Maple Springs, New York
At a new housing project, three workers, overweight brothers, are discussing why the wood is warped on a house they're building when they hear something but dismiss it as the wind. One of them, Kyle, goes to investigate and finds nothing, but then sees one of his brothers, Jack, hauled away. He takes cover as his second friend is brutally killed as well. Finally he takes a look around and the same creature kills him.
Dean and Sam are driving along, scaring a frog off the road. Sam wants to summon the Crossroads Demon and used the restored Colt against it. Dean refuses to hear about it, insisting he's the oldest and he has the final word. They then discuss the newest reports of a killer, which they suspect is a werewolf. They talk to Kyle, who survived the attack, but he says the killer was human and simply let him go. He does say the killer had a tattoo of Wile E. Coyote on his arm. Kyle's doctor, Garrison, comes in and Dean talks to him. He reveals that the other two brothers were DOA and chunks of their organs were missing: not an indicator of werewolf behavior. They consider the possibility of a demon attack but can't explain why it would have stopped.
In the woods, a couple is lost until they find an old house. An old woman comes out and the wife is suspicious, but the husband, Ken Watson, insists they should go in. She gives them pie but afterward they collapse in agony. As they pass out, the old woman picks up a knife and cheerfully stabs Ken to death, while a young brunette girl watches from outside.
Dean and Sam go to the hospital to talk to the woman, who Dr. Garrison is tending to. Mrs. Watson says she managed to shove the old woman into a stove, hitting her head and knocking herself out. She also mentions the little girl and wondered if they found her, and gives them a description. They check the house and find EMF readings by the window where the girl was. Sam thinks the two cases involve first the Three Little Pigs, then Hansel & Gretel. Sam notes that the tales of the Brothers Grimm were originally much more violent and then sanitized. They head out to do research and Dean doesn't find any missing girls, but Sam talks about a British medium who was possessed by ghosts. He suspects that the girl is possessed by spirits and recreating the fairy tales. Sam spots a pumpkin on a nearby porch and wonders if it relates to Cinderella. They go into the house and find a woman handcuffed to the stove. She says that her stepmom attacked her, and Dean spots the girl. He follows her through the house until she flickers and disappears, leaving an apple behind.
Sam figures the apple is poisoned to put someone into a coma and they go to the hospital. The only young girl in a coma is Dr. Garrison's daughter Callie. Garrison is reading fairy tales to his daughter, including the story of Red Riding Hood. In a parking lot, a man with a tattoo on his arm helps an old woman with her groceries… then savagely attacks her and drives away in her van.
Dean and Sam find Garrison reading to his teenaged comatose daughter, who looks like an older version of the girl that Dean saw. Garrison explains that she swallowed bleach when she was 8 and his wife, Callie's stepmother Julie, found her and brought her to the hospital. They figure Julie deliberately poisoned Callie so she could get attention. Callie's spirit has got angry and, influenced by the fairy tales, finally lashed out. EMTs arrive with the dead woman, who was mauled as if by a wolf. The woman had a granddaughter and Dean goes to her house while Sam tries to stop Callie.
At the granddaughter's school, she spots her grandmother's van and gets in… to find the man waiting for her. He locks the doors and drives away with her.
Sam talks to Dr. Garrison and tries to explain, but Garrison doesn't want to hear it. Sam insists on explaining and Garrison admits that he's seen Callie's eight-year-old spirit. He doesn't believe Julie killed his daughter but Sam insists he has to listen to Callie. Meanwhile, Dean has tracked the granddaughter to her house but the wolf-man attacks her while Callie's spirit looks on. Dean grabs a pair of scissors and defends himself, while Garrison tries to get through to his daughter and find out what Julie did to her. Callie's younger spirit appears in the room and Garrison apologizes and asks her to stop hurting people. He lets her go and her body flatlines, while at the house the possessed wolf-man is restored to normal.
Garrison says goodbye to Sam and Dean and Sam wonders if Dean want him to let him go as well. That night, Sam sneaks out of the motel and goes to a crossroads, and performs the ritual to summon the demon. He points the Colt and demands that she release Dean from his deal. The demon isn't convinced by his threats and wonders if he really wants to break the deal. Sam angrily tells her to shut up and she explains that her boss is the one who holds the contract. He won't release Dean no matter what. Sam considers the matter… then shoots her down.