Dance Floor: Elena and Stefan dance to Matt Nathanson's "All We Are" -- a beautiful song which has been playing for approximately the last 947 scenes. Stefan hopes Damon didn't drive Elena too crazy. She says he was on his best behavior, even apologizing. "He even explained why he is the way he is." When Stefan doesn't take the bait, she dangles some more. "It all goes back to...Katherine." Stefan nods, which doesn't satisfy Elena, so she rubs his arm as she tells him to tell her about Katherine and what happened. Stefan says he doesn't like to talk about it, but Elena says it's only fair considering how much of her drama he's been privy to. Finally, Stefan says, "Um, thank you." Elena comes right out with it. She doesn't know a lot about him and wants him to open up to her. Stefan changes the subject to Damon, who he just knows said something. "He likes to...play games and cause trouble, Elena." Elena's like a dog with a bone and says this isn't about Damon. She just wants to get to know Stefan. When Stefan tells her to let it go and that he doesn't want to talk about it, Elena insists that he tells her something. Stefan tries to point out that Damon has set up this tension. Elena says, "Well, I guess it's working," and storms off. Damon and Stefan lock eyes across the dance floor and we cut to commercial.
Bonnie tries to take the blame for Elena's falling out with Stefan. "I'm a doubt-planter." Elena pooh-poohs this, since she feels terribly for getting in the middle of everything even though she said she wouldn't, and she's ashamed she acted so snotty. Mama Mulva interrupts to inquire as to the whereabouts of the pocket watch. Elena lies that it must still be packed up with her parents' stuff, somewhere. Mulva forces a smile and asks Elena to let her know as soon as she does find it.
Caroline climbs the stairs and finds Damon, who says he's been looking for her. He drags her into a room, and positions her in the doorway, in order to obscure himself from anyone who might walk by. He grabs a small wooden chest off a shelf, opens it and takes out what appears to be an amber pendant, but Damon merely tells Caroline that it's a crystal. When she chides him for stealing, he informs her it used to be his and he's taking it back.