Things seem to be looking up for our three heroes. Annie is starting to be seen by ordinary folk, Mitchell has sworn off blood and even George is in relatively good spirits. But it's not long before their supernatural conditions catch up with them.The vampires won't leave Mitchell alone, he's harassed by Seth and Herrick, ominously warning him that he cannot deny what he is and should return to the Vampire fold. Meanwhile, George, who considers the house a sanctuary from his condition, is forced to transform there and promptly tears it apart. And Annie is heartbroken when the landlord, her fiance Owen, pays a visit and reminds her of everything that she has lost.

George is shocked when he meets another werewolf, a rough and ready rogue called Tully. Tully is the opposite of George, he's happy with his condition and wants to teach George how to enjoy being a werewolf. But this is the last thing that George wants since he doesn't want to have to accept what he is and his attitude towards Tully is one of thinly veiled disgust.

Annie meets Gilbert, a ghost from the mid 80s, who loves being stuck in the past. He's a ghoulish Smiths fan and loves the bleakness of being a ghost. Through Gilbert, Annie learns that she is stuck in limbo because there is something unresolved about her death. When Annie, Mitchell, George and Gilbert investigate the circumstances of her death, they finally discover that Annie was actually murdered by her husband, Owen. Annie is devastated since Owen was the love of her life, although it seems that in the meantime Gilbert has fallen in love with her.

Mitchell's attempt to embrace humanity becomes more intense than ever when he befriends a 12 year old boy, Bernie, and his divorced mum, Fleur. Mitchell and Bernie develop a friendship which reminds Mitchell of his own pre vampire childhood and helps him to stay on the wagon. But things turn sour when Bernie accidentally watches the vampire porn DVD that Lauren gave to Mitchell in episode 2. Fleur is horrified and thinks that Mitchell is some sort of sex monster trying to pervert her son. Before long there is a full blown witch hunt in the neighbourhood. A lynch mob forms trying to drive Mitchell out of the house. In the resulting melee Bernie is run over and left moments from death. Mitchell saves Bernie by making him a vampire. Mitchell is feeding again and this, coupled with the way that humanity has treated him, makes him turn back to the vampires.

Mitchell is back with the vampires and is feeding again. Herrick has been able to convince Mitchell that the vampires are starting a mass conversion and that they will only feed from people who want to be vampires themselves. In short, Mitchell has been duped that this is all for the greater good. But soon Mitchell learns the horrible truth... this is not a mass conversion but a mass extermination. He has to escape but can only do so with the help of George and Annie. The action reaches a frenzy and they just manage to free Mitchell from Herrick's clutches. In the end they are even helped by Lauren who finally admits she can no longer cope with being a vampire. And after helping Mitchell to escape she asks him to kill her.

Mitchell's life is saved when Josie, an old lover of his who is dying at the hospital, offers to give her blood to save his life. Once Mitchell has recovered he is ready to take on Herrick. He knows that he must meet his destiny... he must fight Herrick to the death. The problem is that Herrick is much stronger than Mitchell and it seems there will only be one victor. But Mitchell is determined that its something he must do.