Holden and the kids are having breakfast when Lily unexpectedly returns from rehab. Faith worries that she's the reason why Lily went to rehab, but Lily assures she's not. Later, Lily confides to Holden she's nervous and he vows his support. Emily, who doesn't know where Ali is, covers to Susan about why Alison didn't come home the night before. Dusty sees Jesse coming out of a room and hears Alison's voice inside. Emily and Dusty barge in and kick Jesse out. Dusty tells Emily to call Susan and put Ali into rehab. Alison begs them not to, and Dusty relents, agreeing to stay with her while she detoxes. When Susan rounds the corner, to keep her from suspecting anything, Dusty pulls Emily into a kiss. Emma thanks surprised Gwen for taking the kids out for ice cream. Gwen realizes it was Cleo, and goes to confront her. Cleo insists that she has a perfectly good explanation, but can't fess up. Gwen leaves frustrated, and she and Will decide to go the cops. During family breakfast, JJ asks if Jack and Katie were really kissing like Parker said. Katie and Jack deny they're dating, but JJ is upset and runs out. Jack asks JJ to give Katie a chance, while Katie asks Parker if she can be his friend. Later, Jack asks Katie not to give up on him and his brood. Meanwhile, Carly wonders if Cleo found a way to help her see Jack. Carly explains that Simon has helped her return, but she must stay out of sight. Cleo thinks she's taking a risk, but will help her go incognito. Gwen knocks on the door, as Carly goes to see Jack.
To keep Susan from finding out about Alison, Dusty kisses Emily. Emily takes Susan off, and Dusty checks on Alison, who tries to escape. Dusty won't let her go, and Alison kisses Dusty, trying to seduce him. Dusty gives Alison a shower, and later, he watches Emily comfort Alison. A waitress tells Jack there is a suspicious looking woman (Carly in disguise) outside the restaurant and asks Jack to investigate. Carly runs off before she's spotted. Margo sees Katie and Jack kiss and warns her not to move too fast. Meanwhile, Carly wants Cleo to impersonate Gwen again. Gwen and Will tell Jack about Cleo, and he agrees to investigate. Jack shows up at Cleo's door, and Carly hides. Cleo starts to explain what she did to Jack, as Gwen heads back to the police station to find out what's being done about Cleo.
At the Lakeview, Emily and Dusty continue to detox Alison from her crystal meth addiction. Emily wonders how Alison could get so addicted to drugs and while Dusty tries to comfort her the two discuss their kiss and how it worked in distracting Susan. While they are talking Alison's drug dealer knocks on the hotel door in search of the money Alison owes him. Dusty tells him to get lost and quickly escorts him away from the room holding Alison and Emily. When Dusty returns Emily is in the hall and asks about Jesse, the drug dealer, and Dusty lets her know that the front desk has been warned not to let him up again. As the two go back into the room, where Alison was resting, they discover she is missing. They search the room and realize Alison is out on the ledge of the window high above the streets. Dusty believes she is trying to kill herself, but Alison laughs off this idea and as she turns to go back into the room she slips and falls as Dusty lunges to catch her. Dusty manages to grab hold of Alison's arm and they work together to get her back into the window. Once back in the room Emily questions Alison about what she was doing, but they interrupted by the police who were called by someone who saw Alison on the ledge and assumed she was a jumper. Dallas is the police officer who arrives at the room and Alison tells him that she was out there as a joke and apologizes for scaring anyone. Dallas leaves after they apologize and he is assured things are fine, but he tells them he will be back if there are any more disturbances. Emily puts Alison to bed and tells her she would be devastated if she had fallen. She pleads with Alison to let them help her and tells her she will stay with her as long as she needs her. Emily tells Dusty she will understand if he wants to walk away, but he tells her he isn't going anywhere.
As Katie daydreams in the Lakeview bar, Henry appears and asks where her mind is at. Katie tells Henry she is thinking about her future and when Henry mentions Jack he causes Katie to smile. Her smile tells Henry all he needs to know and when he questions Katie about how Jack is she tells him she is worried that if she gets involved with Jack she could ruin his life. Henry comforts Katie and tells her Jack can survive her especially after being married to Carly. He encourages her to spend more time kissing Jack and less time talking about it. Katie continues telling Henry that one important reason for not moving quickly with Jack is that she doesn't want to hurt his kids. Their discussion leads Henry to ask Katie about Mike and he tells her that he thinks their marriage was over before Mike left. In addition, Henry says he is happy for Katie and Jack, but wants her to end her marriage to Mike before things go another further with Jack. Katie agrees it is time to divorce Mike and worries that she is running out of chances to live happily ever after. Henry persuades Katie to make things work with Jack.
At their house, Gwen tells Will she needs to see Cleo arrested so she knows that their troubles with her are over. Will puts up a fight at first, but agrees to go with Gwen to the station so she can have closure. The two go to the police station looking for Jack and run into Dallas who tells them about his earlier run-in with Cleo when she was impersonating Gwen at the Wagon Wheel. Dallas leaves to look into who Cleo was hiding in her room and Gwen and Will realize that Cleo has been very busy impersonating Gwen.
