Piper is preparing for Wyatt's third birthday when an Elder arrives to reassure of her deal that Leo will be restored when they defeat the great evil they're up against. The Elder tries to reassure Piper about Wyatt acting up and gets a pie in the face for his efforts.
Billie is torturing a possessor demon, Rohtul, up in the attic for information on the symbol from her sister's diary but not getting anywhere. Piper bursts in and isn't happy with the possible interruption to the party – the demon escapes during their discussion. Billie takes off while Phoebe tries to reassure Piper then volunteers to talk to Wyatt. Rohtul reports back to the demons at the Magic School and one of the demons knows who is responsible – a demon as dangerous as the Charmed Ones. They vow to destroy Billie and Rohtul coordinates an attack plan.
Billie goes to a bank where Paige is helping Henry to get Nick Edwards, one of Henry's parolees, a loan. The bank officer goes off to run a security check and Billie pulls Paige off. Wyatt is playing with his Indian Chief, Cowboy, and Soldier toys as Phoebe tries to talk to him about his missing dad but doesn't get much response. Phoebe casts a spell on his bear, causing it to talk about Wyatt's feelings. In response Wyatt animates his three toys into life-sized living creatures, while down below the party guests arrive. At the bank, Nick gets rejected for a loan and barges out in a rage, then drives his car through the front window and takes everyone hostage to get his loan.
Phoebe comes down to the party and tries to get it over, and Piper quickly realizes something is wrong as the three animated toys barge in. the Cowboy and Indian Chief are feuding and Phoebe manages to cover, passing them off as entertainers. At the bank, the tracker demon working for Rohtul shows up as Nick secures the bank. Paige and Billie can't use their magic due to the bank cameras and Henry suggests the only one who might be able to calm him down is Nick's son. Paige asks to go to the bathroom and Nick lets her, and then she orbs out. The party is going surprisingly well despite Piper's concerns, then Paige calls them off to give them a briefing before heading back.
Paige gets back just in time and suggests Billie whip up a potion out of stuff lying on the floor. The negotiator, Lt. Sanchez, calls in to talk to Nick, and then Homeland Security calls in to tell Sanchez to give Nick what he wants. Henry realizes something is up while Phoebe and Piper watch the TV broadcast. They head out and find the toy-figures interrogating people about Leo's absence and overreacting to a balloon popping.
Henry tries to appeal to Nick through his son and is starting to get through when one of the hostages goes for a gun and fires. Henry pulls Nick out of the way and Paige disarms the hostage, who says he's a cop. Nick starts to panic while Paige attends to Henry, who was hit in the stomach by the bullet.
The tracker demon reports back to his brethren, who realize neither they nor the Charmed Ones can use their powers for fear of public revelation. Rohtul plans to force their hand to save innocents. Piper show up with Nick's son Justin. Paige insists that Nick have Henry sent out for medical treatment and he should have been shot. Phoebe is trying to run herd on the animated toys who are in the attic looking for Leo, and realizes they are Wyatt. Nick talks with his son and considers surrendering when he is possessed by Rohtul and announces who the Charmed Ones really are. He taunts them with the fact they will have to use their powers to save Henry. Paige tells Billie to finish the potion while the possessed Nick tells Sanchez he wants more time. Piper overhears and realizes what is going on – she sees Paige covertly signaling on a video camera and gets the message.
Phoebe is ushering the guests out and everything has gone well. Piper gets back to get Phoebe to help and they leave Wyatt with his "friends." Rohtul taunts Paige with her guilt if he dies and this triggers her ability to heal him on her own. Nobody sees her and while Rohtul is in denial and prepares to shoot Henry, Billie tosses down a potion/smoke bomb but seemingly nothing happens. Rohtul takes Billie as a hostage and charges out into the street and heads for the helicopter and takes off.
As the police tend to the hostages, Paige tells Henry that Billie and "Henry" disappeared, then hustles off and tells Piper and Phoebe things are going according to plan. Rohtul takes Billie to the Magic School where the demons attack her, but "Billie" reverses their energy balls and destroys them, then orbs out with "Henry" and brings him to the attic where they have a possessor-demon containment spell ready. They reveal that Paige and Billie switched places and forms during the bomb, then Billie banishes Rohtul. Billie apologizes for overreacting by attacking demons. Billie questions Paige on her healing Henry and they realize something extreme must have happened to let her heal him on her own.
Later Piper reassures Wyatt that Leo is doing something very important and it isn't his fault or anyone else's. The animated toys revert to normal W