An anonymous Gossip Girl blast starts a very damaging rumor about one of Columbia's new students, Serena. On her path to greatness, Blair decides to take a class with a powerful businesswoman, Martha, who is guest-lecturing at Columbia, but a mysterious fellow student thwarts her plans to secure the prized position as Martha's assistant.

Blair is caught off-guard – and not in a good way – by a surprise guest at her birthday party. Having had enough of Chuck and Blair’s games, Serena and Nate decide to plan an intervention.

Chuck and Blair decide it’s in both their best interests to put the past behind them and end their vindictive games. Nate confronts Juliet after discovering a secret she has been keeping from everyone. Dan and Nate realize they both still have feelings for Serena.

Chuck hosts a "Saints and Sinners" masquerade party at the Empire Hotel. At the party, Dan and Nate don't know what to make of Serena's strange behavior and mixed messages. Blair sets her sights on becoming the new face of Anne Archibald's foundation for girls, but Anne is concerned that Blair's friendship with Chuck Bass may be problematic.