Jan from Munich presents us with another fantastical story inspired by the adventures of Baron von Münchhausen — the “Baron of Lies.” Here, the hero rescues himself and his horse from a swamp.

More about the family's history is revealed, and Lilly prepares to go back to the West. When she boards the train, Till gives her a 1989 calendar, which means it won't be long before Lilly can live with them.

Lilly finally makes Katrin talk to her, and Lena tells them about Lilly's mother's escape to the West.

To her great disappointment, Lilly only gets a visitor's pass rather than a visa. She remains optimistic about life in the GDR even as she learns more about the reality of living there.

Kathrin continues to reject Lilly's presence in their home, while Lilly learns that her Uncle Rolf has taken trips to the West without ever contacting her.

Lilly learns that it is because of her mother's escape to West Germany that Lena had to stop teaching school. Katrin, certain that Lilly will be send back to the West, continues to be mean to her.

Lilly and her friend look at old photographs of Lilly's parents. In East Berlin, Lena and Rolf try to figure out how they can help Lilly.

Pascal and Lena discuss how things will move forward. The next morning, Lilly races to the train station, desperately hoping she can stay with her aunt.

Before returning to boarding school, Lilly shows her aunt her mother's house and they spend a few moments together.

After the funeral, Lilly and Lena discuss grief and faith.

Lilly is worried about her future after her mother's death. Lena travels to Berlin.

Lena tries to get out of East Germany to see her dying sister and comfort her niece.

In the final part of the film, Bettina and Jan learn the hard way that many people don't understand or believe in their relationship. However, Andreas still retains positive feelings about Bettina, which gives her some confidence.

Bettina takes Jan to the place where she served her prison sentence. Jan begins to re-consider how he's lived his life both during the GDR and afterwards.

Jan abandons his marriage and moves in with Bettina, but it is not easy to start a new life together.