After Matthew's screams of terror, Burke and Roger break into the old house rescuing Victoria. They find Matthew dead from fright. Elizabeth, calls the Sheriff. Victoria comes home and states that the ghost of Josette Collins saved her. Roger thinks she is traumatized and imagined the ghost. Roger takes Sheriff Patterson to the Old House. Elizabeth orders Burke not to hurt Carolyn or Victoria, whom she suspects he is attracted to. Burke visits Victoria in her room and she thanks him. Burke tells her to flee Collinwood; she believes she's safe now that Matthew's dead. Roger comes home and tells the news that there will probably be no inquest. Matthew died of a heart attack most likely brought about by a big fright. Victoria feels Josette watched over her the whole time and she believes she resembles Josette. She thinks Josette is one of her ancestors. Meanwhile, Josette's ghost appears outside the Old House and dances around the columns.

Sam reveals to Roger that the stranger who spoke to Maggie was Roger's estranged wife Laura, who has returned to town. Elsewhere, Laura wastes no time in making her presence felt.

Elizabeth learns of Laura's return and decides that she must not see David. Meanwhile, Sam finds himself compelled to paint a disturbing picture of a woman burning amidst flames.

Laura visits Collinwood and reveals to Roger and Elizabeth that she has intends to gain legal custody of David. Meanwhile, David has a nightmare about his mother.

David learns the news that his mother has returned to Collinwood. Clearly disturbed by this revelation, he confides to Victoria that he senses Laura's presence watching over him.

Burke and Laura meet and discuss their respective agendas against the residents of Collinwood. Meanwhile, Sam finds himself compelled to continue working on the painting.

A frosty meeting between Roger and Laura takes place when she visits Collinwood. David is apprehensive about meeting his mother, following his dreams. When the pair meet, he runs away terrified.

Elizabeth struggles to comfort David, who hears his mother calling to him in his sleep. While attempts are made to reintroduce the boy to his mother, it is agreed that Laura will live in Matthew's empty cottage.

Roger locks horns with Richard Garner, as he attempts to speed up divorce proceedings against Laura. Sam continues to be troubled by his compulsion to paint the fire portrait.

Sam's painting is now almost complete, depicting Laura surrounded by flames. Meanwhile, Roger learns that the body from the Phoenix apartment has been positively identified as Laura.

The sheriff questions Laura about the body, but can offer no explanation for the mistake in identity. Roger goes to Laura's cottage with a gun and discovers her and Burke there together.

Roger demands that Laura tell him what Burke wanted from her. David does not want to meet Laura. When she encounters him by chance at Widows' Hill, he is terrified and almost steps over the edge.

Victoria makes an effort to reunite David and Laura, in spite of him not believing that Laura is his mother. Later, Laura tells David the story of a mythical bird, the phoenix which is reborn anew through fire.

David shows Laura a picture he has drawn of the phoenix and shows her the Old House. Meanwhile, Laura begins to reveal a darker motivation behind her return and her plans to take David far away.

Victoria receives the mysterious painting of Laura from Sam and passes it onto David. That night, the painting gives David a terrible nightmare vision of his mother calling to him.

Sam is alarmed to learn of the influence his painting has had on David, but finds himself unable to stop working on a second, identical painting. Lieutenant Riley investigates the fire at Laura's apartment.

Victoria looks through the Collins family album and is intrigued when she realises that its illustration of Josette features an identical locket to the one Laura wears. Riley's continues to search for answers.

Laura is outraged when she learns of Sam's painting. Later, as Sam sleeps in the living room of his cottage, Laura stares into her fireplace and makes a fire erupt around him.

Sam and Maggie put the fire out, leaving the cottage barely damaged. Sam is left with badly burned hands, preventing him from painting. The second painting of Laura has been destroyed by the fire.

Laura asks for Burke's help to reclaim David. Burke warms to her proposal, but in return asks for her to help clear him of his manslaughter conviction. David refuses to left Roger take the painting away.

Victoria and Frank continue to be concerned by Laura's influence on David and agree that, despite Burke's advice, that the boy should be kept away from her at all costs.

The ghost of Josette materialises in David's room and magically completes David's painting, so that it now depicts him and his mother surrounded by a wall of flames.

Roger is appalled by the painting and throws it into the fireplace. Meanwhile, Elizabeth tells Laura to stay away from David. Laura vows that she will regain her son.

David reveals to Elizabeth that Laura has visited him in the night. Meanwhile, Roger decides to encourage David to forge a closer relationship with his mother.

Laura uses her powers of persuasion to make Victoria agree to stand aside from her and David. The body from Phoenix is positively identified as that of Laura Collins.