Picking up where the premiere left off, Aly wakes up, screaming, as a clown is in bed next to her. She runs downstairs to Ivy and they head upstairs with a knife to get Oz. When they get upstairs, there's nothing.
Aly says that she thinks something is wrong with her, and that she doesn't know what is real and what isn't. Being the supportive wife she is, Ivy comes her down and supports her.
In Oz's room, someone with a gloved hand turns off his night light. He wakes up and gets out of bed. When he turns the light back on, Twisty the clown is standing there. Oz hides under the best and another clown comes after him. Running into the bathroom, Oz hides in the tub, locking the door behind him. The clowns break through the door and unlock it.
Aly and Ivy are in bed and hear Oz cry out for them. He's still in bed, having a night terror. Aly tries to comfort Oz, but he says he wants Ivy instead.
A reporter tells the story of Kai being beaten by the migrant workers. New characters Meadow and Harrison filmed the incident and say that the people should be brought to justice. Kai talks about President Trump saying those people are criminals. He then announced that he’s running for City Council to replace the councilman that was murdered.
At her house, Aly looks across the street to see people moving barrels into the old neighbors house. She walks over to see what's going on, and the couple from the news, Harrison and Meadow, have moved in. Aly is caught snooping by Harrison, who is dressed head to toe in his bee-keeper outfit. She leaves.
At the restaurant, one of the kitchen supervisors gets into it with a Latino employee. Aly shuts it down and makes the men get back to work.
Back at the house, Winter has just gotten Oz home from school and he runs upstairs. She has a present for him, and it's a Twisty doll. Winter makes it dark in the room and talks to Oz about fear, saying the clowns won't come back for him. Oz is afraid because people are already moving in across the street, and Winter says that she's going to take his fear for him.
Aly and Ivy come home and Oz is across the street with the new neighbors. Winter came back to get his jacket. Aly and Ivy run across the street to find Harrison showing Oz his bees. Aly gets nervous when she sees the honeycombs. Harrison and Meadow introduce themselves. Aly thinks it's odd that someone moved in so soon after the murders at the house. Harrison talks about beehives, saying that the hive is the perfect community because they're all slefless.
Inside, Meadow pours everyone some lemonade and makes it clear she's a bit of an odd one. She can't stay in the sun, she adores Beyonce, and the couple runs a Nicole Kidman fan club. They explain that Harrison is actually gay and they got married because they had a pact back in high school. Aly says they need to go and the family leaves.
Back at home, Aly and Ivy talk about the new neighbors. Ivy thinks they're fine but Aly is incredibly suspicious. Oz is having trouble sleeping and he tells his moms that he's scared. He crawls in bed with them before Ivy gets a message about the security system tripping at the restaurant. Aly volunteers to go in her place.
The alarm is going off at the restaurant and Aly goes inside. After turning it off, she hears something back in the meat locker. Hanging amongst the dead animals, Aly finds the body of the kitchen manager from earlier.
Back at home, Aly watches as someone installs bars in front of a window. Her therapist is in the neighborhood and he stops in with Ivy. He and Aly talk in the kitchen, about her finding the man in the restaurant. Aly says she's the one who killed him because Roger was still alive when she found him. He convinces her that she didn't kill him because she was trying to help him.
Aly says that the police, seen in a flashback, only wanted her to pin it on the bus boy Pedro, the Latino man that was arguing with Roger. Aly and Ivy stick up for the employee saying he would never do that.
In the present, Aly says that her phobias have all flared up since the election, but that she's going to do everything to keep her family safe.
Aly is across the street and Harrison shows her that he has a bunch of guns. He gives her one to help convince her that she can protect her family.
It was a flashback and Aly shows her therapist that she has a gun. He tells her she should tell Ivy and she refuses. Outside, Ivy talks to the therapist and he says he worries about her a bit and that she needs to keep an eye on her. She says the nanny can probably help.
After Ivy leaves, Aly is alone in the house when someone knocks on the door. It's Kai and he came to tell her about his campaign for city council. He talks his usual creepy talk and Aly refuses to let him. Kai plays on Aly's fear and he continues to try and get in her house, but she stands her ground. He finally leaves.
At the restaurant, Pedro talks to Ivy about the murder, saying the cops came to his house and questioned him like a suspect. Ivy assures him that she believes he's innocent.
Back at the house, Winter gets Oz to bed and he tells her that he's still worried about the clowns in his dreams. Winter goes downstairs and Aly is looking scared in the kitchen, she says that she doesn't want to take her medicine. Winter suggests red wine and bath salts instead. She runs a batch for Aly and leaves to take care of Oz.
Later, while Aly is in the bath, Winter comes back into the bathroom. She sits on the edge of the tub and starts talking to Aly about getting relaxed. After scrubbing her back, Winter starts touching Aly under the water, telling her that it's between the two of them.
The alarm in the house goes off and the power shuts down. A clown enters Oz's room, but tells him he's just asleep and Oz goes back to bed.
Winter tells Aly that Oz is okay and she grabs her flashlights and phone. Harrison knocks on the door and says power went out everywhere and gives them some candles. He tells them to stay inside and lock up. Winter says she needs to go take care of her things at her house and she leaves.
Aly doesn't want to be alone and calls Ivy. Ivy says that she can't be home for a while because she needs to get the backup generator going at the restaurant. Aly's phone dies and Ivy gives Pedro a box of things to take over to Aly at the house.
As Aly walks around the house, she hears plenty of noises in the dark. Outside, the creepy ice cream truck parks on the street. A clown grabs her and blows her candle out, and Aly goes into the house to find another clown on the stairs. She goes and grabs her gun and walks around the house with it pointed in front of her.
Aly wakes Oz up and tells him they need to go. As they open the door outside, someone is standing there, and Aly fires the gun. It was Pedro.