Simone and Sipowicz investigate a case where two transvestites witnessed a murder that they say was committed by a 'gay-basher' who's supposed to have been in jail for a previous crime. Meanwhile, Fancy's former foster son is arrested and charged with possession of a kilogram of heroin. He tries to make a deal with Sgt. Ray Kahlins, the "blow hard" from the DEA who worked out of the squad room the previous year, to nab the drug dealers. Medavoy finally asks out Abby Sullivan, the beat cop from the anti-crime unit upstairs. But she turns him down by revealing that she is a lesbian. Elsewhere, Russell gets more deeper involved in her undercover work which puts a strain on her relationship with Simone. But the psycho Jimmy's malevolence puts Russell's life in danger when he puts a drug in her drink.

Two trans women, named Angela and Peaches who assisted Russell on a previous case, arrive at the precinct where 'Angela' is seeking protection from a man who's beaten him. But afterwords, Angela is founded murdered and Sipowicz, Simone and Russell investigate. They eventually receive help from Simone's former junkie informant, Arthur Cartwell, to find the perp. Meanwhile, Kirkendell investigates the theft of some small items by a old friend's parents. Kirkendell confronts her old school friend, Lucy Hastings, to persuade her to return the items as well as enroll in a substance abuse program. Elsewhere, Fancy's wife, Lillian, tries to sell some health food products at the precinct, but Fancy begins to think that it is not a good idea.