Chapter One: "At Midnight, All the Agents ..."

Rorschach journal narrates the grisly discovery of The Comedian's murder. Blood is staining the sidewalk, along with a yellow button happy face. The detective and his partner try to piece together the scene: someone broke into Edward Blake's apartment and overpowered him, something that strikes the lead detective as strange since Blake was a big guy with "muscles like a weightlifter" (pg. 2). They mention that Blake had been doing "overseas diplomatic work for years" (pg. 2). No valuables had been taken and they figure someone must have had it in for the guy. They deduce that the assailant had been thrown through the window and plummeted down to his death. They decide to study the case quietly in case of vigilantes coming in and trying to do their own investigating, namely a vigilante named Rorschach. As they leave the crime scene, a red-haired man holding a sign, "The End is Nigh," stands by, nonchalant.

Later that night, the vigilante Rorschach appears at the crime scene. He finds the small yellow happy face button in the gutter and then fires a grappling hook up to Blake's window. Climbing up the side of the building, he makes it inside. He looks around with a flashlight and he makes his way to the closet. He finds a secret button in the back that reveals a hidden department containing the clothing and hardware of a superhero. Rorschach studies the findings and discovers a photograph of a superhero team.

The same photograph is shown in the home of Hollis Mason, a retired superhero who is entertaining Dan Dreiberg, the man who took over Hollis' mantle after he retired. They discuss meeting old villains, now reformed and make other small talk. Dan leaves and heads home where he finds Rorschach having broken in and eating a can of beans. They head down to a workshop where a large craft is covered by a tarp. Rorschach informs Dan of The Comedian's murder and Dan is surprised. Rorschach blantantly suggests the possibility of Hollis Mason murdering The Comedian since there was bad blood between them. Dan refutes this. Rorschach tells Dan that he must go and heads off, commenting bitterly on Dan's decision to quit the superhero business. Dan is left to ponder things.

The next day, Rorschach heads to a bar where he confronts the bartender for information. The bartender only pleads with him not to kill anyone. A man makes a smug comment about Rorschach. Rorschach goes over and begins to break the man's fingers one by one, ordering the people in the bar to tell him who killed Edward Blake. No one tells him anything and he leaves.

Rorschach speaks to Adrian Veidt, a wealthy entrepenuer, at his offices. Adrian suggests that it was a political killing which Rorschach denies, implying that other nations are afraid of American due to the presence of Dr. Manhattan, a powerful superbeing. Rorschach is insistant on the notion of a masked killer murdering former superheroes. Adrian still supports the idea of a political murder, calling Blake a "nazi," to which Rorschach replies that Blake was a patriot who stuck to his ideals, indirectly criticizing Adrian and his success. Rorschach leaves.

Later that night, walking through the Rockerfeller Military Research Center, Rorschach reflects on the current state of superheroes, seeing Adrian and Dan as weak and indicitive of America's decline. He breaks into the center and finds Dr. Manhattan and Laurie Juspeczyk working. Rorschach tells them of The Comedian's murder to which Dr. Manhatten responds with apathy while Laurie responds with bitterness: The Comedian tried to rape her mother. Rorschach calls this a "moral lapse," outraging Laurie. Dr. Manhattan forcibly teleports Rorschach away. Afterwards, Laurie tells Dr. Manhattan that she wants to get out of the office for a while and she calls of Dan Dreiberg for dinner.

Rorschach wanders through an alley thinking of all the people who require retribution.

That night, at dinner, Laurie and Dan catch up on their pasts. Laurie is bitter about her life, seeing that she is kept around only to keep Dr. Manhattan stable. She states that the Keene Act was the best thing that could have ever happened.