Sam and Dean arrive at a diner to get supper and when Sam goes in, the radio malfunctions. Dean notices that Sam has disappeared from inside the diner and goes in to find several corpses but no sign of Sam. He notices sulfur and realizes demons are involved.
Sam wakes up in an abandoned ghost town and runs into Andy, and neither one of them know what's going on. They hear a woman screaming and go to investigate and find Ava, who thinks it's been only two days since she last saw Sam and Dean, when it was actually five months ago. They find two other people, Jake and Lily, and determine they're all age 23 and have psychic powers, and Sam tries to explain a demon brought them together.
Dean meets with Bobby who reports there hasn't been any demonic signs or omens. They call Ash who says he has something big and wants them there, and they head out.
The other "children" are skeptical about Sam's story and Jake stalks off. He spots a face in a window of a house. He goes in to investigate and finds a chalkboard with "I will not kill" written on it. A demon-girl comes at him and Sam arrives and drives it off. Sam realizes they're in the haunted town of Cold Oak, South Dakota and tries to calm them down. Lily decides to secretly go off on her own.
Dean and Bobby arrive at the road house only to find it burnt to the ground, Ellen missing, and Ash dead. Meanwhile, something is stalking Lily through the woods, while Sam and the others realize she's missing. They go outside and find Lily dead, hanging from a windmill. Andy tries to use his powers long-distance to send images to Dean of the town, as well as a picture of Sam. Bobby figures out the location of the town from the landmarks Andy projected.
Sam is working with Jake to create some tools, then helps Ava fortify a building with lines of salt. He finally tells her that the demon that took Ava killed her fiancé Brady. She collapses sobbing. Later they take refuge together but the yellow-eyed demon appears to Sam and says he's rooting for Sam, and that they're all in a competition. The demon has set up much of Sam's life to get him out on the road and trained, although the death of his mother wasn't intentional. It shows him a vision of how it fed its blood to Sam as a baby. Sam's mother came in and recognized the demon and it killed her. Sam wakes up to find out Ava's missing. They go out to search but Ava comes back to confront Andy after breaking the salt line. The demon-girl comes in and kills him as Ava looks on.
Ava screams and Sam and Jake arrive to find her standing over the body. She gives them a cover story but Sam wonders who broke the salt line. He quickly figures out she's responsible and she confesses what she's been doing and that she's been killing the other children as they arrived over the last five months. Worse, she's developed her powers further and can summon demons, and calls the demon back, but Jake arrives to break her neck. But he tells Sam the demon appeared to him and he has no choice but to kill Sam so he can get close to the demon and kill it. Jake comes after Sam who manages to defeat him and prepares to kill him. Bu Sam can't bring himself to do it. Bobby and Dean arrive just as Jake stabs Sam and runs off. Sam dies in Dean's arms.