The Narrator narrates as Melissa and Josh head to the bridge. They find their car, still completely broken down. They decide to walk.

As they head off, the Narrator asks them why they are leaving since they were having such fun. Melissa tells him that Schmigadoon was fun, but Schmicago is not.

The Narrator notes that Melissa looked like she was having fun performing and doing detective work. Melissa and Josh storm off, heading through the mist on the bridge, and end up walking back into Schmicago.

Melissa begs the Narrator to tell them what they need to do. He tells them they need to figure it out for themselves.

Josh and Melissa realize that since everyone is miserable here, they need to ensure everyone gets a happy ending, but they are daunted by the task.

Back in Melissa and Jenny's apartment, they try to figure out what to do. They contemplate their life choices and wonder how it all got so hard.

Melissa thinks the key to everyone's happiness will be to reunite Dooley Blight and Jenny, his daughter. Josh suggests that they may need to kill baby Hitler.

Jenny enters, asking for a cigarette, but Josh and Melissa are cigarette-less. Josh urges Melissa to talk to Jenny about her father.

Melissa goes over to Jenny and tells her she ran into her father. Jenny says she has no father; he killed her mother and left her in an orphanage.

Melissa is sympathetic but suggests that her father is innocent. Jenny tells her to drop it -- as far as she's concerned, her father is dead.

Josh suggests taking Jenny somewhere fabulous -- the hippie commune.

The hippie tribe welcomes Jenny warmly. Topher greets the prodigal son, Josh, and his "old lady," Melissa. Topher introduces himself to Jenny and calls a tribe meeting.

At the tribe meeting, Topher suggests a parable and asks for a prompt. Josh suggests "Father."

Topher starts to talk about God, but Melissa interjects, suggesting it's about a normal father. Topher begins the parable about a father and son, and Josh interrupts, suggesting it be a daughter.

Topher starts to get irritated. Josh and Melissa keep interrupting. Topher tells them they should do it and storms off.

Josh gets in front of the whole tribe. He starts to tell the story, and some music kicks in!

Josh sings about a girl who gets letters from her father but never answers them, but then her father dies. Melissa joins in. Josh and Melissa use the musical number to try to convince Jenny to talk to her father.

At the end, the hippies disperse, many wanting to call their own fathers. Jenny is moved to speak with Topher, who is angry, in his tent.

The Narrator informs us that Josh and Melissa are failing and we should spend time with Jenny and Topher instead. He makes it night.

Jenny joins Topher in his tent. They discuss their lives, wondering who they are, if they are phonies, and who they are pretending to be.

Despite having just met, Jenny confides that she feels she can be herself around Topher, and he tells her he feels the same. They sing a tender duet expressing their feelings for one another. They kiss.

Josh and Melissa watch the shadows kiss. They congratulate each other for making it happen. They discuss what to do further. Melissa suggests getting Dooley and Miss Codwell together to distract Dooley from the whole homicidal revenge thing.

First thing in the morning, Melissa and Josh visit Dooley Blight in his butcher shop.

Blight asks about Jenny. Melissa and Josh suggest getting out there and going out with Miss Codwell, who is interested in him romantically. Blight is dubious, but they encourage him.

Melissa and Josh take Blight and Miss Codwell out for dinner. Blight has brought his cleaver. Miss Codwell remarks on how big and shiny it is. Melissa asks Miss Codwell about her day, and she complains about the orphans.

Blight backs Miss Codwell up, and she's clearly into him. They eat their food. Miss Codwell cleaves Blight's sausage for him.

After dinner, they walk ahead, and Miss Codwell takes Blight's arm. Josh and Melissa follow at a respectable distance behind them.

Josh and Melissa kiss, pleased with how things have gone.

At the orphanage, Miss Codwell thanks Blight for lending her his cleaver, and he tells her she can keep it. She offers him a nightcap, and after some initial reluctance, he goes in with her.

Orphans serve drinks to Miss Codwell and Blight. Blight complains about meat prices. Miss Codwell complains about the orphans.

They think about solving their mutual problem by using the orphans as meat and sing a song about it, complete with rhyming puns. The orphans do a rousing tap-dancing number with Miss Codwell.

Josh and Melissa watch from the window, thinking it's just all fun and dancing, assuming they did a good thing. The Narrator rolls his eyes with some trepidation at this turn of events.