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The war is over. Saleem and Shaheed are walking around in Dacca. They see even more war atrocities.
Saleem goes looking for a safe place, and finds it in a tea shop. Shaheed is still outside, though, and he gets hit by a bomb that blows off his legs. Saleem takes him up into the minaret and holds him until he dies.
We told you it was going to be sad.
Then the Indian Army comes into Dacca with a triumphant parade. That's when Parvati-the-witch sees Saleem, and reminds him of his name. Yay!
She hides him in her basket of invisibility, where he almost dies. She lets him out just in time for him to be okay.
While he's in the basket, Saleem realizes something. He's angry. People have treated him badly his whole life, and it's not fair. Now it's his turn to choose his destiny.