- It's Christmas time, and the Grandcourts arrive at the Abbey. Daniel wonders about how being married to Grandcourt is going to influence Gwendolen.
- Daniel is worried that Gwendolen only married Grandcourt to escape poverty. The narrator talks about how usually guys feel sorry for the woman in a married couple, while women tend to feel sorry for the man.
- There is a big party who comes to meet the Grandcourts.
- Mr. Vandernoodt and Daniel chat for a bit. Mr. Vandernoodt makes assumptions about Grandcourt. Daniel says he doesn't actually know him that well.
- Gwendolen and Grandcourt show up to the party.
- We find out that the Arrowpoints have finally condoned Catherine's marriage to Klesmer. People at the party offer their opinions about it.
- Gwendolen speaks sort of critically about Klesmer, but then says she deeply respects him. Daniel wonders what he would have thought of Gwendolen if he were meeting her for the first time tonight.
- Gwendolen and Sir Hugo chat. She tells Sir Hugo that she's afraid of Daniel, because just as he cast an "evil eye" on her gambling, she's afraid that he will continue to cast bad luck on everything she does.
- Then Daniel takes a shot at our favorite pastime – playing piano and singing for everyone!
- After that, Gwendolen and Daniel strike up a conversation about music. Then they start talking about their opinions of people.
- That night, Daniel stays up late trying to learn Hebrew, but he can only think about Gwendolen and Grandcourt and wonder about their marriage. He thinks she's made a mistake.
- The next day, Sir Hugo invites Gwendolen and Grandcourt to check out the stables.
- Daniel watches Gwendolen and Grandcourt interact, and he thinks they have a really cold relationship. But, he figures, English people are known for being reserved.
- Gwendolen gets gussied up to go to the stables. She really wants to have a chance to chat with Daniel. He makes her feel weird because he doesn't seem to admire her like other people do; instead, he seems to be her superior.
- Daniel, meanwhile, seems to be ignoring her. This really irritates Gwendolen.
- Gwendolen puts on a happy face and goes for a walk with everyone else. She wonders why Daniel doesn't seem to like her.
- Grandcourt says condescending things about Daniel behind his back.
- Daniel makes small talk with Julia Fenn.
- Gwendolen feels like Daniel is avoiding her. She feels totally miserable.
- She's not just upset about Daniel; she also is overwhelmed by how guilty she feels about Lydia Glasher. We find out that she burned the letter that Lydia sent her with the diamonds. She doesn't feel like she can call herself a good person after marrying Grandcourt in spite of knowing all of his dirty little secrets.
- To make things more complicated, Grandcourt knows all about Lydia and Gwendolen, and he can tell that she's acting weird exactly for that reason. He feels powerful.
- Gwendolen avoids wearing the diamonds. One night, when they're about to have a fancy dinner, Gwendolen dresses up and puts on her emeralds and asks Grandcourt if he likes the way she looks. He says he doesn't and demands that she wear her diamonds.
- They have a power struggle over what kind of jewelry she's supposed to wear. Later, when Grandcourt insists on putting the diamonds on her himself, Gwendolen thinks about how there's really no reason for Lydia to be upset that Gwendolen married this jerk instead of her.
- Gwendolen continues being miserable. She thinks about Daniel a lot and wishes that he could read her thoughts without having to tell him.