After auditions in New York, Houston, Miami, and Los Angeles, the 16 contestants being considered for this season's cast were given six yards of plain white muslin, $20, and one week to create an outfit that best represents who they are as a fashion designer. After arriving, the 16 contestants find that only 14 positions were available in the Parsons workroom and thus two will be eliminated at the runway judging.

Heidi throws a roof-top party for the designers. At the party, she announces their next challenge: each must create an outfit using nothing besides the clothes he or she has worn to the party. They have one day to complete their designs.

The contestants are asked to design for a global star… Barbie. The winning designer's outfit will be duplicated for the My Scene Barbie collection. The designers have a budget of $150 and two days to complete their designs.

The remaining designers must each create a dress for prominent socialite Nicky Hilton. The designers have a budget of $150 and two days to complete the designs.

The designers, in five teams of two, must create a day-to-evening ensemble for Banana Republic, as well as a compelling and successful window display advertising the clothing. Each team has to finish their garment in one day.

The designers have to get sporty to create a garment for 2006 Olympic silver medalist Sasha Cohen. The designers have a budget of $150 and two days to complete the design.

The contestants have to draw inspiration from their surroundings while outside in New York. The designers have a budget of $100 and one day to complete the outfit.

Designers must create a look using only natural materials purchased in the flower district. The designers have a budget of $100 and one day to create the garment.

The designers must design a makeover look for another designer, who will then model the new look on the runway. The designers have a budget of $200 and two days to complete the outfit.

The contestants face off in the final competition before the Olympus Fashion Week finale. They must design an evening gown that will be worn by supermodel Iman. The designers have a budget of $300 and two days to complete the outfit.

The 16 contestants reunite to discuss their personal highs and woes during the various challenges and reflect on just how the show has changed their lives.

In Part 1 of the season finale, the finalists return to their homes to create the line that will be shown at Olympus Fashion Week. The episode includes a look at the contestants' personal lives as Tim Gunn makes a visit to each of their homes. Back in New York, they have to complete one final challenge: each will make an additional garment that they'll design with the aid of one eliminated contestant.

In the conclusion of the finale, the remaining contestants complete their 13th look and polish the rest of their collection. Then they present their lines to industry insiders at Olympus Fashion Week.

Fifteen designers arrive in New York and are asked to create an outfit in just two days using only materials found in their apartments.

The designers are paired into groups to design and create a gown for Miss USA, Tara Conner, to wear for the Miss Universe pageant. The designers have $300 and two days to complete their designs.

The designers are informed that they'll be creating an evening outfit based on a story inspired by a tiny dog. The designers must also design outfits for the dogs to wear. They have $150 and two days to complete their looks.

The designers, in teams of three, are asked to design a three-piece look that embraces the INC (International Concepts) brand. The winning design will be manufactured, produced, and sold at Macy's stores. The teams have $100 and two days to complete the challenge.

The designers face the challenge of modernizing a look for a famous "fashion icon:" Cher, Farrah Fawcett, Pam Grier, Audrey Hepburn, Katharine Hepburn, Madonna, Marilyn Monroe, Jackie Onassis, Diana Ross, or Twiggy. They have $150 and two days to complete their designs.

At the Waste Management Recycle America Center, each designer is given 30 minutes to fill as many bins as they desire with recyclable materials. They must create an outfit from these materials, in one day, with an additional $25 for art supplies.

The designers are asked to create an outfit for an "everyday woman" …each other's mothers and sisters. They have $150 and one day to complete the challenge.

The designers are tasked to create an "international jet-set" outfit. They will then be flown to Paris to model the wearability of the garments. They have $75 and one day to complete the look.

While in Paris, the designers' next challenge is to make a gown employing haute couture techniques. They have 300€ and two days to complete the challenge.

Eliminated designers who have won at least one previous challenge are given a chance to get back into the competition. The designers are asked to create a cocktail dress using only black and white fabrics. They have $100 and one day to complete their design, with the stipulation that they must use all of their purchased fabric.

The designers are asked to create an outfit that expresses "their specific point of view." They must also stage a photo-shoot with their models and find three words that best express who they are as designers. They have $250 and two days to complete the challenge.

The cast of Season 3 reunites to recap all the gripes, drama and other shenanigans which were only seen by those behind the scenes. One of the designers wins the first ever "Fan Favorite" award, along with a check for $10,000.