Episode 4 of Season 2 of "School Spirits" kicks off with Sandra warmly welcoming Maddie back into her home, her eyes brimming with inquisitiveness and a heartfelt apology for the pain she had inflicted upon her in the past. Little does she realize that Maddie, who is actually Janet in disguise, remains eerily indifferent to her overtures. Janet, feigning nonchalance, requests a bath and proceeds to nestle into the familiar surroundings. Sandra, determined to make amends, suggests that Maddie reconnect with her friends, but Janet, steadfast in her resolve, politely declines. She insists that she desires some quality time with Sandra alone before announcing her return to the world.
Elsewhere, Rhonda enthralls her friends with tales of her harrowing experience in the red hell. Maddie and her comrades endeavor to uncover the enigma, with Maddie positing that Mr. Martin could be lurking within the scars, a.k.a. the red hell. She urges them to venture into their scars in search of him, but Charlie, cautious and wary, refuses the perilous task.
Meanwhile, Nicole and Xavier's bond deepens in the confines of an online chat room, their conversations growing increasingly intimate. Sheriff Baxter, however, grows increasingly concerned as Xavier consistently shuts him out, concealing his online escapades. Claire, blind to the supernatural reality, persists in her denial regarding Maddie's ghostly status, pestering Nicole for juicy details about her mysterious online beau, to no avail.
At school, Rhonda's anxiety spikes as she contemplates Mr. Martin potentially exploiting the mandatory school event later that day to possession a new body. The event, intended to aid students in coping with trauma, presents the perfect opportunity for Mr. Martin to make his sinister transition.
The following morning, Janet continues to acclimate to her surroundings, with Sandra hovering attentively to ensure her comfort. Mr. Anderson drops by to fetch Sandra for their AA meeting, but she fibs about having work commitments. He departs after disclosing that the court has accepted his plea deal, necessitating a trip to school to clear out his desk and surrender his license. Later, while shopping, Sandra bumps into Sheriff Baxter, prompting her to confide in him about Maddie's return.
Concurrently, Maddie approaches Simon, seeking answers about her earthly form. Xavier, attempting to apologize to her ghostly presence, is spooked and flees in a hurry. Left alone with Simon, Maddie is informed that they have lost track of Janet once again. Simon reassuringly vows to locate Janet before departing for the school event, the air thick with anticipation and the lurking specter of the unknown.He harbors plans to revisit the campus in search of Janet, and the others readily concur to accompany him.Alas, their school commitment proves to be an insurmountable obstacle, as the principal confiscates their phones and issues a dire warning of suspension to Simon should he attempt an unauthorized departure. The workshop, contrary to their fears, transpires less dreadfully than envisioned. Nevertheless, Simon yearns deeply for the freedom to venture to the campus.
In the realm of 'Ghostville', Wally musters his courage and decides to unlock the mysteries within his scar using his key. Witnessing his own demise proves an emotionally jarring experience, yet he emerges empty-handed, finding no clues to aid Maddie. Reluctant to burden her with his harrowing vision, he keeps silent, leaving Maddie to ponder if she's asking too much of her friends.
Inspired by Wally's bravery, Charley takes a leap of faith and peers into his scar using his key, only to catch a glimpse of Mr. Martin. Unfortunately, he's unable to reach him in the nick of time. This revelation stuns the ghostly clique, who ponder how Mr. Martin navigates their scars without a key, yet find themselves unable to interoperate their keys. Determined to uncover more, Wally valiantly volunteers to re-enter his scar, despite Maddie's unsuccessful attempts to dissuade him.
Meanwhile, back at the school event, tensions rise as Chloe confronts Claire for her sudden frostiness. Chloe accuses Claire of exploiting and discarding people without a second thought. Nicole tries to offer solace, but Claire snaps and storms away. Later, Xavier receives a call from his father, who had inquired about him at the school. Sheriff Baxter informs Xavier that Maddie has returned home. Sharing this news with Nicole, they hatch a plan to skip school and persuade Janet to return.
At home, Sandra strives to coax Janet into opening up, just as Sheriff Baxter arrives to gather a statement. But Janet remains tight-lipped, refusing to divulge anything to him, even in his presence.
She meticulously crafts lies about her supposed inability to recall any details, and when Sheriff Baxter attempts to gently prod her for more information, she retreats further into a shell of silence. Sandra steps in, forcefully ejecting the sheriff, yet his pursuit remains unrelenting. More than anyone, he yearns for clarity, haunted by Xavier's past accusation of harming Maddie. He believes that uncovering what Maddie knows could be the key to reaching Xavier.
As the school event trudges along with a heavy heart, Simon stumbles upon Claire, tears streaming down her face in solitude. She eventually confesses that her mother has been eerily absent, canceling her credit cards and ignoring her calls and messages for three long days. Simon offers his comforting presence, just as Maddie appears on the scene, tasked with delivering a message to Claire after overhearing her heartfelt apology. Claire admits her denial stems not from disbelief in Simon, but from an unwillingness to accept that Maddie is truly gone.
As their conversation unfolds, a haunting hum permeates Ghostville, and the lights flicker ominously. Maddie and her fellow ghosts grow anxious, recognizing this as an omen of a recent death at the school. Charley pleads with Yuri to accompany him in an investigation, while Maddie sets out to locate the others.
She trails Simon as he dashes to find Xavier and Nicole, who promptly inform the group and the Principal of Maddie's return home. Meanwhile, the ghostly clique reconvenes and uncovers a startling revelation. With no corpse or distress signals evident at the school, they can only conjecture that Mr. Martin has possessed someone else's body—but whose?
The episode concludes with Simon and his companions sitting in the parking lot, eyes fixed on Maddie's house, uncertain of their next course of action, amidst a swirl of unsettling uncertainty.