Question: Why and how is Laura Palmer killed?
Answer: Why? Because her father was possessed by an evil entity. How? Blunt force trauma.
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Chosen answer: Laura was killed by her father Leland, whilst he was apparently possessed by the spirit BOB. The exact manner of her murder is not clear, as several injuries found during her autopsy we later discover occurred during a separate incident before her murder. We know that she was beaten and killed in an abandoned train car, and her body was then wrapped in plastic and thrown in the river.
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