Jenny and Dan wake up from the events of last night where Jenny mocks Dan for doing "the wave". Dan figures that he should explain to Serena what "the wave" meant, while Jenny goes to Blair for help with Chuck. Serena on the other hand thought that Dan hated her when he did "the wave" and goes to Blair's place to ask what the staredown meant at the party. Blair for her part does not want anything to do with Serena, and hopes she doesn't show up at Chuck's father Bart's annual brunch.
After telling Serena that she knows what transpired between her and Nate the night Serena left, Blair orders Serena to leave her and her group alone. Meanwhile, at the Palace, Nate and Dan encounter each other waiting for Serena. Chuck sees Dan and it almost comes to blows; Nate restrains Chuck and leads him off to Bart's brunch.
At the Waldorf penthouse, Jenny confides to Blair about Chuck, and the junior assures her that Chuck hasn't said anything yet. Jenny then helps Blair dress up for the brunch, and as a reward, Blair gives her one of her mother Eleanor's old dresses. Meanwhile, Rufus meets Lily in Brooklyn, and tells her that Dan "might be the guy Serena needs."
Dan and Serena meet outside the Palace, and after explaining about "the wave," he invites her to eat, just as Lily arrives and orders Serena to proceed to the brunch.
Dragging Dan along, Serena goes to the brunch, infuriating Blair with her presence. Nate surreptitiously gives Serena a key to Chuck's suite so that the two can talk out from under the watchful eyes of Blair; Chuck gives Blair an identical key, telling her to grab Nate and "seal the deal." Blair and Nate, already in action, tumble into the suite only to be greeted by Serena. Blair flips out, and runs to find Dan to tell him about Serena's past. Meanwhile, as Dan steps outside, he sees Lily and Bart discussing their relationship; Lily catches sight of Dan and admonishes him, demanding that he tell no one what he overhead.