Ricky is shocked by Marissa's resemblance to Casey, but later tells Karen he put Casey in the past and moved on with Karen. After Jamal suggests that Marissa and Casey were twins, Marissa calls her mother to find out. Alison, Jack and Rafe find Livvie unconscious in the woods. Livvie says she tripped, hit her head and blacked out, but doesn't mention the shadow. Rafe takes Livvie to the hospital where tests reveal that her baby is thriving. Ian and Kate make separate plans to go to New York. She plans on visiting her ""honey"" while he wants to investigate the ""shadow."" Chris and Doree also discuss the ""shadow."" Later, Ian is confronted by the ""shadow"" who, after warning Ian not to interfere, mysteriously disappears.

Rafe's less than thrilled to hear Livvie's baby is fine and tells Livvie he doesn't love her, then takes off to find Alison. Alison tells Jack that Livvie is really pregnant. Rafe tells Ali he wants her, however, she lets him go because of his wife and child. Ian learns from a professor friend that the ""shadow"" is an urban legend called ""The Avatar"" who wanders from town to town seeking justice, but, after finding a human host, becomes more powerful before revealing a dark side. Livvie remembers the pact she made with the ""shadow,"" in which he'll give her a baby and she'll keep his identity secret.

A jailed Chris proposes the police work with ""Lancelot"" rather than against him. When his lawyer shows up and threatens to sue, the cops release Chris and Kevin suggests they consider Chris's proposal in order to catch ""Lancelot."" Although she has feelings for Ian, Kate bids him goodbye, saying she is moving back home to work things out with Brennan. Lucy encourages Alison not to give up on Rafe, but Ali claims she needs to move on, as Rafe did. A determined Lucy wants to talk with Ed. Jack tells Ali they'll be sharing a room together in Bermuda. Clued in by Jack, Rafe tells Ian The Avatar's weakness is his shroud.

Alison accuses Rafe of using magic to manipulate her in her dreams. He apologizes and she asks him to keep his promise about living a normal life. Kevin tells the hooker going to jail isn't in his plans. When Kevin returns to Lucy, she sees scratches on his wrist. Victor tells them the woman dropped the charges against Kevin. Livvie tries seducing Stephen, who kisses her. He says she betrayed him before and asks her to beg. She pleads for him to make her his bride again, promising never to betray him again. He reveals fangs, but then says he was just joking- he's Stephen not Caleb. Livvie thinks Caleb's just playing with her.