Gatsby has fired all of his servants and replaced them with associates of Wolfshiem. Gatsby was concerned that the old servants were gossiping in town about Daisy's visits to his mansion. The new servants may not actually be servants. They are rude, and the house is in disarray. Nick thought, initially that Gatsby had moved away.

Gatsby calls Nick to invite him to Daisy's house for lunch. Jordan Baker and Gatsby will be there, as well as Daisy and Tom. Nick agrees.

The day of the lunch is the hottest day of summer. Everyone moves slowly. Gatsby arrives at Daisy's to the sound of the phone ringing and Tom talking to who is obviously Myrtle. Daisy and Jordan are stretched out on the sofa, both dressed in white. Tom claims the phone call was a business deal and Nick, inexplicably, confirms this as fact.

After making conversation about the terrible heat, and briefly introducing her daughter to the group, Daisy proposes that they all go into town, meaning that they should go to Manhattan. After she makes the suggestion, she exchanges a few words with Gatsby, and Tom, watching the couple, realizes they are having an affair. Tom becomes angry, but hides it by agreeing that they should all go to New York. Gatsby and Daisy drive Tom's car. Tom, Nick, and Jordan take Gatsby's bright yellow car.

On the way to New York Tom stops at Wilson's garage with Gatsby's car. Wilson presses him again to sell him a car, adding that he needs the money because he and his wife, Tom's mistress, Myrtle, are moving away. This information upsets Tom. As Tom is talking to George, Myrtle watches from the window. She sees Jordan waiting in the car and assumes Jordan is Daisy, which makes her angry and jealous.

Finally everyone arrives at the suite they've taken at the Plaza Hotel in New York. Tom begins challenging Gatsby. First he suggests that Gatsby has lied about attending Oxford. Gatsby successfully defends himself. Tom then asks Gatsby what is going on between him and Daisy. Gatsby replies that Daisy loves him, has never loved Tom, and that she plans to leave Tom and marry Gatsby. Daisy, however, refuses to confirm that she never loved Tom. Tom, buoyed by Daisy's uncertainty, tells Gatsby that Daisy would never leave him for a "bootlegger." The party breaks up and heads home. Daisy and Gatsby leave in Gatsby's car. Tom, Jordan, and Nick follow in Tom's car.

As Gatsby and Daisy drive by Wilson's garage, Myrtle runs out to the car. Daisy and Gatsby do not stop. Tom, Jordan, and Nick come on the scene next, and stop to see what is going on. Tom is distraught to learn that Myrtle has been killed, and when George describes the yellow car, he is certain Gatsby has killed her.

When everyone returns to Tom and Daisy's house, Nick waits outside for a cab, and talks to Gatsby, who tells him that it was Daisy, not he, who was driving. Nick leaves Gatsby outside of the Buchanan's house, where he is standing by, in case Daisy needs him.