Contains spoilers for this episode and earlier episodes.
A flashback finds Dr. Brenner waking amid dead children and staff at Hawkins Laboratory, with a bloodied Eleven nearby. In 1986, Eleven lives with the Byers family in California and writes cheerful letters to Mike that hide how badly school is going. Angela mocks her presentation about Hopper and destroys her project. Eleven tries to retaliate with her powers, but nothing happens, leaving her exposed to the laughter of the other students.
Back in Hawkins, Lucas wants his place on the basketball team to help him escape being treated as a loser. The championship game clashes with Eddie Munson's Hellfire Club campaign, and Mike and Dustin struggle to find someone to take Lucas's seat. Erica joins the game and wins its final encounter while Lucas scores the winning basket elsewhere. Max, withdrawn since Billy's death, keeps her distance from her friends and speaks to the school counselor about her troubles.
Joyce receives a Russian doll and, after consulting Murray, breaks it open to discover a message claiming Hopper is alive. Meanwhile, cheerleader Chrissy suffers frightening visions and asks Eddie for something stronger than marijuana. At his trailer, she slips into a nightmare while he searches for the drugs. Eddie cannot wake her. A clawed creature approaches her in the vision, and her body rises toward the ceiling before her bones break and her eyes are destroyed.