It's a rainy morning as Jacob tells Dad about the friends he met on the other side of the mountain.
Dad wants to meet them, and Jacob says he'll introduce them… eventually.
When Jacob zips back to September 3, 1940, all the peculiars are putting on a little show. Here's an abbreviated version of the program: Miss Peregrine comes out as a bird and turns into a human; Olive floats above everyone else; Bronwyn lifts a rock the size of a fridge; Fiona makes plants grow; and Hugh spits out bees to pollinate Fiona's flowers.
After the show, Miss Peregrine goes to teach a lesson to the younger kids (by which we assume she means the sixty year olds) and Jacob has lunch with Emma and Millard.
Emma convinces everyone to go swimming, and they walk through town to the harbor.
Jacob is amazed that the town has pretty much reset exactly the way it was yesterday… which is today… which is also tomorrow… anyway, the point is that no one recognizes him.
The kids swim, and nap, and swim, and nap, and Jacob entertains them all with tales of the future.
On the way back, Jacob helps Emma pick an apple, and she kisses him on the cheek and gives him the apple.
He wants her to come with him to the other side, but she says it's a "bad idea" (7.108).
She agrees to go with him just for a minute, long enough for him to snap her pictures on his cellphone.
When Jacob returns to the bar, his dad tells him there's been a murder.
Well, not that extreme—a sheep has been killed. But these people love their sheep, and they're treating this like an episode of How To Get Away with Murder without Viola Davis.
The farmers think one of the white-rapper kids did it, either Dylan or Worm or Macklemore, or whatever his name is.
They also suspect Jacob, but his dad gives an alibi: He's with his friends on the other side of the island.
Of course, the farmers know that there is no one on the other side of the island, so Jacob says that his friends are imaginary.
They think Jacob is nuts—a kid with imaginary friends must be a sheep-killer, too.
Everyone tromps off to the scene of the crime. There are sheep parts everywhere like an exploding sheep charged in and went off.
The farmers decide Worm did it when he breaks down crying, and they lock him up in the museum.
Back at the inn, Dad is mad that Jacob lied to him.
He also wonders how Jacob got sunburned on such a cloudy day (it's not cloudy sixty years ago).
Before bed, Jacob sets the apple on his nightstand and gets out his cellphone to stare at Emma's picture until he falls asleep.