Five years ago, Yao Fei goes hunting with Oliver and orders him to recover the animal that he kills. Oliver wants to shoot instead and Yao Fei offers him the bow. As Oliver aims at a tree, Yao Fei tells him to breathe but Oliver still misses. When Oliver goes to get the arrow, three hooded men grab him and haul him to a tiger pit in the forest.
Now, Oliver is taken to the police station and booked as the Arrow vigilante. Quentin interrogates him and Oliver insists that he's not the vigilante. Quentin informs the prisoner that he has security footage from the sniper shooting showing Oliver recovering a hood from a garbage can. However, Oliver tells the detective that he hid in the stairwell, found the duffel, and figured that it belonged to the shooter. Quentin points out that Oliver doesn't have the costume and points out that Adam Hunt was harassed in his office across the street from Oliver's welcome-back party. Moira and Walter come in and inform Quentin that he won't be speaking with Oliver until he has legal representation. Quentin reluctantly leaves but warns them that he has the evidence that he needs to bring Oliver down.
Once they're alone, Oliver tells Moira and Walter that Quentin is on a vendetta because Olive got his daughter Sarah killed. He then asks Moira and Walter that the only lawyer he will accept is Laurel, who knows he couldn't be a vigilante. Oliver also believes that Laurel is the only person who could convince Quentin to move beyond his vendetta.
Moira has no choice but to go to the CNRI legal aid office. She meets with Laurel and asks her to represent Oliver in court. Laurel refuses, saying that it's not a good idea to defend someone that she was involved with. Moira says that she appreciates Laurel's idealism and that it was part of why Oliver wanted her as a lawyer, and leaves.
In the courtroom for his bail hearing, Oliver insists on representing himself and assures Judge Moss that he's innocent. The DA, Kate Spencer, moves that bail be refused. Laurel comes in and objects, and suggests that Oliver be tagged with a GPS bracelet and confined to his home. As Oliver starts to object, the judge agrees and assigns bail. As the spectators leave the courtroom, Oliver thanks Laurel for coming to his help and she says that they both know he couldn't be the vigilante because the vigilante is trying to make a difference and that isn't Oliver's
Back at the manor, an officer attaches the bracelet to Oliver's ankle. Oliver has decided to throw a prison-themed rave on the estate grounds in celebration of his coming freedom. Tommy warns that it's not a good idea but Oliver wants to make it clear that everyone knows that he isn't worried.
At home, Quentin confronts Laurel about her new client. He insists that Oliver got Sarah killed but Laurel points out that he's biased and that he's letting that guide his prosecution of Oliver. Her father doesn't believe it, insisting that the evidence is solid, but Laurel tells him that Olive wasn't the one who killed Sarah... or drove off Quentin's wife. As Quentin storms out, Laurel tells him that he's not the only one who misses them.
Diggle visits Oliver in his room and asks what he's up to. Oliver says that he knew the security camera was in the stairwell and figured that someone would eventually review the footage. He set the whole thing up so that he could divert suspicion from himself, since someone would eventually tie the appearance of the vigilante to Oliver's return to civilization. Diggle points out that Oliver is putting his family through hell but Oliver insists that the mission comes first. He shows Diggle an Internet article on Leo Mueller, a German arms dealer who has stolen military weapons and is bringing them to Starling City to sell to street gangs. Diggle wonders how Oliver plans to go after Mueller when he's under house arrest, and Oliver asks him to just shadow Mueller for the time being. He sends Diggle to the hideout where the bodyguard gets some transponders from Oliver's collection of high-tech equipment.
Walter meets with Josiah Hudson, the head of Queen Consolidated's security, and tells him off the record that he has an assignment for him. He explains that he found the remains of Robert's yacht and wants Josiah to move them to a secure location. When Josiah wonders what's going on, Walter admits that he doesn't know yet.
The DA calls for a meeting with Laurel and her client and brings in Quentin. Kate explains that Quentin bypassed her office when he arrested Oliver and that she's willing to let Oliver make an insanity plea. Oliver refuses, insisting that he's sane, and says that he'll undergo a polygraph test. It isn't admissible in court, but he'll do it in front of Quentin to convince the detective that he's innocent. Laurel talks to him privately and says that he should take the Kate's deal. All Oliver will agree to is to accept the deal if he fails the polygraph test. Laurel is satisfied for the moment but warns him that he's not the only one with something to lose.
The three men take Oliver to a camp where ore of their kind are loading crates. They take him to a tent and leave him, and the camp leader, Edward Fyers, introduces himself. Oliver introduces himself and says that his family will pay a reward for his return. However, Fyers says that they'll get to that and shows him a photograph of Yao Fei in a military uniform. He asks Oliver if he's seen the man and Oliver claims that he hasn't. Fyers isn't convinced and says that Oliver should think on how he's going to suffer as he calls in his personal tortured, a man in a black and orange hood.
As the workers set up for the party, Oliver comes out to chat with his sister. He tells Thea that everything will be okay but she points out that he's been acting weird ever since he came back. She reminds him of the arrowhead that he gave her but Oliver says that it's just a coincidence and that he bought it at an airport gift shop. Reassured, Thea says that she knew Oliver couldn't be a killer and worried that she'll lose him again. Oliver promises that she won't.
Moira goes to see the well-dressed man when he summons her. She tells him that the charges against Oliver are false but he wonders if there is something that Oliver has to hide and warns her that they need to know if her son is hiding something.
Oliver and Laurel meet with Quentin and the polygraph technician. After calibrating the machine on Oliver's truthful answers, Quentin first asks Oliver if he was at the prison and then if he's the hooded vigilante.
Fryers demands to know if Oliver has seen Yao Fei as his torturer waits patiently.
