On the premiere episode, in the town of Harmony, Ethan Crane and Gwen Hotchkiss wake after spending the night on the beach at Dune Point making love. She makes fun of his concern that she's leaving for Paris today and laughs that he'll have plenty of women in Harmony to enjoy. He suggests that she meet up with his Aunt Sheridan while there. In Paris, Sheridan Crane prays in church for the chance to live in happiness. She confides in a nearby priest that a close friend died and she fears that she will meet the same fate. She then takes flowers to the memorial for Princess Diana and remembers her last phone conversation with her. Sleeping, Grace is troubled by an angelic childlike figure who warns her about nearby trouble. Seeing what Theresa has done to ruin a photo of Gwen with Ethan, Whitney smiles when her friend goes on and on about how rich and famous she will be once she's older. Eve downplays it when T.C. boasts that their daughter Whitney will be the Olympic tennis player he never was. New police chief Sam Bennett tries to stop the arguing when his daughters Kay and Jessica start the day off verbally jousting. Fuming that his mother is working for a family like the Cranes, Luis tells his brother Miguel that any money he earns from a job on the fishing boat will go towards his college education. On patrol, Luis threatens to arrest Ethan for lighting a fire on the dune.
T.C. congratulates Sam on his promotion to chief of police. Irked by Ethan's arrogance, Luis informs the haughty young man that he's under arrest. As Eve encourages her friend to open up about what's bothering her, Grace is startled to see a child's spirit once again manifesting itself in the air. Meanwhile, a worried Sam confides to T.C. how his wife seems so distant and strange lately. Theresa tells Whitney she has plans to marry Harmony's most eligible bachelor--even though they have yet to meet. After fainting dead away, Grace explains to Eve how she must speak with the little girl who has been haunting her dreams. Sam orders a fuming Luis to release Ethan. In Paris, a disappointed paparazzi misses his shot at capturing Sheridan on film. Tabitha materializes in the Bennetts' garden after sensing danger ahead. Kay yearns for Miguel to look her way. Gwen encourages a reluctant Ethan to get out and start meeting the "ordinary" people of Harmony instead of hiding in his family's ivory tower. Eve wonders if the mysterious child is linked to the 20-year hole in Grace's memory. Tabitha vows to defeat her small opponent with a powerful new spell and claim the Bennetts' souls.
At the carnival Kay blasts Jessica for putting up the sign revealing she loves Miguel. Theresa is embarrassed when she watches Ethan accidentally knock over a ladder and spill paint all over his head. She becomes upset further when he blames her for what has happened and is rude to her. Later, she's upset when Luis reveals that Ethan was at the carnival. Eve warns Sam about the "incident" with Grace earlier and suggests that it could be the result of her working too much. Meanwhile, Tabitha follows them and gloats as she relishes their confusion and concern. Grace panics when she hears the voice of the little girl again. In Paris the paparazzi use motorcycles to chase Sheridan in her car through the streets. As the chase heats up, Sheridan's car crashes in the same tunnel where Princess Diana died. The paparazzi argue over what to do until they hear police sirens. Sheridan is placed on a stretcher and quickly taken to the hospital. Meanwhile, Gwen flies to Paris on the Concorde, expecting to be met by Sheridan.
In Paris, Gwen rushes to the hospital upon learning of Sheridan's accident. Meanwhile, in her unconscious state, Sheridan hears her dear Diana's voice calling to her from beyond the blinding white light. Though Whitney reminds her friend that fantasizing about a job at the country club or at Lowell's is unrealistic, Theresa vows to claw her way into the upper crust of Harmony society one way or another. Under the guise of being neighborly, Tabitha brings a plate of goodies over to the Bennetts' place. Diana instructs Sheridan to go back to the land of the living. After telling Gwen he must leave the ER for an important appointment, Jean-Luc is revealed to be secretly two-timing Sheridan. Sam confides to Eve and T.C. his fear that Grace was never meant to be his for long. Alone in the bedroom, the slumbering Grace is suddenly levitated into the air and whisked out the window. Luis encourages his sister to take her head out of the clouds and concentrate instead on getting into college. Ethan is outraged by his father's indifference towards Sheridan's plight. Jessica begins work on a Bennett family tree. Pilar grows agitated when Luis urges her to either declare her long absent husband legally dead or else obtain a divorce. Out in the yard, Grace once again encounters the glowing little girl, who warns that evil is coming her way.
Luis reminds an agitated Pilar that they can not refinance the house unless his father's name is removed from the deed. At the sprawling Crane mansion, Ethan questions his mother about her obvious interest in Harmony's new police chief. The mysterious little girl warns Grace to be on her guard against an approaching evil. Ethan drops by the Lopez-Fitzgerald house to speak to Pilar and is annoyed to come face to face with a growling Luis instead. Sam patiently attempts to humor his wife's claims that she's being constantly visited by a child no one else can see. Caressing her handgun, Ivy muses about settling scores with Julian once and for all. As Tabitha completes work on "Timmy", the devil doll comes to life to join his creator in her dark plan. Theresa blows off her first day of work at the Burger Hut and tells an exasperated Whitney she knows Ethan Crane is about to change her life forever. In Paris, Sheridan's doctor assures her she is suffering from nothing worse than a mild concussion.