That evening, Carlson complains bitterly about Candy’s dog, which is old, arthritic, and smells. He offers to kill the dog for Candy, and Candy reluctantly agrees to let him do so. Later, after the others have gone to the barn, hoping to witness a fight between Slim and Curley over Curley’s wife, Lennie and George are alone in the bunkhouse. Lennie wants to hear the story of their farm again, and George retells the dream. Candy overhears and convinces George and Lennie to let him in on the plan because he has money for a down payment. George excitedly believes that, with Candy’s money, they can swing the payment for a ranch he knows of; he figures one more month of work will secure the rest of the money they need. He cautions Lennie and Candy not to tell anyone.
The ranch hands return, making fun of Curley for backing down to Slim. Curley is incensed and picks a fight with Lennie, brutally beating Lennie until George tells Lennie to fight back. Lennie smashes all the bones in Curley’s hand. Taking Curley to a doctor, Slim gets Curley’s promise to say his hand got caught in a machine so Lennie and George won’t get fired. Lennie is afraid he has done “a bad thing” and that George won’t let him tend the rabbits. But George explains that Lennie did not mean to hurt Curley and that he isn’t in trouble.
Later that week, Lennie tells Crooks about the plans to buy a farm, and Crooks says he would like to join them and work for nothing. In the middle of their conversation, Curley’s wife enters and, after Crooks tells her she isn’t welcome in his room and that if she doesn’t leave, he will ask the boss not to let her come to the barn anymore, she threatens him with lynching. Eventually, George returns and tells her to get lost. Dejectedly remembering his place, Crooks retracts his offer.
The next day, Lennie is in the barn with a dead puppy. While Lennie thinks about how he can explain the dead puppy to George, Curley’s wife enters. They talk about how they enjoy touching soft things. She tells him he can touch her hair, but when Lennie strokes it too hard and messes it up, she gets angry. She tries to jerk her head away, and, in fear, Lennie hangs on to her hair. Curley’s wife begins to scream. To keep her from screaming, Lennie holds her so tightly he breaks her neck. Knowing he has done something bad, he goes to the hiding place by the stream.
Candy finds the body of Curley’s wife and goes for George; both men immediately know what has happened. Candy knows that Curley will organize a lynching party, and George says he is not going to let them hurt Lennie. George asks Candy to wait a few minutes before he calls the others; then he slips into the bunkhouse and steals Carlson’s Luger. When Curley comes and sees his murdered wife, he vows to kill Lennie slowly and painfully. George joins the men searching for Lennie.
As they spread out, George alone goes straight for the riverside where he finds Lennie. Lennie knows he has done “a bad thing” and expects George to scold and lecture him. George, however, is so overcome with remorse that he cannot scold Lennie but must save him from Curley’s cruelty. He tells Lennie to look across the river and imagine their little farm. George describes it, as he has done many times before, and while Lennie is smiling with pleasure and envisioning the rabbits he will tend, George shoots Lennie at the back of his neck. The others arrive, and George leads them to believe Lennie had Carlson’s gun which George wrestled away from him and shot in self-defense. Only Slim comprehends the truth, and he takes George off up the footpath for a drink.