Back in the US, Peter has gone solo and comes to terms with his bisexuality ("Bi-Coastal"). He meets the hardworking fashion model Gregory Connell. Greg does not want to be a part of Peter's life in show business, but he falls in love with Peter ("If You Were Wondering"). They soon get discovered by music producer Dee Anthony, and he gets them a gig at the Copacabana in New York ("Sure Thing Baby"). Peter's career takes off, and he wins an Oscar for "Arthur's Theme", in addition to writing songs that were covered by artists Olivia Newton-John and Frank Sinatra. Peter gives his best performance in the Radio City Music Hall with The Rockettes ("Everything Old is New Again"), and is surprised to know his mother is also in love.
