The designers meet their host, Iman, on a glamorous yacht and are given 30 minutes to create an outfit with very limited materials. Later the designers learn the competition has only just begun and they must now each create an innovative look using only the clothes from another competitor’s suitcase.

On a trip to the park, a mass of lost and broken umbrellas is revealed as the challenge fabric. The designers race to choose the best of the broken umbrellas to create a cocktail dress. The twist is that the designers must utilize all of the fabric from the umbrellas they have chosen.

Faced with the challenge of creating a new look for a Bratz doll, the designers go to a party to consult with the "experts": 12-year-old girls!

The designers have to design the season’s must-have item. After a visit to a Winners flagship store, they are split into groups of three and told that they're designing a three-piece look based on a piece that they find at Winners.

The eight remaining designers are challenged to create a performance outfit for Canada’s opera darling Measha Brueggergosman to wear during her upcoming North American tour. The twist is that Maesha is known for only singing barefoot.

The designers are required to pair off into teams of two, which means one of the five previously eliminated contestants gets a second chance. The designers must pick a pair of opposites that will drive their design, but learn later that their two cohesive looks must reflect both day and evening wear.

The remaining designers are asked to create a dress with "hope" as their inspiration. The dresses are bid upon at a charity event hosted by Iman, with the proceeds going towards AIDS research in Africa.

The remaining designers go on a field trip to California to find inspiration in order to create resort fashion, and meet one of their counterparts from the US Project Runway competition.

They are down to the last Challenge before the finale, but one more designer will not make the cut. The competitors are told to design the outfit to be worn by Iman at the finale at Toronto Fashion week.

The three finalists show their collections at L’Oréal Fashion Week in Toronto to determine who will win the first Project Runway Canada.