Hawkins Laboratory: Things are not going well for Joyce and Hopper. While Dr. Brenner is trying to convince Joyce that he's a good guy in one of the offices, Hopper is taking a few Taser shots from Brenner's henchmen. But they're able to strike a deal. In exchange for Hopper and Joyce's silence, Dr. Brenner will allow them to enter the Upside Down to look for Will. He, of course, probably doesn't believe they'll make it back out.
Once inside, they discover strange eggs and later, that Will's hiding place has been destroyed. He's not there. Eventually, they do find him. After pulling some crazy tentacle from his throat, Hopper administers CPR and Will's breathing returns.
Joyce's house: Having booby-trapped the place to the nines, Jonathan and Nancy intend to lure the monster out with blood, then kill it by setting it on fire. But Steve shows up and finds himself drawn into the plan when the monster suddenly arrives. The traps work and the fire is set, but the monster doesn't seem to be going down. After putting the fire out, the monster is gone. But is it dead?
The school: The boys and Eleven have been waiting at the school for news from the others. But Dr. Brenner and his men have arrived there and they want Eleven back. Chased down a hall, the kids find themselves trapped on both sides by Brenner and his agents. Already weakened by her time in the Upside Down, Eleven uses her powers to take out several of Brenner's people. She passes out. Brenner then arrives to collect her as his men grab the boys.
Then the lights begin to flicker. The boys realize that the bloody scene has attracted the monster's attention and it arrives. Brenner's men turn their attention to shooting it down and the boys escape with Eleven.
Eleven's last stand: But the monster wins the battle against Brenner's firepower and tracks down the kids. With Eleven passed out, the boys try to stave off the monster's attack by launching rocks at it with Lucas's slingshot. But Eleven awakens, pins the monster to the wall, then says, "Goodbye, Mike," before using the last bit of her power to blow herself and the monster to smithereens, or so it seems.
One month later: The boys, including Will, are back to playing their role-playing game at Mike's house. Jonathan arrives to pick Will up and we discover that Nancy is still dating Steve.
Hopper rushes out of the police Christmas party and drives to the forest to place Eggo waffles in a food chest — presumably in case Eleven is still somehow alive.
Back at Joyce's house, the family sits for dinner. But Will goes to the bathroom and coughs up some kind of slug into the sink as memories of the monster return to him. Clearly, he's keeping a dangerous secret.