The angels show Clarence a grown-up George Bailey buying a suitcase, which he plans to use when he finally gets to travel the world. The salesman gives it to him for free; Mr. Gower has already paid for it as a gift.
He stops by the drugstore to thank Gower and takes a cab home.
He sees Violet on the street and compliments her on her looks.
At the Bailey household, George and Harry horse around before dinner. They seem happy. George is about to move out and travel to Europe.
His father complains about Mr. Potter's interference with the Building and Loan, and Harry invites George to a dance.
Mr. Bailey asks George whether he wants to take over the Building and Loan, but George isn't interested. He says he wants to do something big and important. No offense.
His father thinks that helping families buy homes of their own is pretty important, but he understands George's wish to see the world. What a good dad.
At the dance, George chats with some other guys. He runs into Violet, but Mary Hatch's brother comes up and asks George to dance with Mary.
Mary ditches her boring date to go dance with George, and they hit it off big time.
Mary's date isn't happy; he pushes a button that makes the dance floor slide back, causing George and Mary to fall into the swimming pool below. Other partygoers start diving in, too.
As George and Mary walk home, they sing the song "Buffalo Gals" together. Now out of their wet clothes, George is wearing someone's football uniform, while Mary is wearing a bathrobe.
George say he's going to throw a rock at an abandoned house across the street and make a wish.
Mary tells him not to since it's a romantic old ruin. He does it anyway, making a wish to leave Bedford Falls and see the world.
Mary throws a rock and breaks a window, but she won't tell George what she wished for.
George asks her about her wish and says if she wants the moon, he'll lasso it and drag it down for her. A neighbor on a porch yells at him to "just kiss her" already.
George yells at the neighbor. Mary darts away, but her robe falls off, and she hides in a bush. George picks up the robe and pretends he won't give it back.
In the middle of this playful scene, George's Uncle Billy drives up and tells him his father has just had a stroke.
George tosses the robe back to Mary, apologizes, and drives off with Billy.