As Stefan and Damon try to figure out the identity of the new vampire in town, Stefan gives Elena jewelry filled with Vervain to protect her family and friends. Hurting for money, Matt takes a job at the Mystic Grill, where former high school football-star Ben, works as a bartender. Ben comes to Bonnie’s aid when he notices Damon is bothering her. Damon and Stefan accompany Elena to a school dance with a 1950s’ theme, where Alaric introduces himself to Damon.
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Damon takes a trip to Georgia, where he surprises an old flame, Bree and enlists her help to figure out how to open the tomb. In the process, Damon comes face to face with someone who is determined to make him pay for past wrongs. Stefan opens up to Grams in his effort to help Bonnie overcome her fears and accept her powers. While researching his history paper in the public library, Jeremy meets a cute-but-geeky girl named Anna who has her own theories on the folklore of Mystic Falls. When Damon returns from Georgia, Stefan is waiting with news that will change their world.
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Stefan and Damon discover they have some competition to deal with, and Elena makes a devastating discovery.
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A mysterious new history teacher, Alaric Saltzman arrives at the high school. When Elena, Bonnie and Caroline hold a séance, the results are stranger than any of them expected. Damonfinally reveals to Stefan the stunning reason he has returned to Mystic Falls.
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On his birthday, Stefan is surprised by a visit from Lexi, one of his oldest friends. Still upset by the events at the Halloween haunted house, Elena does her best to stay away from Stefan, but Lexi gives her some unsolicited relationship advice. Elena and Jenna are surprised by a change in Jeremy’s behavior. At Damon’s insistence, Caroline tries to get his medallion back from Bonnie. Finally, Damon’s offer to help Sheriff Forbes has sudden and tragic results.
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As Vicki’s (Kayla Ewell) behavior becomes more dangerous, Stefan (Paul Wesley) tries to help her. Elena (Nina Dobrev) tries to convince Jeremy (Steven R. McQueen) to stay away from Vicki. Caroline (Candice Accola) gives Bonnie (Katerina Graham) a necklace she took from Damon (Ian Somerhalder) to wear with her Halloween costume, and when Damon tries to take it back, he is surprised by Bonnie’s abilities. Bonnie discusses the incident with Grams (guest star Jasmine Guy) and learns more about her family’s past. Trying to cheer Vicki up, Matt (Zach Roerig) takes her to the high school’shaunted house, but the evening soon takes a terrifying turn.

Elena seeks answers from Stefan about all the bad things happening in Mystic Falls. Stefan reveals how the rivalry with his brother began through a series of flashbacks. Damon controls Vicki’s future. Meanwhile, Sheriff Forbes and Mayor Lockwood try to protect their town.

Stefan reveals part of his past to Elena, who later hears a disturbing story about the Salvatore family from a stranger. Meanwhile, Bonnie seeks advice from her grandmother (Jasmine Guy) about psychic abilities she possesses.

Elena and Stefan go to the town’s annual Founder’s Party. Vicki wants Tyler to take her to the party. Damon tells Elena about the history of the Salvatore’s. Stefan tries to cut Damon out of his life.

Stefan joins the football team after an impressive athletic display. Elsewhere, Elena invites Stefan and Bonnie to dinner in hopes that they will bond, but Damon disrupts the evening with an unexpected visit; an act of violence shocks the town.