The episode starts off with Ms. Patty telling her students the story about how Stars Hallow was founded. Supposedly two lovers from different towns decided to run away and meet each other, but the girl ended up getting lost on the way to find her love. She eventually found him by following a blanket of stars that appeared just as her hope had faded. To celebrate this its founding, Stars Hallow prepares for the the annual Firelight Festival. This just to coincide with Dean and Rory's three-month anniversary.
While the town prepares to honor its origins, Dean prepares a super-romantic evening for Rory. He meets her after school and promises an amazing night if she can manage to get out of the weekly dinner with her grandparents. Rory is unsure she'll be able to do it, but after some begging and pleading from Dean, she agrees to try. At home, she enlists Lorelai, who calls Emily and makes the pitch. Surprisingly, Emily doesn't freak out, rather she gives Rory the night off. Lorelai, however, is still required to attend.
At Chilton, where Tristan is swallowing the tonsils of a random prep-school girl, and the two make out right in front of Paris and Rory's lockers. Paris is pissed, Rory's disgusted, and Tristan just loves rubbing it in both their faces. Over at the Inn, Sookie and Jackson also can't seem to keep their paws off each other either. Even Michel is whispering sweet, French-accented things into the phone to an unknown and unseen paramour. It's enough to make a Lorelai sick, especially because she doesn't have a date for this weekend.
Meanwhile, the town is bustling with people and decorations. Lorelai almost gets knocked out by an oversized, decorative star that falls as she walks underneath it. It puts her in a bad mood, and Luke seconds her emotion. He and Lorelai commiserate and decide to make fun of the next person that says, "Hey how's it going." Of course the next person who walks through the door says those exact words. This leaves Luke speechless because it's Rachel, his ex-girlfriend. There's some idle chit chat until Lorelai is forced to introduce herself and then proceeds to feel totally inadequate because Rachel has just returned from the Mid-east chronicling how the violence has affected Palestinian and Israeli families. Lorelai also has that rambling problem, which is magnified in this uncomfortable situation.
At home, Lorelai is all worked up about meeting Rachel and just hates herself for babbling like a moron. She can't stand that Rachel and Luke were gazing at each other like long lost loves. She admits to Rory that she totally misses Max and with all the excitement going on she hasn't really had time to let the breakup sink in. She even dreamt about Max the other night, but she refuses to dwell and instead helps Rory get ready for her big night.
Later, Lane stops by and complains about her mom's latest set up. Lane's not only meeting a new guy her mom approves of, but seeing his whole family, fourteen future Korean in-laws. Dean arrives and Rory runs off for her super-romantic date. Lorelai heads off to Hartford for dinner alone with the folks. When she gets there, Lorelai finds herself alone with Richard. After stringing several sentences together in a way only Lorelai can, Richard tells her to stop, sit, and not talk. Then to Lorelai's horror, a single, suited man, Chase Bradford, enters the house. He's meant to be a date for Lorelai, but Emily plays it off like a total spontaneous thing.
Lorelai drags Emily out of the room and understands why Emily was so generous and congenial when Rory wanted out of dinner. Emily feels she has done nothing wrong and asks Lorelai to keep an open mind. Emily then says, "Tonight Rory is celebrating her 3-month anniversary. When is the last time you had a relationship that lasted that long?"
At a romantic dinner, Rory is have an absolute perfect time. Dean is nervous, he wants everything to be just right and wants her to have everything she wants. Rory insists that everything is just right and she does have everything she wants. Dean starts talking about phase two of the anniversary dinner.
Back in Hartford, Lorelai's dinner date isn't going so well. Lorelai's wit does not gel with Chase, who's an actuary, a profession that is all numbers, zero thought or creativity. He's even boring Richard, but Emily is eating it all up, laughing at the bad jokes in the hopes that he and Lorelai will hit it off. Chase is digging Lorelai big time, so the only thing for her to do is try and escape. She bails to her room, grabs her coat, starts to sneak out of the balcony and is caught by Richard while she is halfway out the window. He does a un-Richard thing, and lets her leave without saying a word to Emily.
Back with Rory and Dean, he brings her to a salvage yard to present her with his gift. It's the beginning of a car that he plans to build for her. Rory is overwhelmed. She gets behind the wheel, he slips into the passenger seat, and they kiss. Rory states that this moment is so perfect, it just might make her sad because nothing could ever be this good again. Then, Dean puts what he believes is the icing on a very romantic cake. He tells Rory that he loves her. The silence that follows is deafening. There's a look of shock on Rory's face, and Dean is devastated. She says she needs to think about it; but he says, "There's no need to think about it, you either feels it or you don't". Now he feels like a total idiot. Rory tries to explain her point of view, but nothing matters now. Dean just wants to go home.
Back at the festival, Lorelai walks around alone, Sookie and Jackson have a really nice time, and Rachel takes pictures and hangs with Luke. Poor Lane walks around with fourteen Korean people.
Luke demands to know why Rachel is really there. She missed him, simple as that. Rachel wants to know what's going on between him and Lorelai. All Luke says is that they are friends and that's it. And to change the subject, Luke admits that he is really happy to see Rachel, even if he doesn't show it. Rachel goes to grab some punch, giving Lorelai a chance to chit chat with Luke. "So is Rachel staying?" He doesn't know. "Do you want her to?" He doesn't know. But maybe he will to make it work with her. Luke goes to find Rachel, leaving Lorelai alone again.
When she gets home, Lorelai dials Max's number and gets his machine. She doesn't get the chance to leave a message, though, because Rory walks in, tears on her face and announces that she and Dean just broke up.