The Scarecrow, the Woodman, and the Lion are thrilled with their gifts, finding them to be completely effective. After several days, Oz summons Dorothy to say that he has thought of a way to help her return to Kansas. He believes that they can construct a balloon, much like the one that swept him from America in the first place, that could transport them back (Oz has decided that he would also like to return home to America). Dorothy helps him make a balloon out of silk and summons a basket. The residents of the Emerald City gather to watch Oz depart; Oz tells them that he is going to visit a fellow wizard in the sky.

As the balloon fills with air, Dorothy realizes that Toto is missing. She runs to retrieve him but returns too late; the balloon floats away without her. As he drifts away, Oz decrees that the Scarecrow will rule in his absence.

Dorothy is devastated to have missed the opportunity to join Oz in the balloon; she fears that she will never return to Kansas, and she weeps bitterly.