In a taxi on the way to Prom, Dan apologizes for meddling in the Scooby gang's plan to thwart the Ponzi scheme, and Serena changes into her dress in the backseat as they make up.
Lily shows up to Rufus's apartment and apologizes for turning into her mother there for a second. She asks if he was going to propose, and he says he was going to, but he didn't. He says she's unpredictable, and she worries she's doomed to repeat her mother's mistakes. Rufus tells her she can change, but she needs to let it go with CeCe and move on. She tries to kiss him, but he doesn't let her. He says he doesn't know where they stand and he thinks she's still figuring out who she is.
In the 80's: The kids sneak in the bathroom of a house where a party is going on. Carol intends to get the music video from the director, who took their money and then upped his fee, and is now holding the video hostage. Lily keeps being uptight, so Carol and Shep leave her with Owen. Owen accuses her of being lame, so she leads the way to the bar.
At Prom: Blair greets Serena and Dan, who sprung her out of jail. Serena drags Dan to the dance floor, where he hops around like a caffeinated 5 year old...
In the 80's: ...just like Shep is spastically hopping around at the party, as Carol looks around for the music video guy, who turns out to be named Keith van der Woodsen. He tells her he kept the video so she had a reason to call him. He was giving her a special rate on the video because she slept with him until she found out he had a girlfriend. Then she broke things off, and his cost went up. Lily walks up and is all, "No one treats us this way!" but that master plan doesn't work, so Keith calls the cops on the trespassers and a fight breaks out after Keith's girlfriend calls them valley trash. Carol and Shep escape, but Owen and Lily get arrested. After Lily beats a guy over the head with her purse.
At Prom: Blair finds Chuck holding a ton of Nelly Yuki-marked ballots and accuses him of trying to sabotage her Prom. Then Penelope, to her own shock and dismay, announces that Blair and Nate are the Prom royalty. Blair gets on stage, grabs the tiara, and then the mic. Chuck tells Serena and Dan that he was only taking out the NY ballots. He also "lost" her corsage because the dress he bought for her looks better without it. Ever the fairy godmother, he gives Serena the key to the penthouse at the Plaza, and asks her to give it to Blair. He just wanted Blair to have her fairytale Prom, like in the scrapbook. Gossip Girl adds: "Why does it feel like our queen is standing with the wrong king?"
Back in the 80's: Lily calls CeCe from jail, and she's furious. They fight about who gets to make the big girl decisions around here. Hopes and dreams, growing up, et cetera. Lily defends Carol's free spirit attitude, and then Carol grabs the phone and tells their mother Lily will stay with her for a while and hangs up. Carol sold her car to get Lily out, so they ride the bus back to the city.
In the present: Lily catches CeCe on her way out of town and says she loves her. CeCe says Lily has it easy with Serena, and a mother needs to make sure her daughter "fulfills her destiny." Lily forgives CeCe, and they don't exactly agree, but they hug it out, anyway.
At Prom, Blair and Nate are dancing. Blair feels sad, saying she senses something is over--not high school. Their relationship. "Tonight already feels like a memory." She asks him to hold her, and they kiss.
Blair goes out and sits on the steps, and S walks over. Blair tells her she and Nate broke up because he feels like her high school boyfriend. The girls reminisce about high school and how they raised each other through the crazy times like sisters. (Just like Lily and Carol, get it?)
"Shoulder pads may come and go, but BFFs are forever," Gossip Girl says.
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