When Prue is arrested for stealing a priceless tiara, it is revealed that her boss, Rex, is a warlock. The sisters must prove Prue's innocence and vanquish Rex before its too late.
Phoebe's ex-boyfreind shows up with a stolen and cursed Egyptian urn, Prue tries to save the auction house from bankruptcy, and Piper's witchcraft backfires.
Every 1,300 years, a unique demon appears that feeds on the fears of witches. This time it is targeting the Halliwell sisters and they receive aid from their Wicca ancestors just as they are close to their own fearful deaths.
Piper is sent by her job to Hawaii leaving Prue and Phoebe by themselves to face a ghost who serially kills people that had to do with his execution for revenge.
The sisters face a demon named Abraxas, who steals the Book of Shadows and undoes some of the spells they've cast (in reverse order), releasing old vanquished enemies of the Charmed Ones.
Phoebe has a vivid premonition foretelling her own death - burned at the stake for killing a man with her powers - in the year 2009. To prevent her execution, the sisters travel to the future.
Prue finds some mysterious words on an unusual painting at the auction house, which, when said aloud, send her into another dimension within the painting of a castle.
Worried about cash flow in the struggling new P3 club, Phoebe and Prue conspire to take on a zero interest loan behind Piper's back, trusting that she will be able to make the club successful.
When Phoebe starts to have visions and feelings of a seductress who kills men, the Charmed Ones cast a spell to uncover the demon, but there is a glitch.
The sisters are forced to turn to a reluctant teen-ager (Jay Michael Ferguson) when an evil witch (Brigid Brannagh) escapes the confines of her 200-year-old prison.
A group of warlocks that are knowledge thieves, are hunting down a young man named Eric, who has uncovered the location of one of the greatest sources of power in the world - the Akashic Records. Meanwhile, Prue has her hands full.