It's time for the annual Ouran Fair, a chance for the school's clubs to showcase student leadership skills and a talent for upward mobility. The Host Club has won the honor of using the Main Salon to entertain their visitors and they manage to charm every one of them, except for a mysterious diva who watches everything through opera glasses. Tamaki's father, Yuzuru Suoh, meets Haruhi for the first time and Haruhi notes that while they don't look alike, they share a flair for flirting. Yoshio Ootori, Kyoya's father, slaps him for wasting his time on such a frivolous club. Haruhi defends Kyoya, but begins to see the down-side of wealth. Her education in this regard is furthered when Tamaki's grandmother, Shizue Suoh, arrives. She is curt and dismissive to Tamaki, but introduces him to the Lady Éclair, the mysterious diva who his grandmother commands he chaperone. Éclair is revealed to be wealthy and powerful, but also haughty and selfish. Tamaki ends up engaged to Éclair on his grandmother’s orders and the Host Club is declared dissolved as of the end of the festival, at which point Tamaki will leave Japan with Éclair. Haruhi also learns of Tamaki's mother, who was his father’s mistress and not his wife, and how Tamaki's entrance into the prestigious Suoh family was conditional on Tamaki never being allowed to see his mother again.
This episode provides examples of:
- Chick Magnet: A quick shot at the start of the episode shows Kasanoda surrounded by several female admirers.
- Cliffhanger: Tamaki announces his engagement to Éclair and that the host club will dissolve after the festival ends.
- Mood Whiplash: The episode goes from being the same wacky schtick with the host club to Kyoya suddenly being slapped by his father.
