The Gatehouse
- Parsefall tries to distract himself with rehearsal, even though he's really terrified that Grisini will come get them, especially since Parsefall hasn't been able to successfully steal the phoenix-stone.
- One day, he's in his room waiting anxiously for Lizzie Rose to finish ice skating when she barges into the house and tells him that Grisini is there. He tries to act surprised but isn't able to do so … and she realizes that he's known all along. She says that she was walking by the gatehouse when she looked inside and was startled to see Grisini sleeping within. Eek.
- Parsefall admits that he lied to her because Grisini said he'd kill Lizzie Rose if Parsefall told her he was there.
- Parsefall tells Lizzie Rose about how Grisini came into his room and told him to steal the phoenix-stone because he can't steal it himself.
- The children both know by now that the stone is bad for whoever steals it because Clara comes to them in their dreams every night and warns them about it. Good on ya, Clara.
- Then, Parsefall shows Lizzie Rose where he's been hiding away in the Tower Room. She recognizes it as a witch's tower right away and says that Madama must have lied to them in order to get them to come.
- The children decide that they will not be safe there with all of these evil magicians and witches running amok. Parsefall wants to go to London, but Lizzie Rose says they'll expect that, so instead, the children will get on the train and go as far north as they can. Then, they'll find work and put on a puppet show.
- Lizzie Rose says that she will sew bags into their coats to carry their belongings. They will leave that night.