This episode's challenge is to create at least two pieces of sexy sleepwear for Pyjama King Peter Alexander's summer collection. The garment needed to be a pyjama or lingerie style, with one piece being able to be used as outdoor daywear. The designers had 15 minutes to sketch their designs, $75 to purchase their fabrics and 8 hours to create their look. The winner of the challenge will have their garment commercially produced and sold in selected Peter Alexander stores.