The Institute season 1 episode 3 ending explained: What does Avery see in the Back Half?

The Institute season 1 episode 3, titled Graduation, premiered on July 20, 2025, on MGM+. Brad Turner directed the episode from a screenplay written by Sam Sheridan. The latest episode centers on Kalisha's graduation from the facility and her transfer to the mysterious Back Half of the institution, from where she will likely never return.

The mystery deepens in the third episode of the horror series as audiences get the first sense of the dreadful Back Half. Avery tries to see through Kalisha's eyes as she enters the place, but his telepathic powers fall short, revealing that the location is protected from outside influence.

Disclaimer: This article contains spoilers for The Institute season 1.

The kids lose another member to the Back Half in The Institute season 1

Simone Miller seen as Kalisha in The Institute season 1 episode 3 (Image via Instagram/@mgmplus)

Luke begins The Institute season 1 episode 3 by undergoing another experiment to unlock his telepathic abilities, leaving him physically and mentally drained. Although the experiment yields the desired result of noticing a series of dots, Luke hides the fact from Hendricks. It's a hopeful sign that his telepathic (TP) powers are awakening and can prove useful in the escape plan.

For now, though, Luke and his friends have to rely on the 10-year-old Avery Dixon, the facility's latest addition, with superior TP abilities, to find an ally within the staff. Avery's discovery of an old playground at the other end (by reading the mind of a guard dog) gives the group a crucial piece of information to hatch their escape plan.

Kalisha graduates from the facility and is sent to the dreaded Back Half, a sinister place from which kids seemingly vanish into thin air. After a tearful goodbye with friends, Kalisha is escorted through a tunnel towards the Back Half. Avery tries to read her mind during this time, but loses the connection as soon as she enters the place.

Annie meets her end in The Institute season 1

Ben Barnes plays Tim Jamieson in The Institute season 1 (Image via Instagram/@mgmplus)

When Tim meets Annie at the start of episode 3, she predicts that a plane will crash soon as a result of the pilot being fed the wrong numbers telepathically. She also mentions hearing a humming sound before, which was also heard by the kids at the facility. Before Tim leaves, she warns him to stay away from Route 10, which is where the titular facility is located.

Later at the bar, Tim watches the news about a plane crash in which the North Dakota senator, Gavin Ramsey, was killed. Remembering Annie's words, Tim wonders if there's any truth to her claims of mind control. He inquires about the Institute with the local journalist Kate, unaware that she is a part of the facility.

She downplays the seriousness of the claims floating around town, dismissing them as mindless conspiracy theories. As the Institute's covert activities come into focus, it raises questions about their ultimate goal and highlights the urgency to save the kids.

At the end of The Institute season 1 episode 3, Tim discovers Annie's dead body in her tent, next to a bottle of pills and alcohol. He knew Annie didn't drink alcohol and quickly realizes that someone had killed her and staged the scene to look like suicide.

Annie's death may serve as the catalyst for Tim to dig into the Institute's activities and become aware of the larger conspiracy at hand.

Sigsby plans to expose her colleagues in The Institute season 1

Mary-Louise Parker seen as Ms. Sigsby in The Institute season 1 (Image via Instagram/@mgmplus)

Episode 3 of The Institute sets the stage for a major showdown between Sigsby and her associates, Stackhouse and Hendricks. Suspicions and paranoia take root as she catches Hendricks lying to her. She is on the right track, as both men are colluding to sell the gifted kids to nefarious rich people for extra money.

To find answers, Sigsby goes through the CCTV footage of both men engaging in a secret conversation, but cannot hear the details as Stackhouse had very visibly muted the audio of the surveillance camera. Fearing they are conspiring to oust her, Sigsby reports to her superior, but she is asked to come back with proof.

She also closely monitors Avery and Luke, determined to stay one step ahead of them. But as her focus will shift to exposing her co-workers in the coming episodes, the distracted management may just give the kids the right opportunity to make their escape.

Watch all episodes of The Institute season 1 exclusively on MGM+.

About the author

Deepti is an entertainment writer at Sportskeeda. She comes with more than 6 years of experience in the creative writing field and has written extensively for the entertainment and travel domains.

She holds a degree in Chemistry, but her true interest always lay in the creative field. A passion for reading from a young age fueled her desire to make a career change later in life and take up writing as her profession.

Apart from reading, her hobbies include watching movies, listening to music, and going to the beach. In her free time, she can be found looking up reviews of new and old films to add to her watchlist. She also enjoys watching foreign language films that help expand her knowledge base regarding different cultures around the world.

Asked to describe herself, she would promptly mention that she is a die-hard Swiftie and enjoys nothing more than listening to Taylor Swift songs on loop while writing.

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Edited by Tiasha