We begin back in Chicago, where Klaus and Co. are shopping for Rebecca, seeing as how she only has clothes from the 19th century. Stefan steps outside for some air and sees Katherine, who’s up to who knows what. She knows that Elena has the necklace Klaus is looking for and she wants in on whatever Stefan’s planning. Of course, Stefan says no, but you can’t blame him given Katherine’s track record.
Back in Mystic Falls, Elena and Damon are making chili for the founder’s party, which seems like another excuse just to flirt with each other. Rick walks in and immediately steps into the pseudo daddy role. He, like everyone else, notices that there’s something going on between Damon and Elena.
Upstairs, Jeremy wakes up with his dead vampire ex-girlfriend lying next to him, which is perfect timing, because Caroline just showed up to the Gilbert house with, surprise!, Bonnie in tow. They have a couple’s reunion, but Jeremy still sees Anna in the foyer mirror.
Sheriff Forbes brings Damon to compel Caroline’s father into forgetting everything that happened. When Damon asks why he thinks he can be able to control the basic instincts of a vampire, and he replies, “The mind is a powerful thing.”
Caroline, Elena, and Bonnie are cooking in the kitchen when all of a sudden Elena’s necklace burns her. Bonnie tries to take a look at it, but it burns her too. Turns out, Gloria’s trying to locate the necklace with Rebecca back in Chicago and know she knows where it is and who has it. Gloria asks for some time and space, so the rest of them go grab some lunch.
At the party, the girls are trying to figure out what’s going on with the necklace. Caroline decides it’s a good time to bring up what everyone is thinking but no one is saying: what’s up with the Damon deal? Elena denies that anything more than a mutual friendship is going on, but Caroline’s not letting it go. Saving Elena from some more awkward Damon talk, the necklace begins to levitate on its own. Somewhere else at the party, Rick tells Damon he needs to take a beat from Elena. Damon seems pretty pissed cause no one, and I mean no one, tells him what to do. Before they can start a brawl, Sheriff Forbes whisks Damon away to the Council meeting.
Jeremy contacts Anna again and she explains that it’s a push and pull. She also warns Jeremy about Vicki again, saying she feels a darkness whenever he lets her in. She tells him that she’s been all alone on the other side and puts her hand on Jeremy’s, forgetting that he can’t feel anything. Turns out, he can, and they put their hands together, reveling at this fact. Um, she’s dead, remember Jeremy?
Stefan returns to pay Gloria a visit, worrying about what she knows. She wants the necklace but Damon refuses to give her any information. She threatens to out him to Klaus, so Stefan makes a move to kill her or something. Stefan may be bad, but not bad enough, as Gloria’s too quick from him and puts him under a paralysis spell. Next thing you know, she has him tied up and performing some of her witch-y voodoo to get his “essence” to give her a connection. She continues to torture him until she gets all the information she wants, which she does. She finds out that Elena is the doppelganger and that she’s alive, which is why Klaus can’t create more hybrids. Just when you think they’re all royally screwed, Katherine pops up out of nowhere and sticks a mean-lookin’ knife into Gloria’s neck. It’s almost like she’s Stefan’s guardian angel. While cleaning up, Katherine tells Stefan she wants to be his partner-in-crime, for the second time. He says no, and that’s final.
Bonnie and Jeremy get down to business, looking through her witch books to figure out what the deal is with the necklace. All of a sudden, Anna appears and warns Jeremy that she senses the darkness, and then everything goes up in flames. Jeremy’s a little freaked out and goes into the bathroom, where Anna pops up again. He tells her she’s got to stop popping up everywhere all the time, but in her defense, it’s a two-way street. She says the reason why he hasn’t told Bonnie is because he still cares about her. It’s all too much for Jeremy and he decides to shut her out and tell Bonnie the truth.
Just when the council meeting is about to end, Bill Forbes walks in. Apparently, compulsion doesn’t work on him. He wants to control the council and put vervane in the town’s water or else he’s going to oust Damon. When Damon tells Elena and Rick about this, Elena says it might be a good idea so Damon can control himself, he flips a switch. Rick steps in, so Damon kills him, so he can go back in and deal with Bill. He’s not going to kill Bill, just torture and feed off him. Caroline comes in to save her dad and beat up Damon. Damon scoffs and has her pinned as he reminds her he’s older and stronger. That might be true, but Caroline’s angrier. She throws him off and her and her dad get out of there.
The next morning, Rick finally wakes up—probably to the sound of Damon making him a drink. He’s furious that Damon killed him, calls him a name, and then leaves. Looks like their friendship is over. Rick goes to Sheriff Forbes and Mrs. Lockwood and tells them he wants a place in the Council. They tell him that’s not how it works, but he’s insistent and pretty much invites himself to the next meeting.
Elena and Bonnie chat over some lunch at The Grill and Bonnie returns the necklace to Elena. She also asks her if Jeremy had told her anything about seeing his dead exes, but before she can get an answer, Elena’s gone. Next thing you know, she’s at Damon’s door, except it’s not really Elena. Since Stefan turned her down, Katherine’s looking for a diabolical partner-in-crime, and who better to ask than Damon? Now that she has the necklace, there can only be one place where they’re headed.
Stefan brings his solo act to the warehouse of Klaus’s dead siblings. He’s about to open a coffin and un-dagger them when Rebecca walks in. He tries to prod her for some information about why they were running, but she only doesn’t say anything because she knows Klaus will be angry. She tells Stefan that she knows about the whole Klaus-killed-the-girl-I-loved-who-happened-to-be-the-doppelganger situation and kisses him, asking him if he’ll ever love like that again. Wistfully, he says maybe one day. It seems sweet, until Rebecca reminds him that she can always tell when he’s lying. Cue Klaus, who’s pissed (what’s new) because Gloria’s cleared out, and that’s when Rebecca tells him that Stefan isn’t with them and that he’s been asking about ‘Michael,’ the vampire hunter. Klaus knocks him out, and he later wakes up in same dingy crate. Klaus tells him he’s not mad, but he wants to tie up some loose ends, opening the door and revealing where they are. Welcome back to Mystic Falls, Stefan.