Written by Chris Lilley
Directed by Chris Lilley, Stuart McDonald and Jeffrey Walker
S.mouse has gone back to calling himself by his real name, Shwayne Jr. He's given out his new single to the radio stations and record companies and is waiting to hear back. At his father's insistence, he leaves home and moves back into his own mansion. Cruising around town with Danthony eventually gets boring, and Shwayne Sr. suggests he get a real job. While horsing around with Danthony, he hears the opening chords to his new song "Squashed N***a" on the radio and celebrates.
Blake's life has turned around for the better. At the trial for Packo's shooting, Ashley admits that Blake had nothing to do with it, and the surfer is cleared of all charges. Blake has the surgery to restore his balls, which has given him newfound confidence. He reopens the Fat Boy surfing school and enlists the Mucca Mad Boys as instructors. Kareena's come back to him, along with their new son Tyrone, who's already received honorary Mad Boy status. A confident Blake surfs the formidable Mucca Bay waves known as "Blakeys" as he prepares to join the Billabong Legends of Surfing tour.
Tim has moved back to Santa Barbara along with his new manager. He has a long distance relationship with his girlfriend, but he still manages to see her. Most important to him, he's skating more than he ever has. Jen has refused to see him since the court ruled that the money made from his image actually belongs to him. He bought her a house, which she's filled with leftover Gay Style merchandise. She complains about Tim as she acts as a stay-at-home mom to her other kids, including his younger brother Luke, who she is training to become a professional golfer.
Gran moves in with Daniel's family and fits in quite well. She Skypes with Penny, who misses her dearly. Gran feels terrible that she forgot to invite the Legends to Nathan's party, but Daniel tries not to make it an issue. He and Nathan drive through town one last time, and stop by the tree where their father was killed. Daniel speaks to him, and tells his dad that he and Nathan will run the farm when he's back from deaf school, and both of them are men. Nathan leaves a photo, offers a silent prayer, and then expresses himself by peeing on the tree. The farewell party gets off to a slow start, but as Nathan goes to retrieve a lighter, he notices a few cars pulling up in the driveway. Blake Oakfield, Tim Okazaki and S.mouse all come out, as Nathan and his family look on in amazement.