Shirley, the medium, places a curse on Eustace. The curse is that a raincloud floats over Eustace's head. The more heartless he is, the more extreme the storm gets. The only way to break the curse is for Eustace to show kindness. Courage has to hold a mirror up to Eustace's face, which causes Eustace to have a flashback and sees himself as a little boy in the mirror. He shows kindness by giving the little boy his hat because he is cold. He actually puts it on Courage's head thinking that he is the boy. The curse goes away, but then returns.
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