After Cory teaches a lesson on truth, Riley and Maya struggle with whether or not it was right to lie to Farkle and tell him he's a good actor and if Maya should keep the locket she found, even though it doesn't belong to her.
Riley and Maya give schoolmate Smackle a makeover to attract Farkle. Meanwhile, Farkle recruits Lucas to his debate team in an attempt to distract arch nemesis Smackle, and Auggie is in despair over a break-up with his "girlfriend" Ava.
Cory divides his class into two fake companies for a lesson, one driven by profits and the other by making people happy, which brings out a terrible side of Farkle's personality. Meanwhile, Riley and Maya encounter a woman in the subway who is quite different than they first perceive her to be.
The kids face a trilogy of terror when Riley has a sleepover at Maya's with her Gammy Hart and pet ferret. Auggie confronts the monster under his bed, and Farkle tackles his most terrifying fear yet - playing softball.