A year later, Julie returns home from her college in Boston for the summer. Since the incident, the friends have gone their separate ways. Julie receives a letter with no return address, stating, "I know what you did last summer!" Disturbed, Julie tracks down Helen, who has returned to Southport to work at her family's department store after a failed attempt at an acting career in New York City. The girls take the note to Barry, who immediately suspects Max. They confront Max on the docks, and Barry threatens him with a hook. Julie meets Ray, who is now working as a fisherman; he unsuccessfully tries to reconcile with her. Julie meets up with George, who is now working as a host for a children's TV show, she showed the letter to George, then Julie and George meet up with Charlotte, who now works at a video store. She reconciles with George and Julie. Later, Max is killed by a figure in a rain slicker wielding a hook. Barry discovers a note in his gym locker saying, "I know." He is then ambushed by the same assailant driving Barry's car.
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