Rory and Lorelai prepare for their backpacking trip around Europe by getting used to complaining about their backpacks and how much their feet hurt. Luke and Nicole are planning their own vacation, driving around Canada and taking an Alaskan cruise, until Lorelai tells Luke that such a trip spells commitment to a woman. Then he starts second guessing the idea. At one point he even dreams of Lorelai coming to the diner and asking him not to get engaged while he's away.
The Independence Inn closes down, and Lorelai tells Sookie that she won't be able to buy the Dragonfly Inn because her money has to pay for Rory's tuition. When Rory finds out, she heads to the grandparents for a better financing plan and they agree to a long-term loan with the reinstatement of Friday dinners (a committment that doesn't include Lorelai}. Lorelai's not happy to hear this because she's convinced her parents will manipulate the situation to their advantage. She is happy when she and Sookie get the Dragonfly.
Lorelai, Emily, Richard, Sookie, Jackson, and Luke all come to Rory's graduation. Christopher was too busy to come. In her valedictory speech, Rory thanks her grandparents for their role in her life and praises Lorelai for being such a wonderful mother, friend, and role model. Her speech makes everyone cry. Later, Rory and Paris share a friendly farewell hug and Richard and Emily give their granddaughter a car.
Rory's cell keeps ringing throughout graduation. She suspects that it's Jess calling her. When he calls again but doesn't speak, she tells him that he made the wrong decision by leaving her, not going to her graduation, and not telling her that he was failing and couldn't graduate. Rory admits that she loved him but says she has to move on, fighting back tears as she ends the call. Lorelai then finds Rory and, after a last look at Chilton, the Gilmore girls head out to celebrate with their friends.