Sister Jude, in civilian garb, meets Sam Goodman, a Nazi hunter, and Holocaust survivor, at Mother Claudia's recommendation. She gives him Arden's personnel file as he explains how false records can be made. He urges her to stay away from Arden, lest he grows suspicious.
Anne is still holding Arden at gunpoint when Sister Mary Eunice and Frank intervene. She is sedated. As she comes to, she is questioned by Sr. Jude, who explains that Arden was rushed to the hospital and that she and Frank searched Arden's lab, but did not find the legless creature that Anne claimed to have seen there.
Anne's husband arrives at Briarcliff and informs Sr. Jude that her real name is Charlotte Cohen Brown. He explains that his wife is "high-strung" and obsessed with Anne Frank after seeing a play about her life. After the birth of her son David, she tattooed her own arm and made a wall of Nazi-related memorabilia in the den. Dr. Thredson appears and casually diagnoses Anne with postpartum psychosis. Sr. Jude allows her to be released to her husband, but the woman claims not to know him and insists that she is Anne Frank, but a family photo snaps her to reality. Dr. Thredson believes Sr. Jude is making a mistake by releasing the woman and further berates her for authorizing sterilization of Kit and Grace.
Grace and Kit speak through the wall separating their cell, vividly imagining that they are together. Sr. Mary Eunice releases Kit from solitary in time for dinner, saying Sr. Jude changed her mind about his procedure. Grace thinks she is similarly reprieved, but the nun tells her she will still be going under the knife in the morning. After loudly protesting until she becomes tired, Grace is awoken by the loud rattling of her cell door. A bright and unearthly light shines into Grace's cell under the door, reflecting in her eye.
It's medication time in the day room. Lana is interrupted by Dr. Thredson, who tells her that they will be leaving together after dinner and to meet him at the staircase. He visits Kit and sets up a reel to reel recorder to record and play back Kit's recollections, effectively confessing to the murder of his wife.
In "the light", Grace encounters a naked and pregnant Alma before she is probed by an extraterrestrial.
Arden is upset about the snooping in his lab while he was at the hospital, and that Sr. Jude sent Charlotte home after injuring him. He wants the nun to beg for forgiveness. When she refuses, he says he will demand that Mnsgr. Howard fires her. He leaves to dress his wound and Sr. Mary Eunice offers her assistance. She explains that she has removed Shelley from the lab. Sr. Mary Eunice hints that Arden's position of authority in the asylum in the absence of Sr. Jude would require a "strong right hand".
In a schoolyard nearby, a small girl runs screaming from "a monster" she sees in a stairwell: Shelley, having somehow made a long crawl from the woods.
Charlotte's husband returns her to the asylum, fearing to leave her alone with their son. He apologizes to Arden for her shooting him but wants Dr. Thredson to treat her. Sr. Jude says that he is welcome to try to consult with him, and sends Frank to find the doctor, who escapes successfully with Lana. He tells Frank to relay that he doesn't actually work there and never did.
Frank informs Sr. Jude that Lana is missing, off grounds. She laments her role, and that she must leave it. She takes off her habit in her room and goes to a bar in civilian garb, where she is offered a drink by a nearby drinker.
Arden, with her husband's consent, lobotomizes Charlotte.
Dr. Thredson takes Lana to his home, saying they will see the police in the morning. She tries to phone her friend Lois, but Dr. Thredson stops her. Sharing a glass of wine with her, he anticipates she will win a Pulitzer for telling his story. She doesn't initially realize what that means. As she sits in the lounge room, Lana notices peculiar markings on the lampshade that resemble human skin. She also focuses on the coffee table bowl, which now looks suspiciously like a skull. Dr. Thredson's home is subtly decorated with human body parts. Lana begins to realize that she is in danger. An exploration of his home uncovers his "furniture making" workshop, where he processes human skin and bones. This confirms her fear. He catches her snooping and drops her through a trapdoor.
In the day room at the asylum, Kit notices Grace bleeding vaginally. He tries to get help but is interrupted by the police who are armed with Kit's taped murder confession. Grace is startled out of her trance-like state by the commotion of the arrest. She screams to Kit that he is not insane and that she has seen his wife, Alma.
Lana wakes up, chained to the floor in Dr. Thredson's hidden workshop. She is horrified to discover Wendy's corpse, thawing on the floor beside her. Dr. Thredson appears and says that Lana is to continue "therapy" with him by kissing Wendy's cold lips. He explains that he has removed the teeth, allegedly so as to soften the experience, and dons a mask that displays them. The mask clearly displays his long-hidden secret identity: he is the original Bloody Face, and most likely responsible for the murders Kit is accused of.
Sr. Jude awakens in the bed of the man who had bought her a drink the night before and dresses carefully while making sure not to wake him.
Charlotte is now an adoring, pliant housewife and a doting mother. She has begun to pack away her wall of Holocaust photographs and articles and seems happier than ever. A remaining photo shows a young Arthur Arden (Hans Grüper) amongst the Nazi officers surrounding Hitler.
- Joseph Fiennes (Timothy Howard) is credited but does not appear.
- Commentary: Stack, Tim (2012-11-15). Ryan Murphy on the Bloody Face reveal and a major clue about the aliens (en). Inside TV.
- The wolf's head cane that Dr. Arden carries is identical to the one often carried by Barnabas Collins in the original series of Dark Shadows.
- This episode reveals that Thredson is Bloody Face and that Arden is a former Nazi named Hans Grüper living under a false identity.
- The name "Hans Grüper" may be a reference to Hans Gruber, the antagonist of the first Die Hard film.
- Sam Goodman shares his surname with Harry Goodman, a defense attorney from Murder House.
- What are Sr. Mary Eunice's intentions towards Dr. Arden? Is she attempting to put him into power so as to manipulate his behavior, or did she release Shelley in order to expose him and the rest of the asylum?
- Is the Bloody Face seen alive and well in "Nor'easter" Dr. Thredson, grown old and grey? If not, who? An admirer? A disciple? A successor? A descendant? Lana?