The Emcee sings "Over and Done." Melissa waits to be married to Kratt while Josh is tied up and in prison.

Bobby has the restrained Melissa sign divorce papers, marriage license, and pre-nuptial agreement, with the caveat that Melissa provides Kratt with a male heir.

Melissa asks Bobby how she can be okay with this -- Kratt is holding Josh hostage. Bobby tells her that Kratt has paid her, so he has attorney-client privilege. Kratt shows up, and Bobby informs him that everything is legally binding. Kratt pays Bobby, and she leaves.

Melissa asks Kratt where Josh is. Kratt says Josh will remain unharmed as long as Melissa goes through with the marriage. Kratt starts a musical number, but Melissa shuts him down.

He says he just wants someone to love him, but Melissa insists she only loves Josh. Kratt tells her the wedding is in one hour and leaves.

Melissa begs Madame Frau to help her. Frau is sympathetic but urges Melissa to go along with it and try to be happy.

Meanwhile, Josh, tied up, tries to convince Sgt. Rivera that it's all been a misunderstanding and begs to be let go.

Sgt. Rivera refuses, saying Josh and his hippie friends have it easy while people like him have to do all the work. Josh asks him what's stopping him from living the life he wants.

The phone rings. It's Kratt telling Sgt. Rivera to kill Josh after the wedding. Sgt. Rivera agrees if Kratt promises to give Rivera his own act at the club. Kratt tells him to kill Josh and hangs up. Sgt. Rivera pulls his gun. Josh protests, saying it's not worth it.

On the fly, he comes up with "The Parable of the Faithful Servant," in which a master kept asking a servant to do bad things, and the servant kept doing them with the hope that he would inherit his master's riches when the master died.

But when the master died, he left everything to his wife and nothing for the servant.

Sgt. Rivera is moved but shakes it off. Josh tries another parable.

Miss Codwell feeds her orphans. Dooley Blight bursts in, demanding an orphan. He's angry that Kratt has eluded him, and he's bloodthirsty.

Miss Codwell tries to calm him. He questions her devotion to him. She kisses him. They head upstairs to the bedroom, and he uses his cleaver to slice off her dress.

After, the orphans knock on the door, asking if she's alright. Blight and Codwell assure the orphans they are fine.

Blight mentions that he saw Sgt. Rivera taking Josh away, and they need to help him. Blight suspects that Josh is being held in the basement of Kratt's power plant -- the same place Rivera took Blight for questioning all those years ago.

Jenny and Topher lie in bed together. Topher wonders if he can learn more about making love, and Jenny assures him that she will teach him.

There is a knock at the door, and the tribe bursts in. Marisa, Michael, and Alex get them up to speed -- Josh has been taken hostage by Rivera so that Melissa will be forced to marry Kratt. Jenny and Topher agree to help.

Josh recounts the story of The Goonies as a parable. Topher and the tribe come to the rescue, and Topher and Josh patch things up.

Rivera pulls his gun on Jenny, and she puts a flower in it.

Blight and Codwell burst in, and Blight tells Rivera he has come for revenge for his beloved Daisy. Jenny recognizes the name Daisy as her mother's, and Blight announces he is her father. He insists he never harmed Daisy. Jenny doesn't believe him and shuns him.

Blight lifts his cleaver, but Rivera stops him, saying he's the one who framed Blight -- Kratt killed Daisy. Jenny and her father hug tearfully. Josh enlists everyone to help him stop the wedding.

At the wedding, the Narrator is presiding. Kratt and Melissa make their vows.

Josh bursts in just in time. Kratt orders the police to seize the intruders, but Sgt. Rivera stops them, saying he is standing up to Kratt, and Madame Frau stands by him.

Kratt explains the police work for him, not Rivera, and orders them again to take Josh and the others away, which they do.

Josh and Melissa declare their love as Josh is dragged away. The Narrator is about to pronounce Kratt and Melissa husband and wife, but Blight bursts in, crying for vengeance.

Blight trips and loses his cleaver, which only lands on Kratt's suit-tails. Police grab Blight, and Kratt orders the Narrator to finish the ceremony, with Melissa at gunpoint.

Bobby tries to intervene, but Kratt points the gun at her, and she quickly sits.

Someone cuts the rope holding up the chandelier. Josh cries out for them to "Look up!"

Melissa and the Narrator see the chandelier and run out of harm's way. Kratt is pinned to the stage by Dooley's cleaver and cannot escape. The chandelier falls, crushing and electrocuting Kratt.

Miss Codwell appears, revealing that she cut the rope with the cleaver Blight gave her. Blight runs to Codwell.

Josh runs to Melissa. They express their love, and kiss. Madame Frau asks if Kratt is dead. Melissa checks Kratt's pulse, and she and Josh announce his death, leading a reprise of "Kaput!"

The Narrator tells us how things will be different in Schmicago from now on -- Madame Frau will take over the club, promoting new acts, like Rivera's Frank-N-Furter-style burlesque.

The hippies get jobs with Bobby as she splits up Kratt's monopolies. Jenny and Topher run the orphanage. Codwell and Dooley Blight team up to run a bakery.

The Narrator explains that Josh and Melissa have a happy ending, so they are free to leave Schmicago, but why would they? Life is better here. They felt that they had learned something when they left Schmigadoon, but they still came back in search of it.

The ensemble pleads with Josh and Melissa to stay in Schmicago, where all their dreams can come true.

Melissa and Josh tearily consider what they want -- something real. They decide to forego the magic.

The leprechaun appears. He tells Josh and Melissa that they passed the test. Everyone is smiling.

The Narrator says he doesn't want to do the Narrator gig anymore, helping others figure out their life. He wants his own life, and romance -- with Rivera. Rivera is down for it.

A new narrator steps in and narrates about the former Narrator.

The leprechaun tells Josh and Melissa they are free to go.

Another leprechaun appears in a flash of green. It's the Schmigadoon leprechaun, Oscar (brother to the Schmicago leprechaun, Stephen). Together, they sing that happy endings don't exist, but every day can be a happy beginning.

The leprechauns disappear. The Schmicago ensemble, even the orphans, take up the song. Content in their decision, Melissa and Josh cross the bridge of Schmicago as the citizens wave goodbye.

Josh and Melissa return to New York, where they discover Melissa is pregnant.