Episode 3 of Season 2 of "School Spirits" begins with Simon, Claire, and Nicole scouring the old house for any hint that Janet might still be alive. They stumble upon Janet’s grave, which Simon seizes upon as tangible evidence of her presence there. Claire remains steadfast in her skepticism, though Nicole finds herself increasingly swayed by Simon's theory. Just then, Xavier arrives with news from the police: no fatalities were recorded in the fire.
Meanwhile, Maddie's mother continues her desperate search for her daughter, finding herself at the morgue to identify a possible body. Elsewhere, Janet makes a sneak appearance at a supermarket, stocking up on essentials and trying to clean up her act. However, fate deals her a cruel blow when she loses her bag containing all her money. In a bid to rectify the situation, Janet assumes the guise of a university freshman and hits a ride with two girls, who kindly invite her to a party. Maddie, however, politely declines their invitation.
Back at school, Quinn assembles a murder board as Maddie strives to keep pace with the unfolding theories surrounding Janet and Mr. Martin. Various conjectures fly around, but Rhonda remains unconvinced, her interests lying more in collecting Janet’s memorial items than solving the mystery. In the realm of the living, Xavier persuades Simon to allow him to converse with Maddie.
At Nicole’s abode, Claire unexpectedly bumps into Nicole’s smoking-hot brother, Diego, who is home from university for a cleaning spree. After Diego returns to school, he catches sight of Maddie wandering the hallways.
Elsewhere, Maddie's mother crosses paths with Mr. Anderson at an AA meeting. Following the meeting, their conversation delves deeper, leading Mr. Anderson to realize that Sandra has been receiving alerts about deceased bodies. He gently urges her to cease her self-torture, and they reach a mutual understanding.
Later that day, Nicole, having read about a prank on an online forum, decides to slip some liquorice into Maddie’s locker. She then confides in Claire, who reveals her shocking decision to quit cheerleading. The duo discusses Simon’s theory. During lunch, Maddie confronts Simon, demanding to know what he has discovered. Simon is apprehensive about disclosing his failure to Maddie. When he reveals that Janet was the arsonist, Maddie is left unnerved.In the meantime, Nicole fires off a text, alerting him that Diego has sighted Maddie at his educational institution. The cohort hastily converges on the university, where Claire conjures up a clever method to trace Janet's whereabouts. They uncover snapshots of Maddie at a bash and crash it without an invitation. Simon succumbs to the alcohol's allure, while Nicole and Claire, at different moments, independently catch sight of Janet.
Back at their academic haven, Maddie endeavors to engage the group in a memory exercise, urging them to recall the final day they saw Janet prior to her supposed 'ascension.' The circle begins to reminisce about Janet's 17th birthday fete, generously hosted by Mr. Martin. It seemed Janet was on the cusp of sharing something weighty with the group but never secured the opportunity.
Rhonda reveals she witnessed a heated altercation between Mr. Martin and Janet over her gift. It transpires that Janet intended to bestow upon them the return of their death memorabilia as her present. Rhonda conjectures that Mr. Martin betrayed Janet, leading to their spat. The dispute stirred Rhonda, prompting her premature departure before she could eavesdrop on more. Rhonda suspects that Mr. Martin silenced Janet when she defied his authority. The gang comes to the realization that Janet was on the verge of uncovering the truth when Mr. Martin imprisoned her. This memory serves as an additional torment for Rhonda, who berates herself for not doing more to safeguard Janet.
At the lively party, Janet, driven by greed, attempts to into the dorm rooms to pilfer money and garments. Her sinister act is swiftly uncovered, triggering an alarm that pierces through the revelry. Nicole, catching sight of her, tries to navigate her way towards Janet amidst the crowd. However, just as she inches closer, the campus security team arrives on the scene, prompting an immediate exodus of partygoers. Amid the chaos, Nicole loses sight of Janet, but fatefully, Claire bumps into her outside. With tender concern, Claire edges closer, reassuring her that she is in safe hands and that it's alright to head back home. But as Claire momentarily diverges her attention, Janet seizes the fleeting chance to melt into the night.
Simon, overwhelmed with guilt, confides in Xavier, fearing he has once again failed Maddie. Nonetheless, he manages to uplift Nicole's spirits, instilling hope within her. In a bid to lend support to Simon, Xavier generously offers to accompany him when he confronts Maddie.
Elsewhere at the school, Rhonda mysteriously vanishes, taking her Berkeley acceptance letter with her. Maddie is consumed by remorse, realizing she may have pushed Rhonda too far. Their conversation later reveals that the key to their dilemma lies within some eerie death memorabilia. But what door does this macabre relic unlock? The narrative shifts to Rhonda, clutching her letter, retracing her steps to the place where her life had tragically ended. As a red light flickers ominously, Rhonda grips the knob and swings the door open. It transpires that this is but a harrowing nightmare,Rhonda trapped in an endless loop of her traumatic past. Mercifully, she manages to break free, opening the door to escape her nightmarish reverie.
The episode concludes with Sandra stepping out of the taxi, swiftly deleting an app notification. Her eyes then catch Janet lurking in the shadows. Mistaking Janet for her beloved daughter Maddie, Sandra, driven by maternal instinct, rushes forward to envelop her in an embrace.
