As the designers head to Mood, they've got $350 (£228) to spend on materials but only a half hour to do it in. Everyone scrambles to find the perfect fabrics before heading back to the workroom, where April reveals that she wants to go for a mod look, while Gordana wants to show the feminine side of women. Mondo thinks that her work is soft and beautiful, but not meant for this challenge as it doesn't make enough of a statement.
Everyone is feeling the pressure and arguments erupt when Kara and Mondo want to use the same pair of pink gloves. Mondo eventually relents as he does not want to argue, but he is admittedly annoyed. Meanwhile, the other designers are also eyeing their accessory choices and staking their claim before anyone else can take their preferred pieces.
Mila is having mixed feelings about translating her point of view into something Miss Piggy would wear, while Kara questions if she can "sex up" the character. Rami is going for a "happy dress", which Michael agrees is flirty and fun but criticises as being a little safe. Anthony is doing an elegant variation on the little black dress and April is keeping her head down and working hard in other to avoid ending up in the bottom two again.
Kenley wants to incorporate her retro style into her design and seeks confirmation from Kara, who assures her that her work will turn out perfectly. However, this annoys Mila, as she feels that they're in a competition and should not need so much reenforcement from their fellow designers.
Joanna comes to discuss the designs with the contestants, and speaks to Gordana first about her short pink dress. Unfortunately, Joanna gets "a bit of a nightgown vibe" from it and wonders what she can do to turn it into a cocktail dress. While Gordana is aiming for comfort, Joanna insists that celebrities don't care about comfort as much as they do about looking good.
Mila's take on the little black dress impresses Joanna, although she urges Mila to consider her accessories so that it all comes together. Joanna does not have many comments for Kenley, other than questioning her on how Miss Piggy will feel about wearing a giraffe print. Moving onto Austin, Joanna is curious to see how his gift-wrap-inspired dress will pan out, while she also advises Mondo to keep his focus during this challenge.
The work day is coming to an end, and each of the designers scrambles to get as much as they can done during their model fittings before finishing for the day. However, Mila is frustrated by what she sees as the co-dependent relationship between Kara and Kenley as it is not a group competition and only one person can win.
At the runway, host Angela Lindvall, Isaac Mizrahi and Georgina Chapman are joined by costume designer Eric Daman and Miss Piggy to judge the designs.
Michael C is named the winner of the challenge, with all the judges appreciating his unique take on the cocktail theme. Georgina appreciates the sophisticated direction that Michael C took with his dress, and Miss Piggy loves that it looks like a present because of the bows featured on the front.
Angela thinks that Rami's polka dot organza dress could be difficult for the average woman to wear, but luckily Miss Piggy isn't average. Georgina is happy that he went for it because it's fun and made her smile. Eric agrees, saying that it reminds him of Paris haute couture and that the design is note perfect. Miss Piggy calls it "the most garish, outlandish, ridiculous thing [she's] ever seen" but she loves it because it "looks like a candy store exploded".
Austin's pink and grey dress is very beautifully constructed, according to Georgina, but she questions the particular shade of pink as it's not "happy". Eric thinks that the bows on the hip of the dress might accentuate a woman's hips in a bad way, while Angela agrees that something in the construction seems wrong. Miss Piggy wonders if it's a functional dress and also has a problem with the bows.
Kenley's colour makes Georgina smile, but she doesn't like the way that the top is constructed as it looks like it's stuck down and could be uncomfortable to wear. Eric loves that it's a modern-day animal print and praises the inclusion of the hat as it adds to the sense of whimsy her design is aiming for. Miss Piggy jokes that she could use the hat to clean her pots and pans but doesn't seem overly keen on the dress itself.
Conversely, Mila struggles with her mod-inspired striped mini-dress and draws criticism from Georgina for choosing black and white rather than colour, which would photograph better on the red carpet. Eric appreciates the linear aspect of the design, but also wanted more colour. Miss Piggy likes the retro aspect of it but doesn't think she'd wear it herself.
Gordana's pink dress is really pretty, Angela says, but thinks that it's too understated and not sophisticated. Georgina thinks it's a pretty cocktail dress but that the accessories are all wrong. Miss Piggy also confesses that she's not sure that it's her, and everyone seems lukewarm about it at best.
Eventually, Gordana is sent home. "Thank you for this opportunity. This is a great honour to be here. Every time I get into these challenges, something unleashes in you and you just want to push farther," she says following her elimination. "I'm looking forward to going home and unleashing it.
"The one thing that I want to say to people - especially women my age who have given up their lives to raise their families and send their kids to college - is that it's never too late to follow your own dream, whatever that might be."
Project Runway: All Stars airs Thursdays at 9/8c on Lifetime.
Browse a gallery of this week's final designs below: