When the goblins initiate their revolt, Toby's attempts to control them with force falls apart when Mizumi cancels the contract she made with Jareth. Realizing that he has never been able to make decisions of his own since becoming the Goblin King, Toby relinquishes his role as king and ends the revolt with the goblins as his friends. Meanwhile, Sarah has completed her new world with Jareth nearly able to control her. However, Moppet arrives and confronts him with his attempts to cage her and risking the entire Labyrinth for his own desire, forcing Jareth to justify rescuing Sarah's abandoned dying dreams. After Sarah orders that Jareth show her the fates of her friends, she offers her will to Jareth to save the Labyrinth and frees Moppet from their connection by realizing her own dreams. Jareth is able to repair the Labyrinth and reluctantly accepts Toby's demand to allow everyone to find their own paths.