At the Wagon Wheel Motel, Cleo is confronted by Jack who wants to know why she is impersonating Gwen and why Cleo went near his kids. As Cleo tries to explain her actions, Carly hides out in the hotel bathroom and listens to Cleo and Jack. Cleo tells Jack she spent time with his kids because they were like family to her and for other reasons she can't tell him. An angry Jack tells her she is being charged with kidnapping and takes her to the police station as Carly listens in. Once alone in the room, Carly worries that Cleo will tell Jack about her part in taking the kids. Fearful that she will be found out, Carly leaves Cleo's room where she is confronted by the manager who questions why she is coming out of the wrong room. Carly explains that she was in Cleo's room looking for her purse. This excuse keeps Carly from having to explain herself to the police and she goes about her business.
Once at the station Cleo and Gwen come face to face. Cleo's appearance as Gwen unnerves her and she rips her wig off. Cleo tries to flatter Gwen by telling her she wants to be just like her and looks up to her as a role model. Gwen tells her she is pathetic and should have never impersonated her or gone near Jack's kids. Cleo continues to try to explain her behavior, but Gwen tells her that once she got Jack's kids involved she went too far. As Gwen and Will leave to go Cleo begs them to stay. Cleo tells them she has reasons for what she has done and that she can't tell her now, but someday when she can tell them that they will understand why she did what she did. This new statement isn't enough for Gwen so she and Will leave Jack to process Cleo. In the interrogation room, Jack tells Cleo about the charges she is facing and a scared Cleo asks for her one phone call. She calls Jade and asks for help, but Jade hangs up on her. Katie arrives at the station and brings a smile to Jack's face when she tells him she is almost ready for their "adult date". Once back at their house, Will has to leave to turn in a paper and Gwen searches the house to see if Cleo took anything else in her attempts to impersonate her. As she searches the house Gwen receives a surprise visit from Carly.
Down at WOAK Maddie talks to Kim about her summer internship at the station. She learns she will be working with another intern named Noah who will be arriving in the next few days. Kim offers support to Maddie about dealing with missing Casey and as they are talking Luke arrives for his job at the station and gets his assignment from Kim. Luke tries to talk to Maddie about their friendship, but at first she is indifferent towards him. Luke tells her he wants to be friendly regardless of her past with Jade. Maddie doesn't answer Luke and insists they get down to work. As the two wait for the staff lunches Maddie tells Luke she isn't going to hold her grudge with Jade against him and she hopes they can be friends. As they discuss their lives a school friend, Liv, walks in and questions the two about prom. She tells them that she is going with Kevin and both Maddie and Luke explain that they aren't going to prom for "obvious reasons". Luke tells Maddie he wishes he could go because it doesn't seem fair that Kevin goes and he doesn't. The two laugh over their shared circumstances and Maddie asks Luke to go to prom with her. The two decide to go to the prom together.
Lily visits Lucinda, who tells her Craig is being taken care of. When Lucinda won't reveal her plan, Lily goes to Craig and asks him to give back Worldwide. Lily tries to appeal to his sensitive side to no avail. Later, Lily tells Lucinda to surrender to the situation and Lucinda refuses. Craig thinks about Lily's words about having no one, and then looks at the phone. Paul asks Meg to end her vendetta against Craig. Meg argues for why her vendetta is important as Paul tries to dissuade her. After listening to Meg's rationale, Paul wonders when she became him. Meg tries to assure Paul she can handle Craig. Meg's phone rings, and it's Craig. Gwen comes face to face with Carly and says she's never been so happy to see anyone in her life. Carly explains her situation briefly and apologizes. Carly reveals she wants Gwen to help Cleo because Cleo was helping her when she impersonated Gwen. Later, Gwen blindsides Jack by offering to pay Cleo's bail, but Jack won't let Gwen go until she explains what or who changed her mind. Katie visits Tom to file for divorce and then leaves a message for Jack that she's free. Meanwhile, Jack tries to talk to the kids about Katie. They finally agree to give her a chance. When Katie arrives looking for Jack, JJ takes her to the barn while a disguised Carly watches. Katie and JJ return, leaving Carly trapped.
At Emma's farm, Katie and JJ almost discover Carly hiding on the porch when they hear a noise, but JJ decides it was just a snow shovel that fell over. They have a nice conversation, and when Katie sees the plant that JJ planted for Carly, she tells him that sometimes people leave and don't come back, but you have to move on with your life and meet new people. JJ asks if she means people who won't leave, and Katie says yes. She leaves, and Parker comes out, saying he thought someone was on the porch; JJ says it was just him and Katie, but Parker insists that he feels someone else there. JJ ill-naturedly teases him about his psychic powers, and they go inside when Sage comes out saying she's hungry. Carly leaves, and the kids talk in the kitchen about how they don't have any more food to eat because Brad has eaten it all. JJ says they should be nice to Katie because she knows how to cook, or at least, she cooks macaroni and cheese and fried chicken on her TV show. Brad walks in and wants to know who they're talking about, and they tell him that Katie was there earlier. Brad wants to know if she was looking for him, but they tell him she was looking for Jack. Parker goes back out to the porch and goes right over to the chair Carly had been hiding behind, still feeling someone had been there.
