The four remaining designers were brought on a "Livin' La Vida Imelda" architectural tour with Carlos Celdran, a celebrity tour guide. Before the beginning of the tour, Celdran told the designers about their next challenge: to create a "terno," a variation of the baro't saya with butterfly sleeves popularized by Former First Lady Imelda Marcos, and who continues to wear the terno.[25] The Project Runway design was to take the dress to the 21st Century. Celdran then reintroduced the designers to the Cultural Center of the Philippines Complex, which houses the Cultural Center of the Philippines, Philippine International Convention Center, Folk Arts Theater, and Manila Film Center. All of these establishments were built during the 1970s, a decade ruled under Martial law by Former President Ferdinand Marcos but was also a period of renaissance for Philippine arts and culture headed by its Former First Lady Marcos. The designers were then given P5,000 (roughly US$105) and 30 minutes to shop for materials in Metro Gaisano.
After sketching their designs and shopping for materials, the designers were then brought to the residence of Imelda Marcos, who narrated about the evolution of the terno from a heavy four-piece ensemble inspired during the country's Spanish colonization period to a simple one-piece dress highlighted with a pair of butterfly sleeves, adapting to the aesthetics of Filipinos during the Post-War period. The designers pitched their sketches to Marcos, who was pleased by their designs.
The designers were given a total of three days to complete their outfit, with Reyes getting an extra hour of work as the winner of the previous episode's challenge.