Jack, imprisoned and alienated, wants nothing more than to live life as a normal boy, and unlike Josh, who wishes to be "big," Jack essentially wishes to be "small." Mr. Woodruff thinks that it might be good for Jack to go out and face the world, and suggests to Jack's parents that he finally start attending school with other children his age. So Jack is enrolled at the local public school, and fitting in proves to be quite difficult.
Jack does his best to fit in, but initially his peers regard him as a "monster." During recess, some of the boys invite Jack to play basketball against the bullies. None of the other boys can compete with Jack, and Louie and his friends find that they can use Jack's stature to their advantage. The boys start to spend more time with Jack, but do not yet accept him. In one scene, Louie and co. convince Jack to buy them a Penthouse magazine.
Jack eventually befriends Louie, and soon after, he is embraced by the other children as well. Jack begins to flourish and his pure optimism in the face of seemingly hopeless adversity touches the entire community, causing a sort of social metamorphosis within each individual. The movie ends with Jack’s valedictorian speech at his high school graduation as an old man.