Miss Peecher questions her pupil, Mary Anne, about Charley Hexam’s sister. Mary Anne tells her where Lizzie lives, and soon Mr. Headstone comes to Miss Peecher’s home. Miss Peecher makes it clear that she knows Mr. Headstone is going to Lizzie’s home, but Mr. Headstone neither confirms nor denies. At Lizzie’s home, Mr. Headstone is quizzed by Jenny Wren until Lizzie arrives. Mr. Headstone tells Lizzie that she should end her relationship with Eugene Wrayburn, but Lizzie does not take his advice. Mr. Headstone says he has something else to tell her, but he cannot bring himself to do so and asks for another interview.

Pleasant Riderhood, the daughter of Gaffer’s former partner, Rogue, is visited by a strange man who wants to know where her father is. He seems to know Rogue’s true nature and his work on the river. Rogue arrives soon to talk with the stranger and sees him holding a knife that he recognizes as belonging to George Radfoot, a sailor friend of his. He demands to know where the stranger got the knife as well as Radfoot’s coat that he is wearing. The stranger tells Rogue that Radfoot is dead. Rogue suspects the stranger of killing Radfoot, but the stranger is vague. The stranger confronts Rogue with the truth about John Harmon’s murder and the innocence of Gaffer Hexam. He says that he will come soon with a statement to that effect for Rogue to sign.

The stranger leaves and looks out over the river. Through internal dialogue, he reveals himself to be Julius Hanford, the man who had come the night of John Harmon’s murder to identify the body. He also reveals himself to be John Rokesmith, the secretary of Mr. Boffin, who has inherited the Harmon fortune. And at last, he is John Harmon himself, the presumed-dead heir of Old Mr. Harmon. John Harmon remembers his arrival in London, unhappy about the conditions of his father’s will. He had befriended George Radfoot, and the two agreed to dress like common sailors and observe Bella Wilfer. On a wet night, Radfoot exchanged clothes with Harmon, who went to a coffee house frequented by Rogue Riderhood, who was looking to murder a sailor and take his money. Riderhood put poison in John Harmon’s coffee, but it did not kill him. He fell into the river but was rescued and taken to a tavern, where he recovered. Soon he learned of the body found in the river. Fearing the worst, he examined the body and saw that it was indeed Radfoot. Over the next few days, he learned that the body was declared to be that of John Harmon. John took the name of Rokesmith and entered his old home, now occupied by the Boffins and Bella. He decides he must learn whether Bella could truly love him. He proposes to her, but she refuses him. John goes home and effectively buries John Harmon for good.