Another day begins, and the designers are to design a dress that represents 'Envy'. They have a budget of $50 and one day to complete the design. As they finish, the designers are surprised to be told that their dresses will be put for sale in a private auction, with whomever gets the most bids winning the challenge.

The designers can finally design something actually wearable. For this challenge, the designers must create a party dress that could appeal to Banana Republic's customers. The winner, instead of being granted immunity, will have their dress marketed and sold at select Banana Republic stores. They have to pick their fabrics at the studios and have two days to complete their designs.

The designers show their prospective designs to rock singer Sarah Hudson, who picks the three whose designs she liked best: Jay, Kevin, and Austin. Those three are the team leaders and they have to pick two others to be on their team and, as a group, they will work on the group leader's design. Each team had $150 and one day to complete their design.

The designers learn that their selected model will be their client, and they must design a wedding dress of their model's dreams. They have a budget of $300 and two days to complete the design.

The designers create swimsuits that are functional enough to swim in the pool, yet sophisticated enough to wear to an event. They then attend a fashion-industry party with their swimsuit-clad models. The winner will be the designer who receives a mention in the New York Post gossip column "Page Six." The designers have a budget of $75 and 5 hours to complete the design.

As one group, the designers will create a collection, one carrying the theme "the year 2055." One designer is to lead, taking responsibility for the overall vision, while each designer will sketch and create an outfit of his or her own for the line. Each designer has a budget of $50 and one day to complete their look for the collection.

Designers redesigned the uniform worn by United States Postal Service workers. They have a budget of $100 and one day to complete the design.

This week's challenge is to design a dress for the host of Access Hollywood, Nancy O'Dell. Nancy will help judge the runway and wear the winning design on the red carpet at the 2005 Grammy Awards. The designers have $300 and two days to complete the design.

A special reunion episode, the 12 designers all reunite to talk about what happened behind the scenes on Project Runway. When people are confronted and questions are answered, the fabric starts flying.

Tim Gunn visits the final three designers at their homes to show the progress of their collections. Each designer must create a twelve piece collection for a showing at New York Olympus Fashion Week. After months at home to prepare, the final moment has come to show the world their collections.