Ruby, Pablo and Kelly arrive at the asylum that Ash is being held at. Baal has kidnapped Lacey, and uses her to get Linda to convince Ash of his delusions.
Baal decides not to honor his deal to release Lacey, which prompts Linda to storm of in search of her. Ruby, Kelly and Pablo run into Sheriff Thomas a hallway, who is also searching for Lacey.
Suddenly, Lacey calls out and emerges from the shadows. Lacey turns into a Deadite, attacks Pablo, kills a security guard, and runs off. Thomas gives chase.
Thomas finds Lacey again, back in her human form. Kelly finds them and warns Thomas that Lacey is not his daughter anymore. Thomas ignores Kelly's plea and consoles his daughter. Lacey turns back into a Deadite and decapitates Thomas, and fleas again as Kelly pursues her
Lacey surprises Kelly and after a brief scuffle, Kelly gains the upper hand and blows Lacey's head off.
Kelly later finds Ashy Slashy and a fight ensues. Kelly then blows the puppets brains out. Linda then finds Kelly and asks if she has seen Lacey, but Kelly doesn't tell her the truth.
Under the control of Baal, Ash finds and chases Ruby and Pablo throughout the Asylum. They seek refuge in a closet as Ruby tells Pablo that even if their plan to send Baal back to hell goes well, there's a great chance that Pablo won't survive.
Ash captures Pablo when he leaves the closet, thinking the coast is clear.
Kelly and Linda hear Pablo's cries for help and find him chained up and hung from the ceiling. They attempt to free him, but Ash appears along with Baal in the form of Dr. Peacock.
Baal tells Ash to kill Pablo and end his "delusions". As Ash is about to deliver the killing stroke, he cuts the chain instead, freeing Pablo.
Ash reveals that he had been playing Baal the entire time as it was the only way to get him close enough to Pablo to recite the incantation to send him back to hell. Pablo removes his pendant, embracing his full power. Baal briefly overpowers him, but with the help of Ruby, Ash, Kelly and Linda, they are able to incapacitate Baal long enough for Pablo to harness the power of the Necronomicon, resulting in Baal exploding, but not before slicing Pablo's abdomen.
After a brief moment of feeling victorious, Ash, Kelly, Ruby and Linda watch in horror as Pablo falls to the floor after being cut in half and dies.