SHADO engages in its first battle with the enemy. Sky One cripples an alien ship which crash-lands in a lake. Straker's team capture its pilot, a strange blue-skinned humanoid - and the grim secret behind the aliens' are revealed.

Foster, whose radio is knocked out and his oxygen line cut, is presumed lost (but they did a crummy job, not even trying to find his body) during a confrontation with a UFO on the moon's surface. Foster is found by an alien, and together, they cross the lunar landscape, developing a friendship when the alien must try to do make-shift repairs on Foster's suit to keep him alive. At the end, a Moonmobile crew finds Foster and misunderstands his intent when he points them to the alien nearby.

Two of the SHADO people, dining at a fancy restaurant, begin to recall this event after one of them sees a diner who was part of Dalotek. A private company installed a facility on the moon which discovered an alien device that disrupted Communications between Moonbase and SHADO on Earth.

A flashback episode in which Straker recalls his marriage, followed by stormy days as he must work covertly to get SHADO up and running and recruit personnel. All this leaves his wife angry at his absence, suspicious at the things he might be doing (her father photographs Straker meeting a woman in a parking garage, a woman who will be working at SHADO). In the end, she gives birth to their son.