The situation comes to a head with debates about idealism and disappointment, values of the East and the West, and freedom and control. As decisions are made, personal relationships begin to falter.

In the inter-zone train to East Berlin, people listen to the distressing radio reports. At the same time, we get insight into the lives of other people on this August 13, 1961 - the day when the Berlin Wall is erected and begins to separate its residents from the rest of the world.

Elke repairs the radio in the compartment and everyone hears the news: A wall is being built through Berlin and along the state border to seal off the Soviet zone.

The news of the Berlin Wall's construction continues to spread throughout the train. Arthur and Andi finally find what they have been looking for all this time.

As the train makes its way along, a reporter comes to interview Edith Salzmann, a locomotive driver. Through them, we get an impression of the roles and daily life of people in East Germany.

As the train continues its course towards Berlin, the band of musicians perform a song about yearning for freedom, which contrasts with the security checks of East Germans returning from the West.

August 13, 1961: A fateful message reaches the train bound for East Berlin: The construction of the Wall has begun. The passengers now have three and a half hours to decide—home or freedom?

The first segment introduces us to the main characters who, aboard the train from Munich to East Berlin on August 13, 1961, will face a difficult decision: freedom or home.

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.