16 new contestants arrive in Los Angeles to begin the competition. The designers must create a red carpet look showing innovation and point of view. They have $200 and two days to complete their designs.

The designers are asked to create something fashionable and easy to move in, but also appropriate for a pregnant woman to wear out in public, for supermodel Rebecca Romijn. They have $100 and two days to complete the look.

The designers are divided into teams of two and asked to create a fun and fashionable look inspired by Californian surfwear. The have $50 and two days to complete their looks. Later, the designers are given the additional challenge of creating an avant-garde companion piece to their surfwear outfit. They receive an additional $200 for the second look.

The designers must create an eye-catching look to be worn at a fashion industry event by their model/clients. They have $100 and one day to make it work.

The contestant are asked to use Los Angeles Times newspapers as fabric to create their looks. They have three minutes to grab materials and one day to complete the challenge.

The designers have to create an outfit inspired by film genres (Film Noir, Western, Period, Science Fiction, and Action/Adventure). They have $150 and one day to complete their designs.

The designers, working in pairs, have to create two looks for Macy's INC International Concepts brand using blue fabrics. They have $100 and one day to complete their looks.

The designers have to repurpose wedding gowns of newly divorced women into fashionable new looks. They have $25 for a maximum of two yards of additional fabric and one day to complete the challenge.

The designers have to create an extravagant stage look for Christina Aguilera, which should catch the attention of the audience from far away and also look chic on video from very close. They have $300 and two days to complete their designs.

The designers must create a look inspired by seven locales around the world (Palm Beach, Greece, Saint-Tropez, New York City, Aspen, Santa Fe, and Hollywood). They have $150 and one day to complete the challenge.

The designers are asked to create a companion piece for one of their looks from a previous challenge. They have $100 and one day to complete their outfits.

For the final challenge before Fashion Week, the designers go to Los Angeles's famed Getty Center, where they are to draw inspiration from any location in and around the center and the museum to create their looks. They have $300 and two days to complete their outfits.

Each of the remaining designers is given 10 weeks and $9000 to design a 12-piece collection for Fashion Week. In the interim, each gets a special visit in their hometown from Tim Gunn. Back in New York, the designers are given a final challenge of creating a thirteenth look for their collections.

In the conclusion of the finale, the remaining contestants ready their collections for the runway. Then they present their lines to industry insiders at Fashion Week.