The Wizard reveals he had been a ballonist and promises to return Dorothy to Kansas. He tells his subjects he is embarking on a "hazardous and technically unexplainable journey into the outer stratosphere to confer, converse, and otherwise hobknob with my brother Wizards" and appoints the Scarecrow to take his place, assisted by Cowardly Lion and the Tin Man.

Just as the balloon is about to take off, Toto sees a cat and Dorothy climbs out after him while the Wizard flies away, unable to stop and leaves without Dorothy. Glinda, the Good Witch, reappears and tells Dorothy that she has had the ability to go home with the magic of the ruby slippers, but she had to discover it for herself.

Dorothy ponders and realizes that the magic is that "it's that if I ever go looking for my heart's desire again, I won't look any further than my own backyard because, if it isn't there, I never really lost it to begin with."

Dorothy says a tearful goodbye to her friends and Glinda tells her to click her heels three times and think to herself, "There's no place like home."