Toby is giving a puppet show for Monica, their mutual love becomes more obvious. When Baba comes home, she resumes her accusations on Toby, sure that he knows what went on that night. The guests again arrive, expecting another seance but are driven away by Madame Flora who tries to convince them that the whole thing was a sham by revealing all the tricks that she and Monica used. But the guests are not convinced and leave claiming that while she might have thought she was cheating them, she in fact was not. Once the guests are gone, she drives Toby out despite Monica's pleas on his behalf. With everyone gone, and Monica in her room, Baba pours herself another drink and questions her own sanity, becoming wild with drink and eventually passing out. Once she has fallen asleep, Toby sneaks back in and tries to get into Monica's room, but finds it locked and eventually goes to the trunk to find his tambourine. While searching, he knocks the lid of the trunk down waking Baba. Toby quickly hides in the puppet theater. As Baba tries to see where the noise came from and fetches a revolver from a drawer in the table. "Hysterically" she shouts out "Who is it? Speak or I'll Shoot!" and the puppet theater curtain moves. "Baba screams and fires at it several times." As Toby's bloody body collapses grasping the curtain, Baba says "I've killed the ghost! I've killed the ghost!" Monica, hearing the gunshots, enters, sees Toby's lifeless body and runs for help. As the final curtain falls "very slowly" Baba asks "in a hoarse whisper," "Was it you?"