Provided Norman Jayden survived his ordeal with Jackson Neville (determined by how the player handled that chapter), he investigates the Blue Lagoon night club hoping to interrogate Paco Mendez, the name supplied by Mad Jack. It takes place chronologically after Madison Paige leaves the club in the previous chapter, "Sexy Girl."
Norman arrives at the Blue Lagoon and gets directions to Paco's office from the bouncer, possibly passing Madison as she leaves. In the office, he finds Paco dead of a gunshot to the head and is ambushed by the Origami Killer, who attacks him with a katana. If Norman survives long enough for the killer to throw him into Paco's fish tank, the killer will escape and Norman will have a chance to talk to the doorman and search the office for clues with ARI.
- Main article: /Walkthrough
- Nerd – Finding all clues in this chapter is required for this trophy.
- This is the second of the four chapters in which Norman can die. The other chapters are "Mad Jack," "Solving the Puzzle," and "The Old Warehouse."
- This is the third chapter where the opening can be changed.
- If Jayden looks at Paco's body from the front instead of turning it around, he will see the killer and pull out his gun before he is knocked down. After the fight, the player must retrieve Jayden's gun. Strangely, Jayden also drops his weapon if he turns Paco around, but still has it after the fight without picking it up.
- There is a small graphical glitch that can appear in this chapter. As the chapter starts, a split cutscene showing the Origami Killer talking with Paco will begin. Although it is unlikely for a player to do this on his/her first attempt of the chapter (especially since the player would probably want to see the full split-scene), if the player were to quickly maneuver through the crowd and make it to the room, that split-cutscene will end abruptly -- but the scene Norman finds as he enters Paco's room remains unchanged, which means that the split-screen cutscene can be construed as being more of a flashback (albeit a very recent one).
- If Madison is killed in "The Doc" and Norman survives the fight with Mad Jack, the intro of this chapter will pan around the Blue Lagoon (since the player would not be familiar with it if the player had skipped "Sexy Girl") and Madison will not walk past Norman.
- It is never explained how Paco would've untied himself after Madison left him tied up. It is possible that one of his bouncers untied him.
- This chapter is perhaps the greatest hint of the Origami Killer's true identity that the player can encounter before its true revelation, considering the stature of the man fought by Norman. This is also the only time the killer appears (whilst understood to be the killer) in disguise.
- Norman can only be hit once with the katana; if hit more, he will die.
Chapters played as Ethan (in chronological order) - Prologue | The Mall | Father and Son | The Shrink | The Park | Where's Shaun? | Paparazzi | Lexington Station | The Motel | The Bear | The Butterfly | The Lizard | Fugitive | The Shark | On the Loose | The Rat | The Old Warehouse
Chapters played as Scott (in chronological order) - Sleazy Place | Hassan's Shop | Suicide Baby | A Visitor | Kramer's Party | The Golf Club | Manfred | Eureka | The Cemetery | Flowers on the Grave | Trapped | Face to Face | Hold My Hand | Origami Killer
Chapters played as Norman (in chronological order) - Crime Scene | Welcome, Norman | Kick Off Meeting | Nathaniel | Covered Market | Shrink and Punches | Jayden Blues | Under Arrest | Mad Jack | Fish Tank | Solving the Puzzle | The Old Warehouse