Team Lisbon shows up at crime scene in which a fireman has had his throat slit the night before his coworker's bachelor party. Another firefighter who witnessed the crime tells Jane that he saw the masked killer run into the woods, so Jane goes in to poke around for a murder weapon. While searching near a pond, someone pulls him into the water and attempts to drown him.
Lisbon finds him and paramedics manage to resuscitate him. He wakes up later in the hospital wondering if he and Lisbon are sleeping together and he has reverted back to his con man personality. He offers to help Lisbon conjure her dead mother. Lisbon suggests he come work for her at the CBI and he agrees.
But now the CBI team has to keep a sharp eye on Jane. Rigsby takes him to question the firefighters and Jane ferrets out that the victim was not well-liked by his fellow firefighters and one of them was sleeping with his wife. But since Van Pelt learns from the widow that the victim was okay with the affair, it rules out foul play from her and her lover.
Then Cho and Jane pay a visit to a man the victim saved when his house burned down. He seems suspicious and has a bunch of newspapers laying around, one if which displays the story of a masked bank robber.
Jane starts to get antsy and doesn't want to play cop anymore. He takes the fire department out for drinks and holds court, trying to impress everyone with his psychic abilities. After he grabs Lisbon's ass, she decides she needs to get him back in treatment. At the hospital, Jane says he'll at least finish the case and says he wants to set a trap for the killer.
He meets with Tom, the guy whose house burned down, and finds him packing up to leave town in a hurry. He says he knows that he killed the guard in the bank robbery and tried to cover up evidence by burning down his house. When the fireman saved him, he saw the mask, and so Tom had to kill him too. Jane says he'll keep quiet if Tom gives him half the money he stole.
Later, Jane shows up at CBI offices with a woman and a lot of bling. Realizing he kept the money, Lisbon decides the only way to reform Jane is to make him remember how his wife and daughter died. She takes him back to his house and replays the incident for him. The horror of it brings Jane back to normal.