One year after season 1's events, Nancy is still dating Steve, with whom she regularly visits Barb's parents for dinner. Unaware of Barb's death, the Hollands have hired a private investigator, Murray Bauman, to look into her disappearance. Nancy, still overcome with grief over Barb's death, gets drunk at a party and begins verbally berating Steve when he tries to cut her off from drinking more. After Steve angrily leaves the party, Jonathan escorts Nancy back home. When Nancy next sees Steve at school, she is unable to tell him she loves him, essentially severing their relationship.
Nancy confides in Jonathan and the two arrange a meeting with Barb's mother in the park. At the park, Nancy and Jonathan are overcome with the suspicion they are being watched, which is confirmed when they are intercepted by agents of the Hawkins Lab. They secretly record a conversation with Dr. Sam Owens, who explains that he is trying to amend for Dr. Martin Brenner's mistakes, admitting to culpability in Barbara's death. Nancy and Jonathan visit Murray at his residence to see if the evidence is damning enough to lead to the shutdown of Hawkins Lab. Murray suggests that they water down the story to make it more believable to the public. Recognizing the obvious tension between Nancy and Jonathan, Murray suggests that they share the bedroom. Though they initially resist, Nancy and Jonathan end up sleeping together that night.