An eccentric, mystical FBI agent arrives in the small Pacific Northwest town of Twin Peaks to investigate the murder of a young high school girl.

Agent Cooper finds a great cup of coffee and the world's worst cup of coffee on the same day; Bobby Briggs and Mike Nelson are freed from custody; Doctor Hayward delivers Laura Palmer's autopsy report.

Special Agent Cooper has an insightful dream; the Horne brothers take a trip to One Eyed Jacks; Donna Hayward and James Hurley find they are in love.

Audrey confesses to Cooper that she was the one who left him the note about One Eyed Jack's; Cooper informs Truman that, despite his insistence that the dream is a code for solving the crime, he cannot recall the killer's identity from it.

Cooper questions Dr Jacoby, and he points to Leo Johnson as the suspected killer; Cooper's superior, Gordon Cole, calls in to share Albert's findings; the One-Armed Man is pursued by Hawk; Josie Packard observes Ben Horne and Catherine Martell.

The Log Lady informs Cooper and his company that a third individual trailed Leo and Jacques on the night Laura is murdered; Cooper, Hawk and Truman discover Waldo the bird at Jacques Renault's cabin.