Continued from last issue... Spider-Man is mulling over his battle against the Man-Wolf and J. Jonah Jameson's threats over Spider-Man trying to stop the beast, when he's attacked by the wolf-monster again. During their fight, Spider-Man notices the necklace worn by the monster and finds it familiar. When the moon begins to set, the Man-Wolf makes a break for it, Spider-Man tries to follow and trips himself up on some garbage cans. Having lost the Man-Wolf, Spider-Man returns to his apartment, where he changes back to Peter Parker, notices that Harry is still hasn't been home, and passes out for the night after patching up his wounds from battling the Man-Wolf.
The next day, Mary Jane is having breakfast with Flash and Randy Robertson, talking about both Peter and Harry's attitudes, when Harry enters the same diner. When Mary Jane tries to get Harry to talk to her, he lashes out at her for paying more attention to Peter Parker than him and tells her to get lost. Upset and shocked by this, Mary Jane flees the diner in tears. While elsewhere in the city, J. Jonah Jameson pays a visit to his son John's apartment. There he finds John passed out on the couch waring the exact same outfit the Man-Wolf wore the night before, confirming his suspicions that his son is somehow the monster that attacked him.
Waking up John, Jonah asks him to explain how he could turn into the Man-Wolf. John explains to Jonah that one his last mission to the moon he had come across a strange stone which he took back with him to Earth. There he had it fashioned into the very necklace that he is wearing. The first night wearing it, when the light of the moon touched the necklace it transformed him into the Man-Wolf. Explaining that he tried to keep it under control with a special suit that blocks most lunar radiation, it seems he's ultimately failed, and he cannot take off the necklace because it's grafted itself to his skin.
Hour later, Peter changes to Spider-Man to see if Joe Robertson can shed some light on the pendant he saw the Man-Wolf wearing the night before. However when he arrives at the Bugle building, Jameson is waiting there for him with police officers and he is forced to flee. Effected by the tear gas that the police used him, Spidey changes back to Peter Parker and goes to the closest place he can find: Mary Jane's apartment. But when she mistakes his weariness as sullenness she kicks him out of her apartment and tells him not to call on her until he's more pleasant.
That night Jonah is at John's apartment to confront his son, who is once more changing into the Man-Wolf. This is also happening at a time Kristine is on her way for a date with John. While Peter Parker finally connects all the things he saw about the Man-Wolf and correctly deduces that he's John Jameson. Spider-Man arrives just as the Man-Wolf is about to attack her and rips the necklace off the creatures body, causing it to change back to John Jameson. When Jonah comes out to check on his son, Spider-Man tells him to take John to a hospital. When Jameson fears the publicity, Spider-Man tells him that he has to take responsibility because his son could have hurt or killed someone. Spider-Man then throws the necklace as far away as possible (it lands in the nearby river) and walks off, when Jameson tries to thank Spider-Man, the wall-crawler tells him to save it for the papers.