At the Lakeview, Vienna finds Henry in the lobby and tells him she needs some more money; he gives her the ATM card, telling her it's her money and asking if she's heard anything from the Prince of Leonia. She hasn't and thinks he just wants that situation to be resolved so Vienna will leave the country. Henry insists that's not true, but when Vienna tries to get him to agree to have dinner with her, he spots Brad walking in and pretends that he already has plans with Brad. Vienna leaves, and Brad tells Henry he's being an idiot because Vienna is obviously still in love with him. Henry tells Brad he doesn't want to hurt Vienna all over again because he can't commit to a permanent relationship with her; Brad asks what would happen if he tried to move in on Vienna, and Henry replies, "They'd never find the body." Brad wonders why Henry gets all the women and how he can get Katie to be his friend and lover, like Henry did. Henry says Katie's already had someone like Brad --- Simon. Vienna, meanwhile, fantasizes about kissing Henry after she returns the ATM card, but then she snaps out of it and goes in and gives the card back to him. She and Henry flirt a little, and Brad tries to leave and set them up with drinks, but Henry declines. Vienna wants to know why he can't stand to be around her anymore, and Henry says he doesn't want to hurt her; she asks if he's distancing himself from her to protect her, and he says yes. She thanks him, kisses him, and leaves. Brad tells Henry that Vienna's a keeper, and he needs to get in her room and spend the night with her. Henry says since they're giving each other advice, his advice to Brad is that unless he's 10 times the man Jack Snyder is, he should leave Katie alone. Upstairs, Vienna remembers being jilted at her wedding, and she goes to bed and dreams of Henry giving her a necklace with a diamond heart on it; in reality, someone has been in her room and has placed the crown jewels of Leonia around her neck while she sleeps.
Carly runs into the manager of the Wagon Wheel Motel on her way out, and she pays him in cash for her stay. He insinuates that she needs to give him more because he doesn't want any trouble with the police about her and Cleo; Carly apologizes for having been trouble and offers him a large "tip." He takes it and tells her to come back anytime but notes that it appears she's on the run right now. Carly ends up sitting alone at the Oakdale airport, talking to herself, saying Simon needs to get her out of this situation soon.
At the police station, Gwen tells Jack she wants Cleo to be set free; when Jack presses her for a reason for this sudden change of heart, Gwen says it's because she herself has done things in the past that were very wrong, and everyone deserves a second chance. Will arrives and is stunned to hear that Gwen wants to release Cleo; Jack leaves to give them a chance to talk, and Will insists that Gwen tell him the real reason for her change of heart. Gwen tells him that Carly's back and that Carly asked Cleo to impersonate Gwen so that she could see her kids again. Will still thinks they should keep Cleo locked up for all the other illegal things she's done, but Gwen insists that she be let go. When Jack returns to the interrogation room with Cleo, Will angrily tells Cleo that she has no business impersonating Gwen and interfering in their lives, but afterward, he turns to Jack and says he and Gwen want to give Cleo a second chance. A disbelieving Jack says he could still hold Cleo on charges without Gwen and Will's involvement, but he agrees to let her go, warning her that there will be no more chances and that she had better stay away from his kids, whether she's dressed as herself or as Gwen. As Cleo and Gwen walk out, Jack asks Will why he went along with Gwen; Will says, "I love my wife, and there's nothing I wouldn't do for her. You know all about that, right, Jack?" Will and Gwen take Cleo back to her room at the Wagon Wheel, where they tell Cleo she needs to take the bus to Chicago and either go back home or get a job there. Cleo says she already has a ticket, and they ask who bought it for her, but she covers for Jade by saying she'd bought the ticket thinking she was going to visit her aunt and uncle in Chicago. Will says she can do that now, but Cleo says it turns out they don't really want her to come visit them, so she'll just sleep out in the parks in Chicago since she has nowhere else to go. Will offers her money to help her out, but Cleo says that would destroy her dignity, and she can't accept it. Gwen is worried about sending Cleo away with no money and no place to go, but Will insists that it's not their problem, so they end up offering Cleo a ride to the bus station and nothing more. Cleo says they've done enough already, and she'll get there herself. They leave, and Cleo breaks down and cries.
Katie comes to the police station to see Jack, and he asks her what she'd do if someone was running around town impersonating her; she says she'd be furious and want the person locked up, and Jack tells her about Gwen letting Cleo go. He asks her what might possess Gwen to do such a thing, and Katie suggests that perhaps Gwen's protecting someone she cares about. Jack begins listing the people that might be, but he omits Carly; Katie adds Carly's name, but Jack says Carly's long gone and she isn't coming back. Jack gets a phone call, and Katie tries to leave, but he stops her and asks her what it was that she was tracking him down to tell him. She says that she doesn't want this to influence their crazy relationship, but she's asked Tom to file the paperwork for her divorce from Mike. Jack kisses her, then kisses her again, and they realize their "crazy little thing is about to get even crazier."