Shorty returns and Granny convinces him to pretend to be Elly's boyfriend to drive Mark away. Mr. Drysdale tells Jed that the idea of him giving millions to the ocean project has made Miss Jane mentally unstable.

Mark finally convinces Granny he's all human, then sets about resigning his Navy commission to pursue oceanography research. Mr. Drysdale creates a diversion to keep Jed from funding Mark's new ambitions.