Shawn and Juliet have broken up, and Shawn is moving out of their shared home. Juliet tells Shawn she placed an ad on Craigslist for a new roommate and Shawn is immediately alarmed. He believes Craigslist is a cesspool filled with psychos and that Juliet has put herself in danger in doing so. Juliet insists that Shawn is overreacting and that she can take care of herself. Before Shawn leaves, he tells Jules that he still loves her and that he isn't going to give up on them.
We come up on Shawn, lying down in the Psych Office, wondering what just happened at Lassiter's wedding. Did Juliet really just find out he wasn't a psychic from a piece of paper she found in his jacket? Or was it all just a horrible dream? From there, the episode unfolds in the style of the film "Sliding Doors," as Shawn experiences two separate timelines set off by a "what if?" scenario. One timeline shows what would have happened if Juliet never found out that Shawn wasn't psychic; it shows them happy, in love and thinking about the next step in their relationship.
We open on Chief Vick giving a briefing on a local crime boss named Max Rizzo, or "Max the Axe." She tells the group that Herb Pollock, Rizzo's long time accountant, fled Rizzo's organization with a sizeable amount of Rizzo's cash in addition to copies of all of his financial records. The chief informs them that if they can get to Herb, they can get to Rizzo and finally take him and his organization down for good.
Shawn gets a visit from a woman named Zola, a contortionist from a show called Le Cirque, needing help locating the star member of their troupe, Francois. Shawn agrees to meet her at their fairgrounds later that day to get a psychic reading on the place.
In a flashback to 2006, Shawn and Gus are backstage at a "Billy Lipps & The Guys Behind Me" concert. The second Billy gets off stage, Lassiter is there to inform Billy that the SBPD is bringing him in for questioning regarding the murder of Melinda Lane - a woman who drowned in the pool at his mansion years ago. Billy's biography just came out and apparently there is information that points to Billy being the murderer. In that moment, Shawn and Gus urge Billy to somehow exonerate himself, but Billy has no explanation or alibi. He doesn't even remember what really happened that night.
We open on Shawn and Juliet's new apartment. They have just moved in together and are hosting a housewarming party. Among the people in attendance are Juliet's mom Maryanne and her stepfather Lloyd, an accountant. Shawn thinks it would be a great idea for Henry and Lloyd to become friends. Juliet agrees, but doesn't think they should push it; she thinks they should let a friendship between the two happen naturally. But Shawn doesn't listen and decides to go ahead and set up a lunch date for Henry and Lloyd.
In a "found footage" style episode, Shawn and Gus join two student filmmakers, Kate and Chavo, in their attempt to make a documentary on the discovery of Bigfoot. They plan on using the finished product to win the Student Academy Award. We learn that Shawn found Kate and Chavo's blog while searching the Internet for "Harry and the Hendersons." Once Shawn discovered Kate and Chavo's plan to find Bigfoot in the woods of Santa Barbara, he asked to be a part of it. But Shawn knew Gus wouldn't join in on the fun unless he was lead into the forest under false pretenses.
Madeline and Shawn bring Henry back from the hospital. Madeline says she can only stay a couple days and that it is her wish that Shawn take care of Henry after she leaves.
Later that day, after realizing the lease on his apartment is up soon, Shawn comes up with a plan to move in with his father to help take care of him until he is better. When Shawn tells Juliet this news, she is disappointed because she thought maybe Shawn would move in with her when his lease was up.
We pick up where we left off at the end of last season -- Shawn has just realized his father’s life is in danger. He rushes to find him, but it’s too late. One of Henry’s old partners, Jerry Carp, has already shot Henry because Henry found out Jerry was involved in a police scandal years ago, and Jerry needed to keep Henry quiet. Shawn rushes Henry to the hospital. After Henry makes it out of surgery okay, Juliet urges Shawn to not get involved with catching Henry’s shooter. Shawn doesn’t listen; he recruits Gus and they set out to find and arrest Carp.