Melinda and Andrea are in the basement of the inn, also an old orphanage and Melinda is trying to get Andrea to host the auction they are going to have for their antique shop. They would be selling things from the hotel. Noises start to be coming out of nowhere, it is the ghosts of three little boys and a dog. Melinda says "I know you're there". Ghost boys says "This is our stuff, leave it be" and they break a glass object.
Melinda and Andrea talk to Mr. Abrams, the former owner of the inn and he says that it used to be an orphanage, but then there was a fire.
Melinda meets the ghosts again and the two younger ghosts take her to their leader, Rat. They are very mad about her selling stuff from the inn, they say it is theirs. Rat says "and what makes you think you can just walk out of here with our stuff?" Melinda and Rat talk for a while, and one of the kids, Vick, finds out he's dead. At the end of the scene after Melinda says "Do I really need to call him Rat?", Rat breaks the window behind him.
It switches to Melinda and Andrea hauling boxes out from the hotel, and Andrea asks about how ghosts can break things. After Melinda tells her, Andrea replies "Another fun fact from Melinda". A car pulls up and Melinda meets the new owner of the inn. He claims he is going to tear it down.
Melinda talks to one of the ghosts, Vick. He's the one who didn't fully know he was dead.
Melinda is now at home, and Jim is talking about having a friend of his, Lou, to stay with them while he helps fix the furnace. Melinda is a little mad at him and decides to stay the night at the inn. Lou pulls up into the driveway and ran over Melinda's favorite plant.
Now Melinda is at the Inn. She runs into Mr. Abrams. She and him talk for a while, and Mr. Abrams claims that he thinks there are ghosts at the Inn. He even asks her if she believes in ghosts, she replies, after a moment of though, that she does. Melinda heads upstairs and meets the two younger boys. They have her read them a book, Peter Pan. One of them lights the candles so she can see. Melinda claims they are "very talented".
The next day Melinda is at the store with Andrea. Melinda decides to start a Grandview Historical Society, and tries to get Andrea to be vice-president. She says no. Now Melinda is trying to get the new owner to postpone the demolition of the Inn, which is what he is planning to do. When she gets home, she is startled by Lou who is wearing her face mask thing, and she begs Jim to take him out for the night so she can have some peace. He agrees. That night she researches the orphanage and finds out that there were four boys who died in the fire, not three. Rat, Vick, Marty and a fourth one, Ernie. Jim, Lou and two other friends arrive back home, bursting through the door and a little drunk. Melinda decides to go back to the Inn. Melinda says "I figured it out, it's not about me not liking Lou, it's about me not liking how you are around Lou". She walks out with a startled expression on Jim's face.
At the Inn she talks to Mr. Abrams again. He tells her about the fire. Apparently Ernie and Rat were best friends, you would have expected them to be together when the found their bodies, but they never found Ernie's. The two younger ones were holding hands when they died, the dog, Homer, right there next to them. Rat interrupts and breaks a glass, he doesn't like what Mr. Abrams is saying. Later that night Jim comes to the Inn looking for Melinda because she'd been there so long. He finds her there reading to the boys again, and Jim decides to stay the night with her at the Inn. The next morning they awake to the sound of construction workers, they were preparing for the demolition. Jim gets a call from Lou, an electrical problem. As he gets ready to head home, he has trouble getting on his shoes.
Rat confronts Melinda and he tells her the "real" story of what happened that night. It flashes back to that night. Rat was leading all the boys out of the orphanage but the four got separated from the rest. Then Ernie got separated from them. They get to the door but it is locked and they couldn't find their way out in time. "I never saw Ernie again" Rat blames himself. "They trusted me, I let them down". Melinda says "That's not true. They still love you, don't they?", Rat says "most of the time they do" and Melinda replies "That's because they're family, Rat. They're the lost boys and you're Peter". That is where they get the title. The ghosts are the Lost Boys. Then Melinda and Rat continue talking.
Melinda convinces Vick and Marty to come outside with her, they have never left the Inn because of fear their feet would burn. Melinda drives them around town and they are in awe since they died fifty years ago and haven't seen any of the newer technology or anything. Vick wants Melinda to be their mother and she tries to convince them to go into the light, but they won't unless Rat does.
It is now the auction. While there, she sees the new owner of the Inn looking at a chest with the words Ernie inscribed on the inside. She accuses him of being Ernie. He denies it but she knows it's true. She then takes him inside the Inn and takes him to where the boys are. He tells her his version of what happened the night of the fire. It's the same as Rats except he was able to get out the side door and run away. He wants to tear down the Inn so he can erase the memories. She then has him talk to the boys, although he doesn't really believe. Rat says "Tell him, it's still there. Where he hid it." When he hears that he says "They really are here". Melinda starts translating what the boys are saying "Vick wants you to know Homer's here, Rat says you're old, and Marty says your teeth are fixed" After a long talk between them all, with Melinda translating, the three boys cross over. Rat sees his brother in the light, who died when they were little.
At home that night Melinda and Jim are in their room when they hear a noise. "thump, thump, thump". They go outside their door to see a ball rolling down the stairs then floating back up. It is Homer, the ghost dog, but of course only Melinda can see it. Jim says "Um, you want to explain that?" and Melinda replies "Tomorrow, let's just go back to bed". They head back into the room, an odd look on Jim's face, and the episode ends.





