A man wielding an axe confronts him and it is revealed he is Demeter. The spheres force him into a nearby barn. The next morning Reggie looks for the lady he picked up, Dawn, but finds that she's been killed by spheres. However his demeanor suddenly shifts to The Tall Man and Reggie sees the Lady in Lavender is physically conjoined with him and they warn him that he cannot escape. Jebediah explains he's near death and has lost many friends. Jebediah Morningside, the undertaker/scientist whom The Tall Man possessed, is lying in the bed next to him. Reggie dreams of being in a hospital again but it appears to be from the 1860's. Later, The Tall Man shows up accompanied by his spheres. He tries his usual lady wooing but is politely rebuffed. Reggie tells her about his dealings with The Tall Man over the years and she is amazed by his tale. They go to a cabin on a farm and Reggie learns that a Bulgarian man, Demeter, also works there. Her car isn't working, so he offers her a lift. In an apparent dream world, Reggie meets a woman who mistakes him for a friend. Mike is with him and they discuss matters of reality relating to Reggie's condition. While fending off the spheres, Reggie suddenly awakens in a hospital, much older, in a wheelchair, and suffering from dementia.
One sphere kills the thief while the other pursues Reggie. He throws the thief out but two spheres suddenly fly by. Reggie is given a ride by a passing motorist who happens to be driving Reggie's Barracuda.
The film begins with Reggie, wandering in the desert on foot, having returned from wherever he journeyed at the end of the previous film.