Henry is sick, Shawn tells Gus. He called to cancel their weekend camping trip in the mountains and Shawn couldn't be more thrilled, until he catches his dad driving through town, the picture of health. Now Shawn has to know why he was ditched, and he and Gus follow Henry to the Monarch Lodge, where they discover Henry is a member. After Shawn perfectly repeats the secret handshake, they enter the lodge to find Henry in a room full of robed lodge members, surrounding a dead body on the floor. The brothers have called Henry in for help, but he insists he's retired both from the force and
The Santa Barbara police department is on high alert. Dwayne Tancana, arrested for the home invasion robbery turned murder of Isabella Cole, escaped custody on his way to arraignment by head-butting Juliet as they rounded a corner. Now it's a full on manhunt, and to Lassiter's chagrin, the victim's husband has hired bounty hunter Byrd Tatums to ensure his wife's killer is found and brought to justice. Juliet is eager to get out there and correct her mistake, but unfortunately Lassiter has to bench her at the office, ensuring her he'll use every resource to find Tancana.
Interim Chief Vick calls Shawn and Gus down to the station. She has something big and top secret to talk to them about. The guys are excited until she tells them she wants them to find her a new nanny. Her last nanny left, she hasn't slept in weeks and she needs them to psychically screen the candidates for her.
Two teenagers, Shockley and Goddard, come to the Psych office to hire Shawn and Gus for a case. They need help and the police won't take them seriously since they are kids. One of their teachers at the Meitner School for gifted students has killed someone and in two days, he'll kill again. The problem is, they don't know which teacher it is, who he killed or who his next victim will be. When they broke into school late one night to pull a prank, they accidentally hacked into a cell phone call being made from the campus.
Gus' Uncle Burton is in town for a visit, and since Gus has spent all his life trying to live up to his namesake's expectations, he does not correct him when he mistakenly hears that it's Gus who is the psychic detective, for fear of disappointing him yet again. That means that when Uncle Burton tags along on their investigation into the death of Vince Wagner, a prominent restaurant critic, Shawn must help Gus find clues while Gus pretends to be psychic. Shawn looks around and sees leftover containers and evidence of bad cooking. He leads Gus to a "vision," quickly disregarding the wife
Jimmy Nickels, Shawn and Gus' childhood bully, has called and is coming to see them at the Psych office. The guys are scared but determined not to give up their lunch money again, until they open the door to see that Jimmy has not grown an inch since they last saw him, which is one of the reasons he became such a successful jockey. He's come to hire them. He's been losing his races and he doesn't know why. Despite Gus' protests, Shawn agrees to take the case. He has felt guilty ever since he turned Jimmy in for hitting a teacher with a spitball, which led to Jimmy's expulsion.
Detective Lassiter is on a roll. He's closed nine cases in a row and since he's been on such a hot streak, the department hasn't had to call for outside help, leaving Shawn feeling very unneeded. When a dead body is found on the beach, Lassiter invites Shawn along to show him how it's done. At the crime scene, there is little to go on except puncture wounds on the body. Desperate to get on the case, Shawn looks at the marks and claims he knows who is responsible - a Tyrannosaurus Rex.
American Duos, Gus' favorite reality show, has come to Santa Barbara. Even better, its cantankerous host, Nigel St. Nigel has not only been receiving death threats and has already survived a couple of attempts on his life. He needs protection and does not trust the police. He needs someone who can anticipate his stalker's next move, yet can blend in and not attract attention. Shawn already has the perfect idea. He and Gus will become contestants on American Duos.
Shawn and Gus get called in for an important meeting in Chief Vick's office but when they get there they are surprised to find Special Agent Lars Ewing of the Treasury Department, who is in town on a counterfeiting case and has brought along his partner, Lindsay Leikin, a psychic who not only has had great success on this case already but is determined to prove Shawn a fake.
Shawn and Gus are at a restaurant having lunch, or more like breakfast in Shawn's case, who is eating cereal in an attempt to break the "Breakfast Served Until" barriers. As Shawn launches into his usual flirting routine with the waitress, Gus calls him on never taking relationships seriously. So Shawn, in an effort to prove him wrong, calls Abigail Lytar, his high school crush he reconnected with at his reunion, and asks her on a proper date. The guys are then summoned down to the police station. The Yin Yang Killer, a serial killer who was active when Henry was a cop then went silent,