Lacey dreams about Regina and the necklace. The dream Regina asks Lacey if she has a thing for Danny and then accuses Danny of being her killer. Lacey wakes up.
Tess, Kyle and Jo watch a news report about the fall festival and how come citizens don’t want Danny to come. Jo tells her mom about Tara’s necklace and then leaves for school.
Rico asks Jo to help him sell pies at the festival but she says she doesn’t want to go. Phoebe, Sarita, Archie and Scott are also not going to the festival. Lacey and Phoebe talk about the necklace, and Phoebe suggests Lacey ask Regina’s mom about it.
At a town meeting, people argue about Danny coming to the festival. A man named Tim is particularly against it. Kyle however points out that it’s not within his power to forbid anyone from going to the festival.
At the diner Jo and Danny talk about how much fun they had at the festival as kids and Jo says he should go and offers to go with him. Lacey comes over and is shocked to learn that Danny is planning on going to the festival. She’s gets even angrier after they tell her about Regina necklace having belonged to Tara and she storms off.
Danny goes to the festival, a lot of people seem unhappy to see him there but he ignores it. Tess is friendly to him and he signs up for her pottery class. Jo comes over and suggests they go to the formal that night. Tess is delighted that Jo wants to go.
Lacey talks to Regina’s mom Gloria and asks her about the necklace but she doesn’t know where Regina got it. Feeling guilty for prying, Lacey offers to help Gloria go through all the condolence letters she’s received.
The Mayor of the town is angry at Kyle that Danny is at the festival and spending time with Jo and Tess. He also accuses him of handling the investigation badly. It’s mentioned that the necklace was in police custody after Tara’s death, then the estate lawyers had it but there’s no record of what happened to it afterwards. They also mention that no murder weapon was found yet but paint was found in the wound on the point of impact.
Jo and Danny are helping Rico sell pies. Rico is upset with Jo that Danny is helping. Tim, the man who had wanted to keep Danny from the festival shows up and gets in an argument with a woman over Danny’s right to be there. He pushes Danny, who falls and knocks over the pies. Kyle steps in and stops Tim.
Jo tells Rico she’s going to the formal with Danny. He’s surprised and tells her she shouldn’t. Kyle also talks to Danny and tells him he shouldn’t go to the festival either because it will just cause trouble.
Karen talks to Danny’s therapist and tries to find out if it’s possible that her son really is a sociopath.
Danny tells Jo he’s not going to the formal and heads home. Jo is clearly disappointed. As is her mom who points out that Jo was clearly happy about going.
Lacey is going through the condolence notes and finds one that was actually addressed to Regina. Inside is a lot of money and a note saying it’s the finale payment and threatening her not to say anything.
Jo show’s up at Danny’s all dressed up and says how much it would mean to her if he’d go with her to the formal. He agrees and gets dressed. As his mother helps him with his tie she assures him that she will always help him with anything, it’s her job.
Lacey brings the envelope to the festival and considers giving it to Kyle but doesn’t. Danny and Jo show up and the Mayor wants them to leave, but Danny points out that throwing them out will be a much bigger news story then letting them stay and the Mayor reluctantly agrees.
Rico and Jo meet and he says how pretty she looks. She says he looks good too and then turns back to Danny. Rico seems disappointed.
Tess seems ecstatic over how pretty Jo looks and how happy she seems. Danny explains to Kyle that he didn’t come in order to defy him but because Jo wanted him too. As Jo and Danny dance, Tess watches happily, while Rico also watches, clearly upset.
Danny gets a text message and tells Jo he has to run home for a bit but suggests they meet at the diner. He goes off and meets Lacey. She shows him the letter to Regina, but she doesn’t want to take it to the police immediately in case it had nothing to do with the murder and needlessly tarnishes Regina’s memory. Danny says he refuses to keep it from Jo. He asks why she wanted to meet like this, all alone and then Danny and Lacey kiss.
Jo talks to Rico and invites him to the diner, but he says no and instead asks how she could trust Danny after all the times he’s lied to them. He leaves for home.
At home Kyle and Tess argue. He feels she’s not on his side and is allowing herself to be charmed by a sociopath. She says Jo has been happier then she has in years and accuses Kyle of taking his inability to solve the case out on her, Tess.
Karen walks out on a pier overlooking a lake. She takes out the necklace and looks at it and then throws it into the water. Unbeknownst to her, Rico is watching from a distance.
At the diner Jo is excitedly waiting for Danny. Danny comes in with Lacey and Jo looks disappointed. Danny and Lacey sit down with her and start to tell her about the letter to Regina.