Steinberg thinks Hannah has renounced Spiritualism for good, but then overhears a man talking loudly about her famous séances. He manages to sneak unobserved into the room during the next sitting, and is surprised and delighted when the spirit of his friend Ricardo appears. They slip away into a cabinet, escaping the attention of Hannah. Afterwards, some of the guests mention to her the materialisation of an old man and the arrival of a figure they assumed to be her husband, who was heard to emit a groan.
Steinberg has indeed learnt the truth behind his friend’s death and is appalled. He confronts Hannah and declares that he will not live with her again. She mounts a spirited defence, insisting that she would agree to it only if he divorced her. She taunts him with allusions to her Italian lover, one of many, knowing that he will want to avoid the infamy of the Divorce Court. She expresses sympathy with Leonora, claiming that she was greatly wronged by Ricardo.
Suddenly, the scales fall from Steinberg’s eyes and he exclaims that the woman before him is not Hannah Stubbs, but Leonora d’Assissi. She acknowledges the truth of his assertion, adding that she has inhabited the body of Hannah Stubbs in order to wreak her revenge on Ricardo. She declares: “I’m in the body of your lawful wife, and if you don’t choose to live with me, you must make me a suitable allowance.” He threatens to lock her in the room, but she runs away from him, drawing a knife. He pushes her away from him in self defence, and, with a scream of terror she crashes down the stairs.
The crumpled form of Hannah is not quite dead. She recovers very slowly with a remorseful Steinberg at her side. With relief he sees the spirit of Leonora depart. When Hannah eventually regains consciousness, she is returned to her old self and she enquires after Ricardo. She also expresses a desperate need to see her mother. Upon enquiring with the family, Steinberg learns that she died the day before. When he returns to break the news to Hannah, he discovers her lifeless form. Her spirit rises up and embraces that of her mother.
As Hannah tells Professor Ricardo, “it’s not all jam having a medium in the house.”