When Darryl goes to Piper, Phoebe, and Paige with the suspicions that his partner Mike has been possessed by some sort of magical being, they agree to help find out what's going on. However, Phoebe and Drake ultimately get transported back to the late 1880's when a famous Cabaret is destroyed in a fire. While there, the pair has to find out what happened that caused the fire or they'll be stuck in the past forever. Piper and Leo decide to stop worrying about the Elders might do to Leo and to live in the moment.

When Zankou attempts to ambush Piper, Phoebe, and Paige in order to obtain the power of the Nexus and use it to his own advantage, little Wyatt takes matters into his own hands by shrinking Leo and Piper and hiding them in a doll house for protection while Phoebe and Paige have to deal with the demon and his henchmen. After stopping Zankou for the moment, the sisters talk Leo into becoming the new Headmaster of Magic School, hoping that he'll get used to no longer having his powers.