Holly drops Tim and Cyril off at Bardsey. The two boys have decided to have a detente, where they pretend to get along for the sake of the parents. Tim has successfully scared Cyril off of making life hard for Tim at school, partly by making Cyril the new target for the school bullies. Meanwhile, Tim takes off to learn more about his Other, and the worlds he created, with Thomas Currie, letting Cyril have the run of the school. Tim now hopes to regain his magic so he can use it to battle the Other.
Molly, who has not been seen for a long time, shows up at home; she had been staying with her Gran. Tanger, Crimple, and many of the other creatures Tim made as a child are now living in her room, and they want her to protect them from Tim. After Tim destroyed the army men figures, they're all worried he destroy them too.
Awn the Blink made them all a hiding place in the cellar, behind the walls.
Meanwhile, the Other has arrived, and he starts to torture a gargoyle, who, like the ones in California, is a secret-keeper. He specifically asks about Molly.
The next day at Molly's, her brothers try to find a good spot to hide Happy. The Other shows up, and they all assume it's the true Tim. He beats up the brothers, and she comes out. He acts brash, and she is annoyed. He wants to force her to go for ice cream. She fights back. He thinks she's the best Molly.
Happy smacks him down. Molly asks if he's been talking to demons, since that's specifically what she made the true Tim promise not to do. He says of course, so she says she never wants to see him again, still thinking he's the real Tim. The Other is left outside, and can't do anything to Happy or Tim will know.
Molly tells Tim's creatures they can all stay with her, and writes Tim a letter, saying that they are over forever, and explains exactly how he will sell a soul to a demon and become the evil Future Tim, aka Sir Timothy.
As the Other leaves, surprised to find Happy since the gargoyle told him that Tim had given up his magic, he runs into In-the-No, who wants to help him get rid of Tim.
Unfortunately, Holly, Bill, and Cyril are driving by their old house right as the Other walks away from Molly's. They're so surprised to see "Tim" there that Holly runs the car off the road, creating a terrible accident.