The episode was written by show creator Dana Terrace and John Bailey Owen, and directed by Bosook Coburn and Bridget Underwood.

The three realize the childlike Collector does not comprehend death or empathy, so resolve to teach him friendship by taking him to sites of their past adventures.

Meanwhile, Camila is returned to normal as the Archive House begins to crumble, and with the kids exhausted after everything they've been through, she convinces them to use glyphs to help rescue the puppets.

As Belos assumes control of the island and begins to move, the Collector flies off to protect the Archive House, while Amity, Gus, Willow, Hunter, and Camila use the glyphs to free the puppets.

An enraged Luz rips Belos out, disintegrating the corruption and healing the land, and the Collector stops the Archive House from crashing.

Back at the castle, a melting Belos tries feigning reformation, but Luz ignores the lie and silently watches as Eda, King, and Raine stomp out his remains, killing him once and for all.

The Collector proceeds to release all the remaining people, and everyone on the island reunites, including Luz with her friends and Camila, and Eda with Lilith and Hooty.

[6] Dana Terrace had denied that this was the cause, revealing during a Reddit AMA that it was due to a variety of factors that were beyond her control, though she has admitted that if Disney Television Animation had different people in charge, the show would have most likely lasted longer.

[8] On March 22, 2023, The Walt Disney Company released an official one-minute trailer for the episode, featuring Luz and her friends battling against both The Collector and Emperor Belos.

King would praise the redemption arc for The Collector and the episode's messages, saying "The Owl House leaves us with a mantra of guilt, forgiveness, and love woven through a passage of time that stops for nobody.

"[14] Writer for Comic Book Resources, Marc York, wrote that "For the most part, TOH handled being cut short with grace and dignity.

"[15] Writer for Collider, Emily Kavanagh, praised how the finale was able to handle both Emperor Belos and The Collector as villains and the nuance of forgiveness and redemption.

"[17] Writer for Autostraddle, Heather Hogan, wrote, "The series ended this weekend, triumphantly and unapologetically queer, just like its creator, Dana Terrace.

'Watching and Dreaming' would always have been a triumph — to close out a story with so many beloved characters, and such deep mythology, in a truncated final season mandated by spineless Disney execs is no small task — but doing so in a time of so much violence aimed at gay and trans kids feels like the firm planting of a beacon of hope.