Violet, Klaus, and Sunny are taken to the Caligari Carnival where they disguise themselves as freaks while Count Olaf seeks the help of Madame Lulu to locate the children and find out the truth concerning their parents' death.
Lost at sea, the Baudelaire orphans, along with the evil Count Olaf, wash up on the shore of an island populated by an oddly placid group of inhabitants, and they try to decide whether or not they are truly safe.