Designers create a sexy, glamorous outfit for a night on the town made only from materials bought at a Manhattan supermarket.

This week's challenge begins with plain, white cotton. The guiding inspiration for their design is one word: envy.

Our top ten meet up at Banana Republic studios. There, a new challenge is issued: design a holiday dress that fits in with Banana Republic's current collection.

Primed for their next challenge, our nine designers meet Sarah Hudson, a rising rock star ready for a new look, something along the lines of "little girl gone crazy."

Our eight remaining designers have learned to expect the unexpected...which is exactly what they get when Heidi asks them to chose a model before hearing their next challenge.

Last time, the designers went big with a wedding dress. Now they are taken in the opposite direction: swimwear functional enough for the pool.

Heidi arrives to announce the next challenge: as one group, the designers must create a collection.

Heidi gives our five finalists personalized brown paper packages tied up with string -- containing not a few of their favorite things, but the key to their next challenge.

Tim delivers this week's surprise in the form of Nancy O'Dell, host of Access Hollywood and Grammy Awards challenge client.

All of the participating designers gather on the eve of New York Fashion Week at which the final three designers will display their collections.

The final three designers have each created a collection. After they show their final collections, the judges determine who is the next great fashion designer.