Rimmer and Kryten have a rather nasty accident while moon-hopping: Kryten is left in pieces among the wreckage of Starbug and Rimmer is gone. When Lister and Cat arrive, they find themselves on a psi-moon, a planetoid which terraforms itself to match the psyche of anyone who lands on it. The psi-moon takes on the formation of Rimmer's psyche and he is subsequently captured by his Inner Demons and set to be sacrificed to the manifestation of his Self-Loathing. The crew rescues him, and themselves, by boosting Rimmer's self-esteem to overcome his doubts and fears.
Trivia- According to this episode, Lister's greatest fear is for a tarantula to crawl up his leg. However in "Polymorph" in Series III, he reveals that the Polymorph form that leaps out of the bin to be his "All time worst fear", although he probably only said this on impulse, given the situation.
- On the psi-moon Rimmer has a physical presence. Thus, Lister is able to touch Rimmer's leg, and they also have a group hug.
- The title is a pun on the word 'terror' and 'terraform'.