The designers were taken to the Los Angeles Times, and were challenged to create an unconventional outfit made out of newspaper. Irina won the challenge and Johnny was eliminated. Guest Judges: Tommy Hilfiger and Eva Longoria Parker.

The designers were challenged to work in pairs to create 2 blue garments for the Macy's, Inc. line. The winner of this challenge would not receive immunity, but would instead, make a holiday dress to be sold in select Macy's stores nationwide and on Macy's.com. Guest Judges: Zanna Roberts and Martine Reardon.