Elena decides that it was a mistake to kiss Damon and that she wants to stop things before they get too complicated. Caroline celebrates her first birthday as a vampire. Elena, Bonnie, and Matt try to get Caroline in the birthday spirit by taking her to the woods to drink. Tyler shows up and begs Caroline to forgive him. He ends up biting Caroline (per Klaus' request). Klaus ends up saving Caroline by feeding her his blood, and he buys her a necklace.
Stefan shows up to Caroline's birthday celebration. He kidnaps Elena and threatens to kill her if Klaus doesn't get all the hybrids out of Mystic Falls, since the hybrids need Elena's blood to keep them alive. Stefan makes her drink his blood then threatens to drive off the bridge where her parents died. Klaus caves, begs Stefan to stop, and says he'll get rid of his hybrids.
Elena runs out of the car, furious with Stefan. He tells her that she stopped loving him the second he left with Klaus. Bonnie says her final good bye to Jeremy. A newcomer to Mystic Falls, Meredith, has a thing for Alaric.