Trenor's fortunes were negatively impacted by the stock market crash. Lily suspects that the rumors about her flirtation with Trenor may have gotten back to Judy, which may explain the woman's suddenly cold behavior toward her.
The Brys' newly acquired wealth prompts them to throw a large party at their estate with the assistance of Lily and Carry Fisher. Attending the party are Selden and Gerty, both of whom were invited by Lily. Gerty confides to Selden that Lily has donated three hundred dollars to Gerty's philanthropy, her Girls Club, and has convinced the other society women to contribute large amounts as well.
The party features a tableau vivant in which volunteers re-create famous scenes of art or history. Lily is featured as the subject of Sir Joshua Reynolds' Mrs. Lloyd, a depiction of such beauty that it elicits gasps of appreciation from the audience. The painting is known for displaying the voluptuous form of its subject in a transparent gauze gown while she carves her lover's name into a tree. Selden's admiration for Lily's portrait prompts him to think "for the first time he seemed to see before him the real Lily Bart, divested of the trivialities of her little world, and catching for a moment a note of that eternal harmony of which her beauty was a part."
While some in the audience are scandalized by the exposure of Lily's form, Selden is mesmerized. He looks forward to speaking with her for the first time after intentionally avoiding her since the Stepneys' wedding. The two walk outside, and Selden professes his love to her. The couple kisses, and Lily tells Selden to love her "but don't tell me so." She leaves him alone. Selden leaves the party, but not until he hears Trenor and Ned Van Alstyne discussing Lily's attractiveness.
