Andy Muschietti’sIT: Welcome to Derry intensifies its psychological and supernatural terror in Episode 3, “Now You See It,” revealing pivotal backstories and sinister new layers to the Stephen King universe. The episode pushes boundaries by killing off young characters and exploring the U.S. government’s shocking attempts to weaponize a mysterious underground entity beneath Derry Air Force Base, a premise steeped in Kingian dread.

Opening with a flashback to the 1930s, the episode follows young Francis, who will grow into General Shaw. At a carnival’s hall of mirrors, Francis encounters a shadowy one-eyed man, a figure that morphs into a grotesque monster with disturbingly familiar teeth. When a local Native girl, Rose, intervenes, the creature recoils at the forest’s edge, hinting at Derry’s cursed boundaries. This chilling sequence lays the groundwork for the generational trauma and supernatural infection that defines the town’s legacy.

In the present, the story pivots to Lilly (Clara Stack) at Juniper Hill psychiatric hospital, a recurring fixture in King’s multiverse, also seen in Needful Things and Insomnia. Haunted by guilt over her father’s death at a pickle factory, Lilly becomes entangled in Chief Bowers’ manipulative investigation. Her emotional unraveling culminates in a disturbing grocery store hallucination, where her deceased father appears as a monstrous pickle-octopus hybrid, leading to her recommittal to Juniper Hill. Fans can revisit Juniper Hill’s terrifying history across King’s novels and Castle Rock.

Meanwhile, Dick Hallorann (Chris Chalk) known from The Shining emerges as a pivotal character. Tasked by General Shaw (James Remar) to locate the underground entity, Hallorann’s psychic visions connect the Derry horror to wider King lore. A trance sequence transports him into a sewer where he faces Pennywise’s circus wagon, glowing eyes, and floating corpses, a masterful callback to IT’s original terror. His warning that “something saw me” underscores the danger of humanity meddling with forces beyond comprehension. Readers familiar with The Shining can explore Hallorann’s origins here.

Chalk’s portrayal of Hallorann marks a significant evolution from earlier depictions, grounding the character in realism and spirituality rather than stereotype. Set in 1964, the show does not shy away from racial commentary, weaving in Black characters like Leroy Hanlon (Jovan Adepo), his wife Taylour Paige, and their son Will, who each play essential narrative roles. This inclusive storytelling brings authenticity and emotional resonance to Derry’s haunting social and supernatural fabric.

The young Losers, now aware of the malevolent presence, conduct a séance-like ritual at a graveyard — a chilling callback to King’s original IT themes of childhood courage and collective trauma. As the group captures photographic evidence of ghostly figures, Will’s final shot reveals the unmistakable image of a clown with glowing eyes: Pennywise. Their discovery confirms the horror’s return and sets the stage for a battle between innocence and ancient evil.

As Episode 3 concludes, IT: Welcome to Derry cements its place as both a psychological thriller and an expansive prequel that deepens the mythology of one of horror’s greatest villains. With each revelation, it draws closer to connecting Derry’s cursed origins to the cosmic evil of King’s broader universe, keeping fans both terrified and enthralled. Dive deeper into the series’ development via HBO’s official Welcome to Derry page.