Oliver says that he's never been to the prison and that he's not the Arrow vigilante. The polygraph technician confirms that he's telling the truth and Quentin starts to ask Oliver about the island.
When Oliver doesn't answer, the torturer cuts his chest.[/i]
Quentin asks Oliver if he was alone on the island and Oliver admits that he wasn't. He explains that people were there and tortured him, and he didn't want to talk about it. When Quentin asks Oliver if he's killed anyone, Oliver says that he killed Sarah by inviting her onto his father's yacht. Rattled, Oliver takes off the leads and walks out. The technician tells Quentin that Oliver told the truth and Laurel asks if her father will be releasing him. Quentin refuses, saying that he can tell that Oliver is guilty of something whether Laurel will admit it or not.
That night, Oliver throws his party and greets the guests, inviting them to make as much noise as they want. Quentin watches from the crowd as Oliver goes inside and meets privately with Diggle. Diggle has Mueller's current location from the transponders and Oliver says that the Arrow vigilante will stop him... but no Oliver. Diggle realizes that Oliver set the whole thing up so that he'd have a perfect alibi while Diggle dons the costume and goes after Mueller. Oliver admits that he wasn't expecting Diggle to have to stop an arms deal and the bodyguard says that he's okay with the risk. What he doesn't like is Oliver lying to him, and Oliver apologies. Diggle tells him that he'll stop the deal.
Mike Vogel in in security calls Walter and tells him that Josiah was killed in a car accident.
Laurel comes to the party and asks to see Oliver privately. He takes her to his bedroom and she apologizes for her father's behavior. Oliver says that he understand why Quentin is angry and that the detective has every right. Laurel interrupts, telling Oliver that after Sarah died, Quentin threw himself into his work and drove his wife away. Since then, Laurel has been so focused on her family that she didn't realize what Oliver went through. She asks to see his scars and Oliver opens his chest to reveal them. He tells her that there were times when he wanted to die but that the fact that he wanted something more kept him alive. They start to kiss but then Laurel pulls away and runs out.
When Oliver says nothing about Yao Fei, Fyers wonders if Oliver was telling the truth. He tells the torturer to kill his prisoner, but Yao Fei breaks in and knocks Fyers and the guard out. The torturer is a tougher opponent, catching an arrow in mid-flight, and the two men fight it out. Yao Fei finally gets the upper hand and takes Oliver out.
As Mueller cuts a deal with a street gang for his weapons, the lights in the warehouse go out. As Mueller and his men drive away with the weapons, Diggle takes on the gang members and knocks them out.
Walter summarily calls Moira to his office and tells her that he knows Moira recovered her first husband's yacht and had it shipped to Starling City. He tells her that Josiah was killed while moving it to a more secure location and accuses Moira of lying to him. She warns her husband that he's on a dangerous path and that the people behind it will stop at nothing.
Diggle calls to tell Oliver that he's disposed of the gang but Mueller escape. A waiter knocks at the door, reminding Oliver that he has to be at the party. When Oliver comes out, he realizes that the waiter has a gun and is going to kill him. They struggle and Quentin arrives just in time to shoot the killer dead. The detective takes Oliver downstairs to meet with Moira and Walter. Moira, realizing the killer works for the well-dressed man, makes the best of the situation by suggesting that Quentin accusing Oliver of being the Arrow vigilante made him a target for criminals. Quentin gets a call from the station and removes the GPS bracelet from Oliver's ankle. He explains that multiple witnesses placed the Arrow vigilante across town busting up a street gang and he's been told that all charges Oliver have been dropped. As he leaves, Oliver thanks him for saving his life.
The next day, Moira bursts into the well-dressed man's office and demands to know why he's targeting her son. He says that he had to take steps to dispose of Oliver if he was their enemy as Quentin claimed. The well-dressed man apologizes, assuring Moira that it's clear her son isn't the person who is after them. He does admit that he had Josiah killed to protect their secrets. Moira warns him that while she'll do whatever he asks, she'll destroy him if he touches her family.
At the manor, Oliver finds a pouch that he dropped on the bedroom floor.
Yao Fei takes Oliver back to the cave and admits that he's impressed that Oliver didn't break under torture. He reminds him to breathe, gives him the pouch, and runs out. When Oliver tries to follow him, Yao Fei sets off a deadfall, sealing the cave mouth./
Laurel comes to see Oliver and tells him that she studied the polygraph results. She realized that Oliver lied when he said that he hadn't been to the prison, because they visited it together on a field trip in the eighth grade. She figures that he might have forgot until she looked at the readings and realized there were several suspicious flutters. Laurel wonders what else he lied about and Oliver says that he doesn't like to talk about what happened on the island because people would consider him damaged. He claims that since returning he can't sleep, barely eats, and can't sign his name much less use a bow and arrow. After a moment, Laurel says that they're clearly attracted to each other but that nothing can happen to them. Oliver agrees and Laurel gives him the polygraph results as she leaves.
Later, Oliver and Diggle go to the hideout and Oliver defends his decision to keep Laurel in the dark. Diggle doesn't believe it, figuring that things didn't happen the way Oliver planned and that those close to him are questioning his answers.
Walter packs up and leaves the manor. As he goes, he tells Moira that he's taking a long business trip to Melbourne and doesn't know how long he'll be gone.
Diggle asks if Oliver has considered how his plan would affect his friends and family.
Laurel tracks down Quentin, drinking in a bar, and takes him home.
Oliver says that he's all too aware of the effects of his lying and explains that it hurts him worse than anyone else. He then dons his uniform, tracks down Mueller, and breaks up his second attempt to sell the arms. After taking out Mueller's men, Arrow tells the arms that he had a chance and blew it, and that Mueller failed the city.