When Joe awakes the following morning, he is surprised to see that all his things have been moved from his old apartment. Although outraged, he has no choice but to accept the move, since he has no money and Norma has paid for his overdue rent. He virtually becomes trapped in the house, with only Norma and Max for company. He tries to work on the script, but Norma watches over him like a hawk, afraid that he might damage her precious baby. Anything he deletes, she insists he put back in.

There are only two forms of entertainment at the house: watching Norma's old silent pictures or watching Norma play bridge with other stars of yesteryear: Buster Keaton, H.B. Warner and Anna Q. Nilsson. Eventually, the collectors find his car, and tow it away. He accepts his fate of being trapped at 10086 Sunset Boulevard. When the rains come, he moves into the "husband's room" of the main house, and learns that Max has been writing Norma the fan letters she believes are authentic. Norma begins buying Joe new clothes and expensive gifts.

Come New Year's Eve, Norma has thrown an elaborate party. At first Joe is wondering where the other guests are. He sits with Norma, and she presents him with an elaborate gold cigarette case. He begins to feel uneasy. When Norma gets up and asks him to dance, he comes to the realization that he is to be the only guest.

While dancing, Norma is obviously flirting with him. He tries to brush her off kindly. But she feels spurned; she slaps him and runs off. Joe has had enough. He decides to get out of his "prison" and spend the New Year with an old friend, Artie Green.

At Artie's, he finds out that Betty, the young reader who insulted his work at Sheldrake's Paramount office, is Artie's fiancee. He decides to move out of Norma's home, and asks Artie to put him up for a few weeks. Artie agrees. While waiting to use the phone to tell Max to pack his bags, Betty asks him about another script he has written, a script she wants to rewrite with him. He agrees, and the two begin flirting. But on calling Norma's, Max informs him that Norma has attempted suicide. He leaves Artie's immediately, and goes to Norma.

Norma is crushed. She asks him to go away. Joe realizes that Norma has been "the only person in this stinkin' town that's ever been good to" him. At the stroke of midnight, as the band downstairs plays Auld Lang Syne, Joe sits by Norma's bed and wishes her a Happy New Year. She greets him with a big kiss. And Joe comes to accept the fact that he is now a "kept man."

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