Sister Jude pays a visit to Saul Goodwin, in private, out of her habit. He's a Holocaust survivor and a Nazi hunter. She gives him her files on Arden and tells him she thinks he was an S.S. doctor.
He tells her the S.S. have a tattoo of their blood type on their left bicep, but tells her not to look for it until he completes his work. "If he's who you suspect, the last thing you want to do is corner him," he says.
Back at the asylum, Anne brings Arden and his gunshot leg into Sister Jude's office at gunpoint. She tells Sister Mary Eunice to check Arden's lab. Frank comes in and holds his gun on Anne.
Anne wakes up in a straight jacket with Sister Jude at her bedside. She warns Anne she could end up on Arden's table. Anne tells her to go look at his operating table.
They did look.
Sister Jude looks through his operating theater but what remained of Shelley is gone and anything suspicious is cleaned up.
Sister Jude is summoned to meet with Anne's husband, who says her name is really Charlotte. Sister Jude suddenly feels stupid for believing her. He says she read the diary and they saw the play when she was pregnant and it all started after she had the baby and it wouldn't stop crying. He says she tattooed herself.
Thredson listens in and says it sounds like post-partum psychosis and it's dangerous to let her go home.
Anne doesn't recognize her husband and doesn't want to go with him. He shows her a picture of her with her son and she goes with him. Thredson tells Jude that sterilizing Kit is a mistake.
Waiting in their separate cells, Grace blames Jude but isn't sorry for what she and Kit did.
Sister Mary Eunice comes for Kit. She says Jude changed her mind and he's being released from solitary.
She tells Grace she's still having her operation in the morning.
In the middle of the night in her cell, Grace hears loud noises and sees a bright white light under her cell door.
In the common area, Lana takes her meds like a good little inmate. Thredon tells her to meet him by the staircase after dinner at 6 pm; they're leaving.
Kit waits for Thredson in his office. Thredson wants to tape Kit confessing to his crimes, so he can hear his own voice and remember them. If Thredson believes him, he'll tell the courts to keep him at Briarcliff and not send him to the chair.
As Kit confesses, Grace wakes up covered in goo surrounded by white light on a table, she sees a pregnant woman who introduces herself as Alma (Kit's wife). We see glimpses of green arms as Grace's belly is slit open and she screams.
Sister Jude leaves a message for Goodwin, saying it was all a mistake and to forget it. Arden lurks in her doorway. He asks what she found in his lab, but she says it was unexciting. He plans to press charges against Jude for his shooting on her watch. He wants her to grovel and when she doesn't, he promises to tell the Monsignor. "You're through here, sister, and you know it," he says.
Arden goes back to his office and takes off his pants to dress his wound. Sister Mary Eunice comes in and offers to do it for him. She apologizes for her behavior the night of the storm. He chalks it up to the barometric pressure.
"I know what you did, sister. Thank you for protecting me," he says, referencing her cleaning out his lab.
"Protecting us," she says, adding that he'll be free to continue his work when Jude is gone.
Cut to her dragging legless Shelley out of his lab.
He's impressed she was able to get her out to the woods.
"You'd be surprised, she weighed very little," Eunice says.
At a school at recess a little girl looks down a stairwell and starts screaming. She sees legless, boil covered Shelley crawling up the stairs. Her class and teacher come look and they all run screaming as well.
Charlotte's husband brings her back to the asylum. She screams as she's dragged away. Arden lurks.
Later, he visits her in solitary.
Sister Jude talks to Charlotte's husband, trying to convince him to give her more time.
Cut to him catching Charlotte trying to suffocate her child. He wants Thredson to examine her. Sister Jude sends Frank for him.
The clock says 6.
Thredson brings Lana a coat to put over her prison garb and hands her a box to carry out, telling her to just walk straight out the door. They walk.
Charlotte's husband runs into Arden coming out of her solitary cell. Arden suggests a treatment they could do tonight and have her home in the morning.
Frank finds Thredson outside, putting things in his trunk. He doesn't see Lana sitting in the front seat as he tells Thredson that Jude is asking for him. "I don't work here anymore, Frank. As a matter of fact, I never did. You can tell her I said that," he says.
Thredson gets in his car.
In the operating theater, Charlotte's husband watches as Arden prepares to do a transorbital lobotomy on her. Arden assures him it's perfectly safe.
Frank comes to tell Jude that Lana is nowhere to be found.
She tells him about taking in a baby squirrel for company when she was a kid. She forgot to feed him for a couple of days and he died. She prayed over him for hours and her mom threw him away when she came home. She was upset that God didn't answer her prayers.
Her mom told her: "God always answers our prayers, it's just rarely the answer we're looking for."
Sister Jude tells Frank it's over for her at the asylum. He tells her that with men like Arden around,she never really had a chance.
Jude takes off her habit and leaves the asylum.
Arden prepares to do the lobotomy, through Charlotte's eyeball.
Jude puts on her best red lipstick and settles in at a bar as Arden cracks away into Charlotte's skull.
Thredson brings Lana to his place, saying she can't go home because they'll look for her there. He tells her he has an appointment in the morning with Detective Speers to expose everything going on a Briarcliff. He goes to the kitchen to get her some wine. She picks up the phone and dials. He hangs it up, telling her that he's at risk until they go public tomorrow.
He tells her she'll win a Pulitzer. "You're the person to tell my story," he says.
He turns on a pale colored lamp shade. It appears to have nipples. His bowl of mints could easily be the top of a skull.
She excuses herself to go to the bathroom. She tries all the doors in the hallway, and finds most of them locked. She ends up in a room of scalpels and skinning instruments full of skins and skeletons.
"You make furniture?" she asks, quaking.
He tells her he makes the lampshades himself. Out of skin.
He hits a button and she drops through the floor.
Back at the asylum, Kit finds Grace bleeding from her operation. He can't believe they went through with it, Thredson had said he'd stop it.
Detectives come and arrest Kit for the murders he confessed to with Thredson. Grace, weak from her operation, croaks out that she saw Alma and everything Kit said is true, but he's already being taken away.
Lana finds herself chained to a tile floor in a basement with cleavers and knives on the wall. There's a body next to her. It's a very dead Wendy; she's been frozen.
Thredson explains he kept her fresh. Normally by now he would have removed the skin and head. "But we need to keep her around a little longer for our purposes. We're going to continue our therapy now, Lana. You can begin by kissing her cold lips," he says as he puts on his skin Bloody Face mask.
"Don't worry, she won't bite. I took her teeth," as he points to those embedded in his gruesome mask.
Jude sneaks out on her one night stand.
In a gauzy fantasy, Charlotte's husband comes home from work to find her cradling her baby, taking down her Nazi research and offering to make him a martini. Zoom in on a photo still on her wall of Adolf Hitler at a rally. A young Dr. Arden stands in the S.S. crowd behind him.