An 11 year-old kid hires Shawn and Gus to retrieve his stolen Darth Vader action figure collectible from the British Ambassador's son's room at their temporary residence in Santa Barbara. Shawn successfully sneaks into the Ambassador's residence during a lavish party the Ambassador is hosting in honor of successfully exonerating Colin, a British student, of murdering his girlfriend Sarah. Shawn successfully retains the Darth Vader, but in the process he comes across the body of a dead woman. Before he is able to investigate, he is forced to escape, as his presence is discovered by guards. Shawn quickly escapes, but not before he is spotted and chased. Shawn narrowly escapes, but now he and Gus have a murder to solve.
Meanwhile, over at the SBPD, Lassiter has Juliet strapped up to a lie detector test. He knows about her relationship with Shawn and wants her to come clean. Lassiter asks her if she is dating anyone, but Juliet avoids answering and un-straps herself from the test, but Lassiter knows the truth. At that moment, Shawn and Gus come barreling through the SBPD doors. They tell Jules and Lassie that Shawn had a vision about a murdered woman under a bed in the house up the hill at a formal gathering. Lassiter is not hearing it, but Juliet maintains that they should follow up on Shawn's vision. Shawn then gives an address – an unusually specific "psychic vision". Juliet is slightly baffled by the specificity of this particular psychic prediction, but goes along with it.
Shawn, Gus, Juliet and Lassiter head to the mansion where they meet the Ambassador and his Vice Counsel Randa, who have both been in Santa Barbara for the past month lobbying for the release of Colin, the accused British student. Shawn describes the dead body he envisioned – a woman in a sparkly dress and lavish earrings – and with that, the ambassador immediately allows them entry to investigate.
However, when Shawn goes to show them where he psychically "saw" the body, the body is not there. But Shawn Shawnvisions something that tells him the body was dragged to a different part of the property – the pool area. And sure enough, there she is, floating dead in the water.
In the midst of defending Shawn to Lassiter, Juliet blurts out the truth about her relationship with Shawn, and with that, Lassiter tells her he wants a new partner. But Chief Vick isn't having it. They are to remain partners, whatever their beef is. And thus, Vick remains in the dark about Shawn and Juliet's relationship.
Back at the SBPD, the case is discussed with the team. Vick explains the dead body is Annabeth York, a low-level member of the Ambassador's staff who was pressuring the prosecutor and was a key component in getting the British student's murder charges dropped. She had, in fact, found a witness to confirm the accused student's alibi.
Henry pulls Shawn aside to warn him that his credibility as a psychic is in jeopardy because his vision was so specific, and that if the SBPD finds out he was at that party, he may get himself into some big trouble. But Shawn stays focused on solving the case and begins to question the Ambassador. Shawn predicts that the Ambassador was so upset by Annabeth's death because he was sleeping with her during the time of her death.