Written by Chris Lilley
Directed by Chris Lilley, Stuart McDonald and Jeffrey Walker
S.mouse prepares for his album launch party. He performs the new material in front of a small, uncaring audience. He expresses his doubts about himself to Danthony--"Maybe 'The Real Me' isn't the real me," he muses. Looking for inspiration, he returns to the email Daniel sent him about the Aborigine boy who'd been struck by a truck. Feeling inspired, S.mouse composes a song, "Squashed N***a." But instead of rapping it, he sings it, even though as both Danthony and his dad remind him, he used to say "singing is for homosexuals."
Tim and Jen are not speaking to each other, since Tim told her about his new girlfriend. Jen follows her son around and harangues his girlfriend, calling her "slut" and even trying to spit on her. She runs away and tells Tim she'll kill herself if he doesn't say he's gay and leave his girlfriend. Instead, Tim tells her that he wants to go back to skateboarding, and that he's received legal advice telling him he can cut her off and keep the money that was made using his image. Jen breaks down in tears and tells her son that everything she's done, she's done for his sake. When Tim refuses to back down from firing her, she gives up that tactic and tells Tim she's going to "f**k him hard."
Gran's Alzheimer's has progressed, and the prison is forced to let her go for the sake of the boys. She accepts the news that she'll have to leave the house and Penny. On her last day, she says goodbye to Talib and manages to coax a reply from him. The boys throw Gran a surprise goodbye party and present her with a new guinea pig. Moved, she tells the boys that no matter how many people tell them they're worthless, they should always believe in themselves.
In Dunt, Daniel is preparing for Nathan's farewell party as his brother learns sign language. Daniel's mom and Steve tell him that there's no way the legends are coming to Dunt, but Daniel believes they are because Gran said so. In a Skype chat, Gran tells Daniel about her Alzheimer's, that she's leaving the prison and moving in with them. She also reveals that she doesn't think she invited the legends to the party, and he's heartbroken.