The ball at Lower Loxley goes with a swing. Nigel enjoys playing the host, and compliments Lilian on her dress and mask. However, Lilian turns maudlin when she realises that Matt only has eyes for Annabelle, who has turned up at the party with a mystery man. Matt can't help but try and find out who he is - prompting an irritated Lilian to drown her sorrows.
The party at the Snells goes well, with Jim holding court in the living room and entertaining everyone with his bad jokes. Kathy is finally able to relax and have fun, until Shula lets it slip that she knows her secret. Furious and upset, Kathy accuses Kenton of blabbing, and is not consoled when Kenton points out that it was Elizabeth who blew the secret. Kathy demands to be taken home - much to Lynda's private concern.