Promising that he will dine out for a fortnight following the dinner party, thus sparing Mrs. Crupp the labor of cooking for two weeks on behalf of David, David employs Mrs. Crupp to cater a dinner party on behalf of Traddles and the Micawbers.

Prior to the party, David had had a poor appetite, spending most of his time drinking coffee and languishing over Dora. When his guests arrive, David regains his good cheer and appetite.

The party is proceeding along swimmingly when Mrs. Crupp, in partnership with a serving girl whom David has also employed, makes a hash of the mutton: It is not only undercooked but has a good deal of dust smeared on it. Presently, Mr. Micawber takes charge: In due time, the mutton is cleaned, cooked, served, and eaten to everyone’s satisfaction. Indeed, the party is at its high point of cheerfulness when the sudden presence of a stranger in the midst disconcerts the revelers: The stranger is none other than Littimer, Steerforth’s elderly personal servant, in whose presence David invariably feels at a loss. Littimer asks David if Steerforth is present at David’s residence, and when told no, he proceeds to relieve the revelers of their delegated tasks, as meted out by Mr. Micawber, and personally sees to the serving of viands and the clearing of tables before mysteriously departing.

Meanwhile the party proceeds apace. Mrs. Micawber attends to her makeup in David’s room, which David has gone out of his way to set up, replete with “lavender-water, two wax candles, a paper of mixed pins, and a pincushion” on Mrs. Micawber’s behalf, before returning to the parlor for tea. Upon returning to the parlor, Mrs. Micawber turns the conversation, which had revolved around Traddles’ and David’s love interests, to the topic of Mr. Micawber’s considerable talents which society has failed to take advantage of. Indeed, Mrs. Micawber even faults her own family who has categorically refused to back Mr. Micawber’s various entrepreneurial propositions. Subsequently, Mrs. Micawber discloses to David the Micawbers’ latest scheme to liquidate their debts and find gainful employment: They will advertise on the papers, highlighting Mr. Micawber’s superior qualifications. As to the money needed for the advertising, Mrs. Micawber tells David that they will take out a loan.

At party’s end, David manages to pull Traddles aside to warn him of the imprudence of undersigning his name to a loan the Micawbers will try to secure. To David’s dismay, Traddles tells David that he has already undersigned a loan on the Micawbers’ behalf and that the loan Mrs. Micawber spoke of involves yet another cosigner.

David muses about his renewed friendship with the Micawbers when he has an unexpected visitor: It is Steerforth who has come from Yarmouth where he has spent his time sailing his newly bought boat. He has a letter for David from Peggotty. Apparently, Peggotty’s husband Barkis, who is seriously ill, hasn’t much time left before he dies. Subsequently, David tells Steerforth that he’s going to visit Peggotty the first thing tomorrow only to be dissuaded by Steerforth who persuades David to spend a few days at Highgate, Steerforth’s mother’s residence, as there is no telling when he and David would see each other again. Thus, the two old friends part with the promise that David will be at Highgate the day after tomorrow.

Suddenly, upon Steerforth’s departure, David recalls and reads the letter that Mr. Micawber had given him at the party’s end. Therein Mr. Micawber confesses of his financial ruin and of his regret of having involved Traddles in the Micawbers’ financial affairs. David feels sorry for Traddles and of his lady friend who will be forced to wait for who knows how long before Traddles financial status improves to the point that it would allow them to marry.