just walked in the door. This leads Veta to conclude that Harvey is at a bar called Charlie’s.

Scene II of Act II shifts back to the sanitarium. Dr. Sanderson, having been dismissed for mistakenly committing Veta, is packing his belongings. He and Nurse Kelly discuss seeing each other on dates the previous Saturday, hinting at mutual jealousy, though neither openly admits their feelings. Dowd enters and presents Kelly with a bouquet of Dr. Chumley’s prized dahlias. He believes that Kelly and Dr. Sanderson are going to join him for drinks at a bar, and when Wilson enters, Dowd extends the invitation to him as well. Dowd recounts that he had been at the bar with Dr. Chumley earlier, and after a few drinks, the doctor also saw Harvey. Near the end of this scene, Nurse Kelly inquires about Dowd’s life. He delivers a lengthy speech explaining how he and Harvey meet new people while sitting in bars:

Soon, the faces of the other patrons turn toward me and smile. They seem to be saying, "We don’t know your name, Mister, but you’re a lovely fellow." Harvey and I bask in these golden moments. We arrived as strangers, but now we have friends. They come over, sit with us, and share drinks. They talk to us about the significant and terrible things they've done, and the wonderful things they will do. They share their hopes, regrets, loves, and hates—all grand because nobody brings anything small into a bar. Then I introduce them to Harvey, who is bigger and grander than anything they offer me. When they leave, they depart impressed.

As this scene concludes, Dr. Chumley enters, looking nervous as if someone is following him. He heads into his office and closes the door. Shortly after, the door opens and closes again, seemingly by itself.

Act III
Dr. Chumley, last seen locking himself in his office, is now knocking at the sanitarium door. When Wilson answers, Chumley explains that he slipped out of his office window and circled around. He is visibly terrified. Myrtle and Judge Gaffney arrive; she still wants Dowd committed, but the judge has evidence suggesting there might actually be a Harvey. Reading from a notepad, he recounts Veta’s testimony, where she claimed to see Harvey in her kitchen one morning. She shouted, "To hell with you!" and chased him away. Myrtle mentions that Dowd, with Harvey's help, can predict future events, such as the unexpected arrival of a neighbor’s aunt. Nurse Kelly and Dr. Sanderson arrive, acting like a couple in love. Dr. Chumley informs Sanderson that he isn't fired after all. Sanderson then suggests that Dowd should receive shock treatment with an injection of Doctor Chumley’s formula 977.

Upon Dowd's arrival, Dr. Chumley requests a private conversation with him. They delve into a discussion about Harvey's ability to halt time, which prompts the doctor to daydream about escaping to a campground near Akron for two weeks with a mysterious girl who will stroke his head and say, “Poor thing! Oh, you poor, poor thing!”

At Veta's urging, Dowd consents to receiving an injection of formula 977, even though it means he would no longer be able to see Harvey. While Dowd steps into the next room for the injection, the cab driver who brought Veta arrives to collect his fare. Veta cannot locate her change purse and must ask Dowd for money.

The cab driver, noticing Dowd's kindness, comments that he will not be so pleasant after the injection, mentioning that people he transports to the sanitarium are always nice until they are “cured.” Reflecting on this, Veta realizes she does not want Dowd to change and rushes in to stop the injection. Before leaving, her change purse reappears, and she understands that Harvey had hidden it.

The entire family departs, with Elwood P. Dowd pausing briefly to let Harvey catch up with him.