Laura tells Greg that Richard has remarried and she's going to bring the boys to visit him. Jill tells Gary about memories of Peter growing up. Police find Olivia's locket on Peter's body, but don't know who ""OC"" is. Police question everyone at Lotus Point, and several people tell them about Abby's fight with Peter. Abby explains it was just a spat, that she felt Peter was taking up too much of Olivia's time on the drug committee. A lot of people personally suspect Abby. Olivia doesn't want to go to the funeral, but Abby tells her it would look suspicious. Gary hears Olivia begging Abby not to make her go inside. Gary tells Abby that he thinks Olivia killed Peter and Abby is covering for her. Abby slaps him.

Al Baker starts to hang around Mac's office, and Peggy suspects he's homeless. Mac agrees to let Al sleep in his office. Peggy comes by with dinner, and finds the office filled with homeless people. Paige has nightmares, and Mac thinks it's odd that Paige left Peter several friendly messages when he knew she was mad at him. Olivia's scared to talk to Mac and Detective Garcia, and runs to Val's instead of meeting with them. Gary wants to get an attorney, but Abby says that will just make her look guilty. Detective finally questions Olivia, and takes out the locket. Olivia says she had given it back to Peter. Detective. Garcia pats her on the shoulder, but is really taking fibers from her school uniform. The fibers match fibers found on Peter's body, and police go back and accuse Olivia of the murder. Abby says she killed Peter.

Laura returns home and tells Greg she left the boys with Richard. Jill's angry that Gary doesn't think Abby killed Peter, and she tells him to stay out of the investigation.Out on bail, Olivia tells Gary that Abby killed Peter because of her. Gary laughs with relief, because he knows that Olivia didn't kill him. Gary calls and tells Abby, who then sits down with Olivia to talk. They explain how they each thought the other had killed Peter, and laugh and cry and hug. They go to the police and tell the truth. Paige continues having nightmares, and Mack asks her about her friendly phone messages to Peter. He asks her to tell him everything that happened at her last meeting with Peter.

Lilimae is worried that Val isn't getting over Ben, and tells her she should try smile therapy. Al lives in his station wagon, and brings it to the MacKenzies to show Mack. Lilimae is very rude to Al, so he tells her to try smile therapy. Val buys a sportscar. She tells Gary he is the father of the twins. Jill tells Gary that she is sick of his ex-wives, step-children and secret children, and moves out. Later they make up, and she moves back in. Paige admits to Mack that Peter fell on a spindle when they argued. Since it was an accident, the police don't press charges, but Mack says she needs to apologize to people she hurt. Paige apologizes to Greg, who says she's lucky that Mack is her father because he'd hang a snot like her out to dry. Paige tells Abby she's sorry Abby is off the hook, and Abby says that she is going to get Paige for this. Laura quits Lotus Point, and tells Greg in a round-about way that she is dying.