In the fourth season, Ethan returns to Sunnydale in the episode "A New Man". Discovered lurking in a crypt by Giles, he talks him out of a promised beating, and instead, they go for a drink together. Ethan warns Giles that the Initiative is throwing the worlds out of balance, which goes "way beyond chaos", into "one hell of a fight". Giles doesn't seem to take the warning seriously, instead being somewhat envious of the Initiative. After spending the night reminiscing and drinking with Ethan, Giles wakes the next morning in the form of a Fyarl demon. After being forced to reverse the spell, Ethan is arrested by the Initiative, who apparently place him in military custody pending determination of his status, before sending him to a rehabilitation facility in Nevada. Afterwards, despite not trusting Ethan, Giles had Buffy to be cautious with the Initiative, eventually leading the Scooby Gang to discover its corruption and dangerous plans.