Henry checks up on Shawn's theory and heads to Woody the Coroner's office to check the preliminary report on the cause of death. Woody says that she knew her attacker and had been strangled.

Shawn manages to get back into the Ambassador's home to investigate. There, he overhears a conversation that proves the Ambassador didn't kill the girl. In fact, the Ambassador's next step is to hire Shawn to help find the girl's actual killer. And with that, Shawn is granted temporary diplomatic immunity. Shawn searches the bedroom where he found the dead body. There, he Shawnvision Flashbacks to what he saw in the closet: shoes, standing in a pigeon-toed position. He remembers seeing a distinct pair of shoes through the opening in the closet that night – only this time, the shoes are not there. The Ambassador informs Shawn that he never keeps shoes in there, and from that, Shawn figures out that the pair of shoes were actually on a human body, and that the killer was likely hiding in the closet right after he murdered the girl. The Ambassador thinks the killer may be the "intruder" from earlier – which unbeknownst to them, was actually Shawn.

Shawn quickly squelches the Ambassador's theory about the intruder being the killer and then realizes that the last car to leave the party belonged to Colin – the student who's murder charges got dropped. Now they think Colin killed the girl. Shawn then leads the team to Colin's host family's house. He meets the Ambassador's public affairs officer, Charles Wignall, who is also part of Colin's host family. Right then Juliet gets a call that they found a fingerprint on the body and they are on their way to make an arrest. The fingerprint belongs to Randa, who we learn didn't kill her, but instead moved the body to protect the Ambassador from getting accused of her murder. So now they are back on thinking it was Colin who was the culprit. They find Colin and a chase ensues, which ends with Shawn, Gus, and Colin in jail.

Lassiter informs Shawn that his diplomatic immunity has been revoked, and then presents him with a photo taken at the party… a photo of Shawn. A photo that may very well prove Shawn was there the night of the woman's murder and that he has been lying this whole time. Lassiter wants an explanation, but Shawn vehemently denies it's him in the photo. Lassiter then straps Shawn to the lie detector test. Shawn ends up telling the slight truth – but ends up leaving the stuff about him being at the party out. He then comes clean about his and Juliet's relationship, and admits he loves her… Juliet is pleased to see he is telling the truth about his affections, as the lie detector doesn't skip a beat. Then Lassiter asks him the ultimate question: "Are you psychic?" Shawn is able to pass the lie detector test without revealing the actual truth. He beats it, and Lassiter is shocked. Then something dawns on Shawn, and the last thing Shawn says while hooked up to the polygraph is this: "I know who killed that woman."

They head back to Colin's host family's home. While in the house, Shawn SV's a pair of feet walking down the stairs – the feet belong to the student's host, Charles Wignall. This vision quickly causes him to Shawnvision Flashback to an image of the same exact pigeon-toed pair of feet he saw in the closet where the girl was left murdered. This must be their guy! Shawn further proves that Charles is the murderer when he exclaims that Charles was the one driving Colin's car home from the party, and that he was the last one to leave. Charles is then arrested, and the case is finally laid to rest.

Back at SBPD, Lassiter gives Shawn a talk about his relationship with Juliet – that if he hurts her in any way, he will have no problem discharging his pistol. Shawn is actually sort of touched by this exchange.

Then, in one last flashback, we see how Shawn was able to pass Lassiter's lie detector test: Henry had a polygraph in the basement and taught Shawn how to "believe the lie." And Shawn was able to ever since.

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