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Layla meets up with Warren Peace at the restaurant, and eventually the two end up forming a sort of alliance, designed to get back at Will and make him jealous of them as a 'couple'.Gwen meets the Strongholds and invites them to be the recipients of the very first Hero of the Year Award, which will be presented at the Sky High Homecoming Dance.The Commander tells Will about how the Pacifier was taken from an arch-enemy supervillain named Royal Pain, but little else is mentioned of Royal Pain's demise or the Pacifier's powers.
Gwen also uses the party as an opportunity to tell Layla what Will 'really' thinks of her, and Layla leaves the party in tears.Will has an enormous crush on her, dating back to the day they first met, and the two develop a relationship.As he proves his powers, he begins to grow more and more distant from his friends, including Layla, and eventually ends up standing her up for a dinner appointment in favor of hanging out with Gwen.Jetstream goes to him, only to find a crying infant under the clothes. However, his heroic moment is cut short when he is hit by the Pacifier's ray and begins shrinking into a baby. Medulla obliviously re-enters the Gym and is consequently turned into a baby, as well.
Jetstream takes off toward Royal Pain but is also zapped. The students begin panicing while the now diapered heroes sit on the ground, helpless.
Will, when he hears what Gwen has done, breaks up with her the night before the dance, forces everyone out of the house just as his parents arrive.