Each designer has a budget of $399 to decorate an empty room using items purchased at a 99-cent store.
Then they must each record a presentation of their room to show the judges how they will act on camera.
The three remaining designers are each randomly assigned to a deserving family chosen by HGTV to receive a $10,000 makeover of any room.
One will be eliminated, and the remaining two move on to the final challenge and the nationwide vote for the next Design Star.
The final two designers each have a $10,000 budget to make over a hotel suite in Hawaii.