The children arrive at the Lucky Smells Lumber Mill and unearth some unsettling accusations about their parents. Count Olaf courts an old flame.

Klaus and Violet look for clues in a suspicious note that passes custody to Captain Sham, a seafaring scam artist with clear ties to Count Olaf.

The orphans arrive at the aptly named Lake Lachrymose to meet their widowed Aunt Josephine, a strict grammarian who’s haunted by the past.