicole would never forgive him for accusing her of Maddie's demise. Maddie urges him to search for conclusive evidence and rejects the idea that Nicole could be involved.
Rhonda stumbles into another predicament with Mr. Martin, perplexed by her unwavering support for Maddie. She assures him that her focus remains on crossing over, yet her heart compels her to lend a hand to Maddie, who suffers a similar ache. Charley, eavesdropping on their conversation, interrupts to inform Rhonda that Dawn is prepared.
Dawn orchestrates an anti-seance, striving to jog Maddie's memory of her final day. She offers her own tragic tale as a beacon, revealing that she perished unexpectedly after hearing her friends' mockery.
Meanwhile, Claire and Xavier's hunt for evidence to exonerate Mr. South intensifies. Flipping through his calendar, they discover that Nicole was present on the fateful day the video was captured. They enlist Simon's help to confront Nicole, but she skips class, leaving Xavier to suspect that she's attempting to dispose of incriminating evidence. His hunch is spot-on; Nicole frantically tries to erase the video from the computer she used to blackmail Mr. Anderson and Claire.
After school, Maddie opens her ears to Simon's theory about Nicole, her heart softened by Dawn's poignant narrative. She realizes the importance of seeking the truth, regardless of the pain it might bring. Simon, offering comfort, confesses his love for her and his internal conflict over assisting her in solving her murder and achieving crossover. Maddie assures him that he must live his life, and he finds himself overcome with emotion, feeling the injustice of their situation.
The pair embark on a mission to track down Nicole, eventually locating her in the computer lab. They confront her, and she admits to threatening Mr. Anderson, motivated by her desperation to raise funds for her dream of attending art college in Boston. Her failure to secure a spot and her parents' inability to afford the tuition left her with no other option. Simon offers solace, apologizing for his earlier suspicions. Nicole, consumed by guilt over Maddie's disappearance and her own failure, accepts responsibility.
Simon urges her to turn the money over to the police, allowing Mr. South to clear his name. The scene shifts to Sandra, counting money in an envelope and concealing it in Maddie's room. Nicole agrees to guide them to the hiding place, and as they depart, Maddie offers Dawn heartfelt thanks and an apology for evoking her painful memories. She declares that Dawn deserved better and is a true friend.
Maddie rushes to rejoin Simon and Nicole, but suddenly, the lights flicker, and Dawn crosses over. Rhonda, Charley, and Wally are perplexed; they didn't experience goosebumps or see the lights flicker when Janet crossed over.
After school, Xavier faces his father's ire over sneaking into the evidence lab. Thankfully, Claire steps in to defend him, braving the Sheriff's harsh words.
The episode draws to a cliffhanger as Maddie watches from the school fence, witnessing Simon and Nicole digging for the missing money. Their hearts sink as they discover the cash has vanished. Simon wonders if Maddie was followed the night of the homecoming dance. Nicole recalls visiting Sandra's house before concealing the money, sparking Maddie's memory of a heated altercation with her mother. She spots a figure in a black hoodie skulking behind Simon and Nicole and frantically tries to warn them. Realizing the danger, they chase after the mysterious figure.
The episode comes to a thrilling close as Rhonda, Wally, and Charley approach Maddie. She confesses that she must confront her mother, suspecting her as her killer.
