Episode 3 of "The Institute" kicks off with an intense scene as Dr. Hendricks conducts an experiment on Luke. The young boy is confronted with a screen displaying an array of dots, yet he feigns indifference, successfully fooling the staff into believing his nonchalance. Subsequently, Hendricks attempts to assess Luke's telepathic abilities, but the child is wracked with pain, rendering him incapable of complying. Recognizing this, Tony reluctantly orders his return to his quarters.
At the station, Wendy shares some good news: Dobira has made it safely, and the robbers have been apprehended. It seems Drew will be awarded a medal for his efforts, unaware that Tim was the one who truly deserves the recognition. Wendy puzzles over Tim's reluctance to take credit, finding his humble excuses hard to swallow.
Later, the children regroup, learning of Avery's formidable powers—he possesses the ability to converse telepathically with Kalisha. He expresses his desire to assist them but can't resist revealing everyone's embarrassing thoughts, much to Nicky's amusement, who kindly teaches him the importance of discretion.
Meanwhile, Maureen pays Sigsby a visit, updating her on recent developments while cleverly masking her true intentions with kindness. She voices her suspicion of Luke's scheming, but Stackhouse brushes it aside as inconsequential.
Hendricks informs Sigsby of his decision to shift his focus onto Avery, deeming Luke a lost cause. Sigsby, sensing something amiss, soon stumbles upon the muted CCTV footage showing an exchange between Hendricks and Stackhouse, igniting her curiosity.
Elsewhere, Kalisha confides in Luke about her impending graduation. Luke ponders the possibility of rebellion, but she solemnly explains that resisting the Institute's demands would be akin to digging their own graves.
Suddenly, Avery is enveloped by a haunting hum, which swiftly resonates with every child present, even the Dennison wanderer, Annie. From the staff, we gather that this hum heralds the opening of a Keyhole. Later, Sigsby confidentially reveals to their enigmatic superior that Stackhouse has betrayed them. The boss, indifferent unless concrete evidence is presented, notes that Stackhouse has been vocal in her complaints against him as well.
In the town, Tim discovers Annie engaged in a game of hopscotch, a playful diversion to ward off unseen minds from delving into her thoughts. She is distraught over a plane crash falsely attributed to its pilot. With a warning to steer clear of the Institute, she拒 absolutely refuses Tim's suggestion of seeking help from a psychiatrist.
Elsewhere, Luke and Avery embark on Operation Snitch. Avery demonstrates her uncanny ability to plant thoughts, making Luke crave licorice despite his aversion to it. As they sift through the staff for vulnerabilities, Avery divulges that Maureen harbors a profound secret and harbors deep resentment towards the Institute.
Back in town, Tim takes a respite at the bar, where Kate initiates a conversation. The TV broadcasts the tragic news of Senator Ramsey's demise in a plane crash. Stunned, Tim inquiries about the Institute and Annie's cryptic mention of telepathy causing the crash. Kate dismisses it with a flippant joke about conspiracies, displaying disdain towards Annie's assertions.
The subsequent day, the children concoct their usual escapade, settling on 1:00 to 1:30 am as the optimal window for their getaway. Avery employs the guard dog to uncover the Back Half's dilapidated playground, enclosed by a rusty fence, yet finds it eerily devoid of children.
Their mission is abruptly disrupted as Kalisha synchronizes with the hum, marking the culminating phase of the First Half.
In no time, her graduation to the Back Half draws near, and Sigsby cannot stop raving about her impending service and discharge. Nicky, on the other hand, revolts in every way he possibly can. Avery attempts to read to Sigsby but fails miserably. Luke endeavors to sway Maureen, yet her eyes betray her fear. Realizing this, he abandons his efforts and instead tasks Kalisha with finding the old playground. They endeavor to communicate telepathically, but their connection is shattered by Sigsby's intervention. That fateful night, Tim stumbles upon Annie, lifeless and seemingly victim to alcohol poisoning—a curious fate since she has abstained since 2003.
As The Institute Episode 3 concludes, Kalisha is led into the Back Half, a labyrinth of desolate tunnels. Avery gains a glimpse of her surroundings through her eyes, but the connection falters as she steps into a chamber, plunging him into ignorance. Meanwhile, Sigbsy eavesdrops on Avery and Luke as they scour the CCTV footage in search of Kalisha, her expression marred by distress.
