Sookie met her grandfather (Gray Cole) in Fairyland, but became suspicious of the fairies' intentions for Earth: they are harvesting humans to gear up an invasive presence to rival the vampires. Sookie does her white energy thing on the Fairy Borg Queen when they try to force her to submit to them (by eating the glowing fruit), and Fairyland turns to ashes and all the beautiful fairy people's plastic surgery melts away. Grampa Gary Cole grabs Sookie and escapes through the portal before it closes, but because he ate the glowing fruit himself, he can't survive as a mortal, and he turns to dust. (So long Gary Cole).
Sookie goes home to find Jason in a cop uniform, packing her things up. The town thought she was long dead, as her brief trip to Fairyland actually lasted a year in human time. Jason had just sold the family house to a development corp, but promises to try and stop the deal since she's back.
Jessica and Hoyt are now in a traditional domestic sitcom. She can't cook and he wants a nice meal after a hard day's work, haha. They go out dancing at Fangtasia, which is trying to remake its image as a human & family-friendly place in the wake of the damage done by Russell Eddington to vamp/human relations. Pam stops Jessica in the ladies room and mocks her attempt at a monogamous relationship with a human, since she spotted Jess drooling over a cute young fangbanger a little while ago. Jessica stands by her man.
In the year Sookie (and the rest of us) missed, Sam looks a lot worse for wear. He did shoot Tommy, but didn't kill him. He hit his spine though, and now Tommy walks with braces. Also, he has been taken in by Hoyt's mother and has found Jesus. (What a waste of a good sexy character)
Sheriff Andy is a V-addicted mess, and Deputy Jason has to constantly set him straight and cover his tracks (including keeping Lafayette quiet after Andy stupidly tries to score some V off him under the pretense of an undercover operation).
As soon as Sookie resurfaces, both Bill and Eric rush to find her. Bill is happy she's alive, and pledges to continue looking out for her even if she still can't forgive him. Sookie is torn on that point. Bill has become a pillar of the community (even though he was the primary suspect in Sookie's disappearance all this time), having dedicated a new community center. Bill provides an alibi for Sookie's absence, saying she was doing "vampire business" for him. Oh by the way, Bill is also the King of Vampires now.
Meanwhile, Tara really did move away. She is now a travelling MMA fighter and in a lesbian relationship with a fellow fighter. She sends Lafayette postcards from time to time.
Lafayette is still with the cute nurse witch guy, except now he is trying to recruit Lafayette to join his coven. We meet the lead witch of the coven, who is trying to revive her dead bird, and can't do it without Lafayette's powers added to the coven's. Lafayette doesn't really want to join, and is torn.
Eric still runs Fangtasia, and seemingly not much else is going on with him. Except that when Sookie tries to find out who bought her house, it turns out that the development corporation is actually Eric. Eric appears in the house when she's alone. She tries to banish him again, but she doesn't own the house anymore, he does -- which means she can't rescind invitations now. Asked why he went to all this trouble, Eric declares that Sookie is now his -- and produces his fangs, ready to claim her.