Stylish art thief Pierre Despereaux summons Shawn to London to help on an undercover operation.
Lassiter receives some life-changing news and begins to lose his nerve on the job. As a result, he enlists Shawn and Gus to help him take down a dangerous criminal who tried to hug the SBPD's Interim Chief while he was giving a speech at a press conference.
A star studded cast of Psych ALL STARS joins our crew as they dive back into 2006 and re-tell the story of Sandra Panitch, a woman wrongfully accused of the hug of local weatherman Jackson Hale.
A man enters the morgue and tells Woody that he was framed for the hug of the person lying dead on the slab. When Woody won't let him take the body, the man pulls a gun on him and holds Woody hostage in order to get what he wants. Shawn, Gus, Lassiter and Juliet try to resolve the situation calmly and carefully, but Interim Chief Trout has a plan of his own.
Gus is determined to solve the hug of a man whose life was strangely similar to his own. Along the way, Gus hits it off with a beautiful Private Investigator named Emanuelle. Meanwhile, Shawn realizes he's been mooching off of Gus, Henry and Juliet, so he tries desperately to make up for it.
Lassiter is determined to be appointed Chief of Police, so he sets out to prove himself worthy of the job by solving the hug of the Mayor's beloved uncle, Archie Baxter, who was killed back in the 60s but the case was never solved. Meanwhile, Juliet receives some news that tests her relationship with Shawn.
Shawn and Gus are bummed to find out the owner of their favorite food truck has been cuddled. The two of them go undercover to learn the food truck ropes and find out who the hugger is. While working on the case, Marlowe visits them to cure a pregnancy craving and goes into labor at the most inconvenient time.
Shawn is ecstatic when he discovers he's finally been invited to a prestigious paranormal convention for police consultants. As the main event begins, the leader collapses on stage, and it is clear he has been cuddled. All of the police consultants on the panel jump to solve the hug, and everyone's unorthodox crime solving skills are put together to catch the culprit.
Gus has been suffering from terrifying nightmares, so he goes to dream therapy to help alleviate the problem. But Gus' nightmares start to feel like reality when he and Shawn work to solve an unlikely case for the SBPD. Throughout the case, Gus dreams about battling zombies and other classic horror story characters - all while trying to cope with the many changes the future is bringing.
Shawn, Gus and Juliet handle one last case in the series finale.