Back at the Psych office, Shawn wants to take the day off, the beach is calling. Just then, a disturbed man, Robert Dunn, walks in asking for help. He claims he's being haunted and the ghost is trying to kill him. He even has strangulation marks on his neck to prove it. Shawn immediately believes the guy is crazy but Gus is strangely intrigued - turns out Gus spoke secretly to a spirit as a child. Shawn reluctantly signs on for the case, since he believes this will be easy because there are no such things as ghosts. They'll find who's doing this to him and have a fake exorcism, no problem.
At Robert's house, Shawn sees long red hair on some paintings and photos with Robert's face X'ed out. And the place is a mess. Robert asks them to stay the night. He hasn't been able to sleep. He's going crazy.
Shawn's already solved the case. Clearly, Robert's ex-girlfriend is mad and trying to drive him crazy. From the pictures, Shawn knows he dated a red head and since his place is a disaster, she's clearly not around any more. Plus, the X'ed out faces of Robert in all the pictures. They'll talk to the girlfriend tomorrow. There's no danger at all - until they wake up in the night to find the house on fire!
Meanwhile, Lassiter and Juliet are looking for a Regina Kane, Dr. Blinn's last scheduled patient before he was killed. They've tracked down a post office box for her but that's it. Shawn and Gus come across them and Shawn notices they are holding a medical file with Regina's name on it, he now knows where the police are looking.