The "European Pilot" is identical to the broadcast pilot up to the point that Sheriff Truman says, "It must have happened about this time, 24 hours ago." The action then switches to Sarah Palmer, asleep in her living room, having visions of herself looking for Laura on the morning of Laura's murder. Suddenly, she sees the face of BOB looking through the rails of Laura's bed. In the series version of the pilot, this is intercut with footage of a second, different vision: a gloved hand digging up Laura's locket, at which point the episode ends. The BOB footage would later be recycled in the series when Sarah has a vision of BOB in the presence of Leland and Dr. Hayward.
What follows is a description of the remaining events of the "European Pilot." During Episode Two of the series proper, Cooper has a dream, which actually comprises of all of the events detailed below, as well as Sarah's vision of Bob's face. The episode ends with Cooper waking up and telephoning Sheriff Truman to tell him he now knows who killed Laura. Although the dream sequence itself only utilises some of the footage - mainly the One-Armed Man, BOB in the basement, and Cooper in the red-curtained room with Laura - Cooper gives a full account of his dream at the beginning of the following episode. The reason the footage was reused, whatever the context, was simply because David Lynch liked what he shot for the ending and wanted to incorporate it into the series.
Sarah calls Lucy at her home and tells her that she suddenly remembered that Laura's killer was in Laura's room that morning, and that she saw his face. Lucy-- who is playing paddle ball while Andy practices the trumpet--tells Sarah that she's going to contact Sheriff Truman and Deputy Hawk (here referred to as"Tommy 'the Hawk' Hill") to come draw a picture of the killer. (An interesting detail, as it is well established in the series that Deputy Andy Brennan is the Twin Peaks Police Department's resident sketch artist.)
Next, we see Cooper asleep at the Great Northern. He receives a call from the One-Armed Man, who tells Cooper to meet him at the hospital. Immediately after Cooper hangs up, he's contacted by Sheriff Truman, with news of Sarah's vision.
Cooper, Hawk, and Truman convene at the hospital, where they meet the One-Armed Man--calling himself Mike--in the autopsy room. Mike tells a story about he and BOB being a pair of serial killers, using phrases such as "lived among the people" and "the species" to indicate that he and Bob are not human. Mike then says that he saw the face of God and cut off his arm, because it bore a tattoo that was a mark of "being touched by the devilish one." The deputies then show Mike two sketches, one of BOB, one of a little bald man. Mike correctly identifies the sketch of BOB, and then says that BOB has been living in the hospital's basement.
Everyone travels down to the basement, where BOB is kneeling over a circle of burning candles arranged around a mound of dirt. (BOB's costume is different here than it was in the series--instead of a denim jacket and jeans, he wears a leather vest with no shirt on underneath and has a tattoo on his shoulder reading "FIRE WALK WITH ME.") BOB recites a poem about his "death bag," and then says, "You may think I've gone insane, but I promise you, I will kill again!" (This is the same thing he says in the interrogation room - through Leland - in Episode 16). Mike then charges into the room and shoots BOB to death. BOB dies; suddenly, Mike clutches his chest and says to BOB's corpse, "Wait until you get yours," then dies. Cooper stares at the two men's bodies and says, "Make a wish." A gust of wind comes out of nowhere and blows out BOB's candles.
The scene then cuts to the red-curtained room, with the caption "25 Years Later." Cooper, with gray hair and covered in wrinkles, is sitting across from Laura Palmer and the Man From Another Place. The Man From Another Place tells Cooper that his favorite gum is going to come back in style, and that "Laura" is actually his cousin. Cooper asks "Laura" if this is true, to which she replies that she knows she looks like Laura Palmer, "but sometimes my arms bend back." The Man From Another Place then tells Cooper that he and "Laura" are from a place where there is always music and birds singing. A strobe light turns on in the ceiling, jazz music begins to play, and the Man From Another Place begins dancing. "Laura" walks to Cooper and tells him something that the audience cannot hear. Cooper and "Laura" then watch the Man From Another Place dance; and as he dances, the credits roll.