It involves a movie star becoming trapped in the world of her film as the result of a curse, reliving an old story involving infidelity and murder. Entering Sue's bedroom, Nikki finds the Phantom-killing gun that Smithy was given. They shoot a scene where Sue and Billy begin to hook up. There was also no air conditioning, but Lynch calls shooting in the warehouse a great experience. It is Sue and Billy’s first time having sex. The Producer claims that they don’t know the actual real reasons that the original movie wasn’t finished. This sounds like dialogue from our script!” Kingsley yells, “What the bloody hell’s going on?” He hears a tapping outside, and Jane says, "I don't think it will be much longer now. Devon still is worried that the stories are true. Suzie performs a strange ritual, holding two candles over her head, which causes the room to turn red and briefly brings on a hellish apparition of Jack. Three anthropomorphic Rabbits speak in seeming non sequiturs in a sitcom set, as a studio audience occasionally laughs and applauds.
The Valley Girls all run. In the hallway outside of the Lost Girl's room, Lori and Lanni run joyously, hand in hand.
Billy comes in, and Sue tells him, “Somethin’s wrong. Billy responds, "That doesn't make any sense. Devon, worried by Nikki's erratic behavior, confronts the producer about the curse. A ketchup bottle explodes all over Smithy’s white T-shirt. The rest of the room lights up and he fades. She has been asking in an “ancient foreign voice,” “Who is playing Smithy?” Sue then has a strange out-of-body experience. Sue in the bathrobe becomes scared while the Valley Girls dance behind her. When the scene cuts, Kingsley asks, “Are you two happy?” Nikki stares at Devon with a shocked look. They had access to the Paramount soundstages, but financially could not afford to shoot there much. Sue comes in; Doris knows her. Back in the same office, Jack has been replaced by Back at home, Sue walks out of the bedroom into the red lamp room and sees the still-smoldering smoldering cigarette. Smithy is lurking. Sue sees Doris coming at her, dressed as she was in the interrogation room scene.
Lanni laughs hysterically, and her laugh transports the Valley Girls to…
A woman’s arm clad in red points, seemingly controlling Sue's movements as she walks upstairs.
Sue comes home with groceries and calls out.
A horse-driven carriage drives by, as does an old-fashioned car.
When she uncovers it, she is on a snowy Polish street, wearing the same clothes. The husband tells him it is The Lost Girl watches Smithy waiting on TV, sadly.
Billy laughs mockingly at her. On the other end, Jack says nothing, and the During the day, Sue again looks through the cigarette hole in the silk. He’s around here someplace, that’s for sure." A man walks by and asks if he has the time. She tells a story about a man attacking her with a crowbar because he (rightly) suspected that she was cheating on him. In Sue's living room, the Valley Girls dance in a circle in the dark to Etta James’s “Later, Sue gets out of bed in the middle of the night and makes a phone call. The Woman does not recognize the hallway, and does not have key. station, the Polish Wife lying dead on the stairs, and the Phantom in a bar wiggling his finger and speaking scratchily and incoherently, hypnotizing her.
Nikki sits in her home with Visitor #1. Although the film jumps through time and between multiple planes of reality over its three-hour runtime, and is of course subject to various interpretations, the basic story is not as confusing as it at first seems.
Doris, furious, repeatedly smacks Sue, as Sue professes her love for Billy in front of his wife and son. Sue sits in the red lamp room smoking a cigarette. The go inside, and she does not recognize the room. Smithy returns home, now with a Nikki reappears in the Rabbits’ house. Lynch says that the film starts with a very very faint wind.
She talks about a guy named Sue goes to Los Angeles. She has “LB” written on her right hand, crossed out in red. No more blue tomorrows. When she tries to exit, she can’t—the door seems locked from the outside. This is followed a sound that is "quite loud." After some conversation, the room turns red and Jack urgently says, "It was Sue sits outside behind her house in a storm, intercut with Sue inside in a bathrobe during a storm. Freddie spots her.
She walks to the buearu in the bedroom and opens the drawer (as she saw herself do on screen). There are a couple of light bulbs on the ceiling, but otherwise complete darkness. The warehouse was right near busy train tracks, and a mood appeared. Sue runs. She rejoins the Valley Girls on Hollywood Blvd. Sue is on the streets of Los Angeles with the Valley Girls, now as prostitutes. Chelsi says to Lanni and Lori, “Hey, look at me and tell me if you’ve known me before." Lynch's longtime collaborator and then-wife Mary Sweeney co-produced the film. She prays, in Polish, “Cast out this wicked dream that has seized my heart.” Nikki then breaks character and says, “Damn!
I start to remember." Nikki disappears. Bad wrong.” She asks if Billy loves her, and if he remembers how it was. Lynch at the time frequently stated that he was done shooting on film. The door light goes down; Jack exits. It turns into a cinema. Lynch discusses the process for making the film on the One day, Lynch ran into Laura Dern, who had just moved to his neighborhood. She calls Billy, but somehow gets the Rabbits' home. Chelsi stands on the sidewalk , in period clothes. She sees Devon outside the window, looking in, but he doesn’t see her. Smithy watches them from the hallway. He doesn’t answer her, and goes into a room. The Phantom and the Lost Girl are married. A dancing ballerina is superimposed over her as she is bathed in beautiful light. A Polish Husband (an earlier incarnation of Piotrek/Smithy) and his The Husband stands on the sidewalk, waiting for the Lost Girl.