Lured by a vision of Lori, Rick steps outside the prison's fence, where he spends the rest of the episode. While he's "wandering Crazytown," in Glenn's colorful phrasing, some other stuff happens. In Woodbury, the Governor admits defeat to Andrea, asking her to take over as leader and claiming he has no interest in retaliating against her friends at the prison. But that's not what he tells Milton, and Andrea's not able to find the Governor when she goes looking for him later. Daryl and Merle's Excellent Adventure is not going smoothly, as they're lost in the woods and arguing. When things come to a head after Daryl insists on rescuing a family besieged by walkers on a bridge, he decides to return to the prison. Merle says he can't come, but it looks like he's going to have to anyway. Dude's not exactly loaded down with supplies.
Back at the prison, Hershel's doing his best to keep everyone together, but it's not easy. Angry Glenn is pissed at everyone, Maggie is barely talking to him, and he keeps wanting to go on these Rambo missions, the last one being driving off alone to check the condition of the far side of the prison. Michonne's just camping out with her sword in the outer yard. And of course Rick's on walkabout, and although he confesses his visions to Hershel, he's still off chasing them. In fact, the only people who seem to be getting along are Carol and Axel, which is why it's kind of a bummer when Axel gets shot in the head.
Yes, the Governor has decided to make a move on the prison after all, and this is it. He and one of his men shoot up the place from outside the fence, while his lieutenant, Martinez, keeps Rick occupied with a gun duel at the edge of the woods and a man in one of the guard towers shoots at Carol and the kids. And as if the shooting weren't bad enough, a truck crashes through both front gates, not only destroying the prison's main fortification but offloading a crowd of walkers while its masked driver makes her getaway. Miraculously, though, no one else is killed, and Glenn makes it back in time to help Michonne save Hershel. But Rick's still on his own, outside the fence, out of ammo, and dealing with more walkers drawn by the gunfire. Lucky for him, the Dixon brothers come to the rescue at the last moment. Rick, Daryl, and Merle are left to stare helplessly across the prison's zombie-(re)infested outer yard at the rest of the group, who are now locked safely inside the inner yard, as the Governor and his surviving men take off, figuring their work is done. I suspect the Governor is being overly optimistic.
Using binoculars, Rick looks out over the prison yard from a high, fenced-in catwalk. There are a few walkers beyond the outer fence; not enough to worry about. He watches Michonne emerge from the overturned bus in the yard where she apparently sleeps these days, then pans across the grounds all the way over to the miniature graveyard. And there's the white-clad figure of Lori again, now standing over the crosses with her back to him. Rick picks up his rifle -- take the shot, Rick! -- but instead he slings it over his shoulder and walks out to graves.
Of course Lori vanishes right before he reaches her, but after looking around some more, he spots her again, now beyond the outer fence, near one of the guard towers. She steps out of view behind that structure, and Rick hurries to the nearest gate, ignoring Michonne as he runs past her and into the dog run, then outside the outer gate, leaving Michonne to close the inner door that he left swinging wide open behind him. Rick finds Lori standing on a small wooden footbridge over a creek that flows past the prison, and this time he gets close enough for her to actually touch him. Which she does, at least to whatever extent she can. Rick certainly seems to react as though her hand is real. But of course he has to know that she doesn't really exist because otherwise there's no way she'd be this clean. Meanwhile, Michonne stands inside the prison yard, watching in concern and confusion as Rick stands out there... doing whatever it is he's doing, by himself. If the Grimeses start having sex I hope she'll look away.
Things seem calm in Woodbury, with the streets quiet and the armed guards on the wall as usual. Andrea's hanging out in her place when she gets a visit from the Governor. He compliments her on the speech she delivered during last week's episode, and claims that he's not interested in retaliating against her friends at the prison. She wants to go see them, but the Governor would rather have a little pity party about how he's messed things up and isn't fit to lead. "But you are." Andrea asks if he's abdicating. Still processing his own crap, the Governor just says he thought Milton could find a cure for Penny if he kept her alive long enough. Finally he seems to realize that there are two people in this conversation and asks her to fill in, saying he'd understand if she chooses the prison, but they need her. Wow, Woodbury is in a lot worse shape than I realized if that's true. But of course Andrea is so convinced of her own awesomeness that I'm sure she's not doubting this for a second.