As morning approaches, the gremlins amass in a movie theater to watch Snow White and the Seven Dwarfs (1937). Billy and Kate (Phoebe Cates) sneak inside the theater, open a gas valve, start a fire, then sneak back out and barricade the door. The theater explodes, killing all the gremlins except for Stripe, who dipped across the street to the department store in order to get more candy. Billy and Kate see Stripe in the window and break into the department store. While Kate (with Gizmo in a backpack) goes looking for light switches, Billy pursues Stripe, knocking over displays and destroying merchandise in the process. Stripe comes after Billy with a chainsaw just as Kate turns on the spotlights, causing Stripe to scamper for cover in the garden department. Unfortunately, in turning on the lights, Kate also turned on a fountain. Stripe jumps in the fountain, and his back begins to bubble with little mogwais. Suddenly, Gizmo comes driving up in a pink toy car, crashes into a wall, and jumps for a cord that opens the shades, letting in the morning sunlight. Stripe is fried before he can hatch more mogwai. Billy and Kate wrap Gizmo in a scarf and take him home. In the final scenes, the Grandfather (Keye Luke) shows up to reclaim Gizmo, informing the Peltzers that they are not ready to take on the responsibility of caring for a mogwai. Gizmo says bye to Billy, and Grandfather adds that Billy MIGHT be ready someday.