Twilight Lady was a vice-queen operating in the late-1960's; she was attracted to Nite Owl II at one point in his career. She even had sent him an autograph which he kept as a souvenir.
Twilight Lady was seen in a porn movie of 1977, involving a missing girl, Violet Greene. She had turned an old mansion into a BDSM elite club. When Rorschach and Nite Owl investigated the scene, they found her in the porn tapes and reached her hideout with Owl's hoverbikes.
The customers of the mansion are revealed to include senator and police chief while Greene was there by her own will. Rorschach insisted to fight Twilight Lady to the end, as he claims she is corrupting the youth.
The duo pursues Twilight Lady to the roof and battle her, crushing her on the glass dome atop the mansion's main hall. Rorschach was going to kill her, but was stopped by Nite Owl (who also had some relationships with her in the past) and the two partners started to battle.
The Twilight Lady's fate depends on the result of the conflict in the Watchmen: The End Is Nigh video game.
- If Night Owl wins, Rorschach falls through the glass roof on the same glass roof while Twilight Lady is rescued by Nite Owl. Daniel looks down but sees no traces of Rorschach, indicating that he survived the fall. Twilight Lady then tries to flirt with her savior, but he angrily tosses her aside and shouts at her, still disgusted by her actions, demanding her to leave the city or he will kill her himself. He then leaves, upset by the whole incident.
- If Rorschach wins, he overcomes Daniel and steals his grappling gun. He then shoots the Twilight Lady with it, resulting in her falling down to her death. Daniel falls to his knees, broken, and shouts to Rorschach to leave.
Seeing as Twilight Lady doesn't appear in person in the comic, and thus whether or not she died would have no impact on the story, neither of these endings is considered canonical over the other.
Events of Watchmen
Laurie Juspeczyk while staying with Dreiberg, found Twilight Lady's photograph in his cabinet. Dreiberg felt uneasy and misremembered her name as "Dusk Woman or something" and commented that she was a sick woman.
That night, he saw her in a symbolic dream, indicating that he was also attracted to her. She waited for him in a desert and he ran towards her in agony. They embraced and undressed, and she ripped Dreiberg's skin to uncover the "Nite Owl" underneath. Then he did the same to her, and uncovered Silk Spectre. The two kissed and perished in a nuclear explosion.
Events of Before Watchmen
It is revealed that they did have a relationship both in and out of costume, something which Hollis was against as Nite Owl being involved with her would ruin the image for the children. She later helps Rorschach and Nite Owl find out who has been kidnapping the working girls which later turned out to be the minister. Despite Rorschach obvious dislike for her, he saves her from the minister and offers his hand to pull her up.
She later breaks up with Dreigberg after this incident as she fears that she will be vulnerable if she falls in love. Despite Dreiberg pleas she still leaves him, hoping he will find someone better.