Ponyboy, Darry, and Sodapop are waiting in the hospital for news about the condition of Dally and Johnny. While they wait, the police and news reporters arrive to pepper Ponyboy with questions about what happened at the church and the story of the Socs' death. Ponyboy feels bombarded with questions, which prompts Darry to intervene between him and the reporters.

The doctor, after some coaxing, tells the boys Dally will recover from his badly burned arm, but Johnny is another story. The timber, which fell on him, broke his back, he is in shock, and has third-degree burns, the doctor doesn't know if he will survive his injuries, but if he does he will be paralyzed. This news is almost too much for the brothers to take, it is a smack of reality they are unprepared to accept.

The next day at home, Two-Bit and Steve Randle come by to see Ponyboy. They are happy the young teenager is doing well and they show him the newspapers. He is touted as a hero with a headline which reads "Juvenile Delinquents Turn Heroes". Ponyboy reads in the article that he is expected to appear in juvenile court for running away. He also sees Johnny is expected to be in court, if he survives his injuries. But the most astonishing news he sees is people expressing the opinion the brothers should be allowed to stay to together, after all they have done to follow the rules. Ponyboy is upset at the thought of being put in a boys' home. Steve tells him not to worry about it, the authorities would not put heroes in a boys' home.

Just as he is digesting this piece of news, Ponyboy learns Sodapop's girlfriend, Sandy, has been sent to Florida to live with her grandparents. It seems, instead of letting their daughter marry a sixteen-year-old greaser, her parents chose to send her to live with her grandparents. Soda is upset by this turn of events, but he knows now he needs to focus on working his job and trying to help keep his family together.

Darry has to go to work also, but is unsure of leaving Ponyboy home alone, after all he has been through. Two-Bit offers to stay with Ponyboy and takes him to the hospital to visit Dally and Johnny.

The two boys stop by the Tasty Freeze to buy some drinks and see the blue Mustang pull into the parking lot. Randy, Bob's friend, wants to talk to Ponyboy, so the two of them have a private conversation in the car. Randy tells Ponyboy he isn't going to participate in the fight between the Socs and greasers that night. He is upset by the death of Bob and sees the fight as a no win situation for both groups. No matter who wins the fight, the Socs will still have all the advantages in life and the greasers will still be on the bottom of the social and economic ladder in their town.

Randy explains that Bob misbehaved so his parents would tell him no just once, but they never did. He says he is tired of people, like Bob and maybe Johnny, dying. He also tells Ponyboy he never would have saved the kids in the church, but Ponyboy replies he would have if he had been there. By talking about the differences and similarities of Socs and greasers the two young men come to see each other as individuals.

At the hospital the boys are allowed to see Johnny. He is in pain, weak, and can barely talk. They know he is not going to live very much longer. Johnny asks them to get him a copy of Gone with the Wind, so Ponyboy can read it to him. While Two-Bit is out buying the book, Johnny's mother comes to see him, but he denies her entrance to his room. He becomes so upset by the thought of seeing her, he passes out.

Before his mother arrived to see him, Johnny is telling Ponyboy he doesn't want to die. He hasn't seen enough in his sixteen years and he wants a chance to experience life.

As Johnny and Two-Bit leave Johnny's room to go visit Dally, they encounter Johnny's mother. She blames them for her son's injuries, saying she and her husband have gone to a lot of trouble to raise him and he wouldn't be in trouble, if it weren't for his association with the boys. The boys understand why Johnny never wanted to be home at night.

Dally tells Ponyboy he was worried he killed him, when he hit him as he went out the church window. In that moment, Ponyboy, for the first time, feels as if Dally is his friend.

Dally asks Two-Bit for his switchblade and hides it under his pillow. He is also upset to learn Johnny is in bad shape.

On the way back home, Two-Bit discovers Ponyboy is running a fever. Ponyboy makes him promise to keep it a secret from Darry. He also tells Two-Bit he has a bad feeling about the fight between the greasers and the Socs.

At the vacant lot, Cherry Valance is waiting to speak to the boys, she informs them the Socs will follow the greaser rules for the fight. She tells Ponyboy she will not visit Johnny, because he killed her boyfriend. Ponyboy responds by calling her a traitor and saying he doesn't want her charity. She replies she isn't giving him charity, she just wanted to help him because she thinks he is a nice guy.

After rescuing the children, Johnny is close to death, but Dally will survive his injuries. Ponyboy learns his actions might cause the authorities to put him and Sodapop in a boys' home. The experiences of the last week have a profound impact on Ponyboy's view of Socs and greasers.