Mary is a successful author of thriller novels, and happily married to her husband Tom with children. Her publisher asks her to write another volume in her most successful book series and offers her a two million dollar advance. She declines at first but is forced to accept when Tom reveals he lost half of their estate by gambling on a risky investment. To help, her friend Elaine suggests she get a nanny through a recommended agency. Thereafter, Mary has a series of bad interviews with caregivers and considers giving up, until Grace applies and seems perfect for the position. Mary is suffering from writer's block and uses her blossoming friendship with Grace to help with this.
Mary starts having what appears to be sexual fantasies about Grace, which she confides with in Elaine. However, when she approaches Grace to say they can't do it ever again, Grace seemingly has no idea what Mary is talking about. Elaine begins privately questioning Grace. Tom almost walks into the kitchen while Grace and Mary are engaged in a sexual act. Mary sleeps and has what appears to be a dream about Grace and her husband engaging in sexual activity, which Mary cannot seem to figure out is reality or a product of her dreams. She confronts her husband and Grace at the dinner table, upsetting her children as well as Grace and her husband.
The following morning, Mary apologizes, saying her outburst was the result of working too hard. She calls the nanny agency to ask why they haven't cashed the check she gave them, and they tell her that she hasn't actually picked a nanny yet . Mary travels to find out who Grace actually is. She visits Elaine, and shockingly, finds her dead with a pair of scissors in her neck. She then contacts the police.
To the horror and surprise of Mary, she learns that she is the main suspect in the crime and that the police have overwhelming evidence that she is responsible, including video of Mary seemingly arriving at the scene, although her face is obscured. She does not admit any guilt and is released pending investigation. She visits Grace's aunt who tells Mary that Grace had been abused as a child by her parents, and was the only one of her siblings to survive the abuse. Mary calls Tom to warn him about Grace, but gets his voicemail.
Tom is in the shower when Grace arrives dressed seductively and brandishing a large knife. She attacks Tom in the shower. Mary arrives and finds Tom injured, but Grace claims not to know what happened, saying 'I couldn't stop her.' It is then revealed that Grace suffers from dissociative identity disorder and that her other “identity” (Margaret) attacked Tom and continues to flit in and out of Grace's reality. Mary overpowers Grace, hitting her with a flowerpot and knocking her unconscious.
A year later, Mary and her family are still together. Mary rests the manuscript of her book at Elaine's grave, and then goes to visit Grace in a mental hospital. The film ends with "Mary" leaving the hospital in the same attire and obscured face as in the police video.
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