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Recalling what Cole told him about dead people only seeing what they want to see, Malcolm locates his gunshot injury, and he realizes that he did not survive being shot by Vincent.

Malcolm returns home to find his wedding video playing and Anna talking in her sleep, asking Malcolm why he left her. Suddenly, she drops his wedding ring and he notices that it is not on his finger.

The tape reveals Kyra's stepmother poisoning her food, alerting her father to the reality of her death and saving her younger sister from the same fate.

One night, Cole finds Kyra Collins, a female child ghost, vomiting. He figures out who she is, and goes with Malcolm to the funeral reception at her home. In her room, Kyra gives Cole a videotape that he hands to her father.

He realizes that Cole is telling the truth and suggests that he try to communicate with the ghosts, and help them finish their business with the living.

Malcolm thinks Cole is schizophrenic and considers dropping his case. However, after listening to an audiotape from a session with Vincent, he hears a man begging for help in Spanish when Vincent was supposed to be alone in the room, suggesting that Vincent had the same ability.

Once released, he faints and appears to have been physically assaulted, which his mother attributes to the bullies. Following this, Cole finally confides to Malcolm that he sees dead people who walk around like the living do, unaware that they are dead.

Cole's mother Lynn worries about him, especially after seeing mysterious signs of physical harm. At a birthday party, when bullies see that Cole is terribly scared of a cupboard, they lock him in it, causing him to scream in terror about someone seemingly inside with him.

Months later, Malcolm has begun working with Cole Sear, a nine-year-old boy who reminds him of Vincent. He feels he must help Cole in order to rectify his own failure to help Vincent and to reconcile with Anna, who has become distant and cold and is suffering from depression.