Fanny and Michelle prepare for The Nutcracker performance. Sasha is back in Fanny's good graces and is cast as the lead. But before Sasha returned, Fanny called in The Ringer, an amazingly talented dancer with a bit of a mean side. Sasha is informed she's still Clara - but it's her job to inform The Ringer. When she does, the new girl is none-to-thrilled. She assures Sasha that she WILL be playing Clara.
Meanwhile, the girls are in a fight over Ginny dating Melanie's brother but come to a truce once Michelle gets involved. And Michelle organizes a successful fundraiser for the Dance School at the Oyster Bar. At the event, Boo publicly apologizes to Carl and they make up.
During the performance of The Nutcracker, Michelle intends to hair spray the dancers to keep their stage makeup from getting ruined but accidentally sprays them with mace causing havoc with the show. Everyone is rushed to the hospital to tend to their eye injuries. And while there, in a dream, Michelle sees Hubbell and he tells her she has made a difference for the better. But outside of her room, she hears the parents of the dancers demand that Michelle is no longer a part of the dance school due to the recent incidents. Michelle decides it's best to leave - and as she leaves the bunheads show their support.