The Institute season 1 episode 4 premiered at 9 pm ET on July 27, 2025, on MGM+. Titled The Box, the episode is written and directed by Sophie Owens-Bender and Brad Turner, respectively. The show's slow-burn narrative picks up pace in episode 4 as several characters reach a turning point in their storylines.
The episode delves into the impact of the Dream Box and Back Half, offering important clues that deepen the mystery surrounding the institute's secret activities. Luke's TP powers were unlocked in episode 3, but he hides them from Handricks and Tony even when subjected to severe torture.
Disclaimer: This article contains spoilers for The Institute season 1 episode 4.
Luke develops surprisingly new psychic powers in The Institute season 1 episode 4

The Institute season 1 episode 4 showcases the much-talked-about Dream Box, the final test that kids go through before being sent to the Back Half. Luke is unofficially put through the test, where he experiences a trippy sequence of disturbing images. Luke maintains the ruse that he is not yet telepathic, leading Hendricks to conclude that he failed the test and is not ready for the Back Half.
Luke is determined to stay in the Front Half long enough to come up with an escape plan, but it proves difficult after the arrival of new kids at the titular facility. The teenager Harry Cross and twin girls, Gerda and Greta, whose appearance is a subtle nod to The Shining, become the latest additions to the group of gifted kids. Sigsby believes that twins bring out each other's psychic abilities, making them suitable for the PC track.
After his initial tests, Harry becomes violent and kills Greta in a rage. Shockingly, Luke sees it happen moments before and tries to warn the staff, but they can’t stop it. Realizing Luke has telepathic (TP) powers, Tony and Hendricks try to force a confession by locking him in a vacuum chamber and suffocating him, but he stays silent. Now, with the institute determined to confirm he's TP, Luke must hold out and stick to his escape plan.
Moreover, Luke's premonition seems similar to Annie's prediction of the plane crash in episode 3. It likely means that Annie was TP too and was once held at the Institute, just like these kids.
Luke and Avery make contact with Kalisha in the Back Half

Avery creates a telepathic link with Kalisha in the Back Half, with Luke joining in with his newfound psychic powers. The duo gets a tour of the dingy Back Half through Kalisha's eyes and find everyone dressed in matching jumpsuits, looking strung-out.
Kalisha explains that they don't have to undergo any tests, unlike the Front Half, and get unlimited access to cigarettes. They do, however, have something called movie nights, wherein they watch people through a hidden camera and get inside their heads after closing their eyes, like in first-person shooter games.
She also mentions that it takes a toll on them mentally, leaving them with splitting headaches. Iris, who has experienced too many movie nights, looks completely out of it. Avery tries to look inside the recovery room, the source of the humming sound, but the signal is too powerful and he loses the connection.
Thankfully, they don't have to wait too long as Maureen unwittingly gives them their biggest clue. Avery reads Maureen's mind as she thinks of wheeling unconscious kids into the recovery room, at the end of The Institute season 1 episode 4.
Tim's search leads him to the Red Steps in The Institute
season 1 episode 4

Following Annie's death, Tim goes searching in her tent for evidence of foul play. He finds a map to the Red Steps and a news article about Kelly Sloane and her friends' accidental death at the location. Annie had previously claimed that Kelly and her friends were killed, giving Tim the motivation to check out the Red Steps, which are located near the Institute.
Tim finds an ally in Officer Wendy, who shares her high school yearbook with him as it contains pictures of Kelly and her friends. Noticeably, all the teenagers have the word 'notre pain' or 'our bread' written under their pictures. Tim's investigation will unravel the significance of the words and their connection to the Institute in the coming episodes.
Viewers can watch The Institute season 1 episode 4 exclusively on MGM+.