The 14 hopefuls all meet up in New York and are given their first assignment: Innovation. Taken to a place where they are said to get their materials, the designers are shocked to see it is a grocery store.

Another day begins, and the designers are to design a dress that represents 'Envy' using cotton.

The designers finally get to design something wearable. For this challenge, the designers must create a party dress that could appeal to Banana Republic's customers.

Rock singer Sarah Hudson makes a special appearance. All of the designers show their prospective Rock N' Roll designs and Sarah picks the three designs she liked best. The chosen designers become team leaders to form groups that will work on the leader's design.

The designers learn that their selected model will be their client, and they must design a wedding dress of their model's dreams.

The designers are challenged to design swimsuits that are functional enough to swim in the pool, yet sophisticated enough to wear to a fashion-industry party.

As one group, the designers will create a collection, one carrying the theme "the year 2055”. One designer is to lead, taking responsibility for the overall vision, while each designer will sketch and create an outfit of his or her own for the line.

Instead of another assignment, Heidi gives the five finalists each brown paper packages containing the key to their next challenge, which they are not allowed to open until the next morning.

This week's challenge is to design a dress for the host of Access Hollywood, Nancy O’Dell. Nancy will help judge the runway and wear the winning design on the red carpet at the 2005 Grammy Awards.

A special reunion episode, the 12 designers all reunite to talk about what happened behind the scenes on Project Runway. When people are confronted and questions are answered, the fabric starts flying.

After months at home to prepare the final moment has come. The final three have their shot to show the world their collections. While the audience watches the models strut their stuff on the runway.