Edward Mordrake continues his search for a freak worthy enough to join his troupe in the afterlife. We soon learn backstory on a handful of characters in Elsa's freak show including Suzi, Paul and even Elsa herself. Spoilers, it gets extremely horrific.
We also learn the tragic backstory that led Twisty the Clown to become sadistic serial killer that he now is. It involved a traveling circus show, some evil dwarves and a shotgun to the face.
Meanwhile, Dandy is still extremely frustrated that he couldn't join the Freak Show so he takes matters into his own hands. By the episode's end, he finally commits a long-awaited murder.