The Best Story Endings: Lessons from Michael Arndt (writer of Toy Story 3)

Creating a powerful and unforgettable ending is one of the greatest challenges in storytelling. Michael Arndt, the Academy Award-winning screenwriter of Toy Story 3 and Little Miss Sunshine, has studied what makes endings not just good, but "insanely great."

In his lecture series, Endings: The Good, the Bad, and the Insanely Great, Arndt breaks down how great endings resolve three crucial sets of stakes—external, internal, and philosophical—and how a single defining act by the protagonist brings everything to a climax.

In this post, we’ll explore these key principles and how they apply to some of the most iconic film endings.

First off, if you haven't read "Save the Cat" yet, do it.

Every aspiring writer needs a least a general understanding

of Blake Snyder's Beat Sheet. Although it's a guideline, many

of story pitches will ride on your ability to explain these beats.

Save the Cat by Blake Snyder

https://amzn.to/3Xd2mik (Amazon affiliate)

What Makes an "Insanely Great" Ending?

According to Arndt, endings fall into three categories:

1. Bad Endings – Predictable, unsatisfying, or emotionally flat.

   
   

2. Good Endings – These provide closure, making logical sense based on the story’s setup.

   
   

3. Insanely Great Endings – These endings do more than just resolve the plot—they deliver a profound emotional payoff by dramatically overturning the story’s values in a single defining act.

   
   

The defining act is the moment where the protagonist makes a final choice or takes an action that resolves all three stakes at once. It’s the culmination of everything they’ve been struggling with—and it’s what makes the ending feel earned.

The Three Stakes That Shape Great Endings

For an ending to feel insanely great, it must resolve the following stakes:

1. External Stakes – The protagonist’s physical goal (e.g., defeating the villain, winning the race, escaping danger).

   
   

2. Internal Stakes – The personal, emotional journey (e.g., overcoming fear, accepting responsibility, finding self-worth).

   
   

3. Philosophical Stakes – The bigger thematic question of the film (e.g., good vs. evil, self-interest vs. community, fate vs. free will).

The defining act overturns these stakes in an unexpected but inevitable way, making the ending deeply satisfying. Let’s explore this in action.

Case Studies: Insanely Great Story Endings & Their Defining Acts

Star Wars (1977) – The Leap of Faith

• External Stakes: The Rebel Alliance must destroy the Death Star before it wipes them out.

  
  

• Internal Stakes: Luke Skywalker must answer his call to greatness, stepping into his role as a hero rather than remaining a passive farm boy.

  
  

• Philosophical Stakes: The battle between faith and intuition (The Force)

  vs. technology and control (The Empire).

🎯 Defining Act:

At the climax, Luke turns off his targeting computer and trusts the Force to fire the perfect shot.

🚀 Why This Ending Works:This moment overturns all three stakes:

✅ External: The Death Star is destroyed.

✅ Internal: Luke fully embraces his potential—he’s no longer just a dreamer, but a Jedi in the making.

✅ Philosophical: The Force triumphs over cold, mechanical power, proving that faith is stronger than control.

🔑 Why it’s an insanely great ending: Luke’s defining act isn’t just about blowing up the Death Star—it’s about trusting our universal connectedness. That’s why it’s emotionally satisfying and resonates beyond the action itself.

Pretty cool, right?

The Graduate (1967) – The Illusion of Escape

• External Stakes: Benjamin Braddock must interrupt Elaine’s wedding and take her away.

  
  

• Internal Stakes: Benjamin, who has been drifting aimlessly, finally feels real connection—not with Mrs. Robinson, but with Elaine. She is the first person who makes him feel truly seen and understood.

  
  

• Philosophical Stakes: The film critiques a generation that prioritizes appearances over truth, as seen in Mrs. Robinson’s attempts to cover up the fact that Elaine was an accident—just as Benjamin’s entire post-college future has been dictated by people avoiding difficult truths.

  
  

🎯 Defining Act:

When Ben sees that he's too late, he BANGS on the glass, "Elaine...Elaine..." Elaine responds "Ben!" and fights to break free, her mother telling her it's too late and Elaine telling her Mother "not for me". Escapes with him out of the church, getting on a bus and leaving the silent generation behind.

🚎 Why This Ending Works:

✅ External: Benjamin successfully stops the wedding and “wins” the girl.

✅ Internal: He breaks free from his aimless existence, finally making a choice based on genuine emotion rather than passive rebellion.

✅ Philosophical: Yet as they sit on the bus, their smiles fade. They realize that escaping doesn’t necessarily mean finding clarity—just as their parents’ generation covered up mistakes rather than confronting them, Benjamin and Elaine may have run from something without truly knowing where they’re headed.

🔑 Why it’s an insanely great ending:Instead of a triumphant romantic resolution, The Graduate leaves us questioning what happens next—mirroring its deeper theme: Is rebellion enough, or are they still trapped by the same illusions?

Little Miss Sunshine (2006) – Redefining Success

• External Stakes: 

  The Hoover family must get Olive to the beauty pageant in Redondo beach.

  
  

• Internal Stakes: Each family member struggles with their own failures, searching for validation and self-worth.

  
  

• Philosophical Stakes: The film challenges society’s definition of success, arguing that true happiness comes from embracing who you are.

🎯 Defining Act:

When Olive takes the stage, instead of conforming to traditional beauty standards, she performs an outlandish dance routine—and her family joins her on stage in solidarity. An especially delightful moment is when Greg Kinnear's character is confronted by the pageant Director, "What is your daughter doing?" And he, the ultimate winner-first perspective, retorts "She's kickin' ass."

🌻 Why This Ending Works:

✅ External: Olive competes in the pageant (even if unconventionally).

✅ Internal: The family chooses unity over individual insecurity—they stop caring about “winning” and embrace their weirdness together.

✅ Philosophical: The story redefines success, proving that joy and authenticity matter more than external validation.

🔑 Why it’s an insanely great ending:The defining act—the entire family dancing together—overturns traditional values about winning and losing. By embracing imperfection, they find real success.

How to Apply This to Your Own Writing

If you want your ending to feel insanely great, follow these steps:

1. Identify Your Stakes Early: Establish the external, internal, and philosophical conflicts in Act 1 so they pay off in the climax.

   
   

2. Create a Defining Act: Your protagonist must take action in the climax that overturns all three stakes.

   
   

3. Make It Inevitable Yet Surprising: The audience should not see it coming—but in hindsight, it feels like the only way the story could end.

   
   

4. Emphasize Meaning Over Plot: The best endings resonate because they reveal the true message of the story, not just the resolution of the action.

Final Takeaway: Great Endings Are Defined by Choice

Michael Arndt teaches that the most powerful endings don’t just wrap up the plot—they transform the protagonist and solidify the film’s deeper meaning.

Whether it’s Luke trusting the Force, Benjamin escaping into the unknown, or the Hoovers redefining success, the defining act is what makes an ending truly unforgettable.

🎬 What’s Next?

For a deeper dive into this approach, watch Michael Arndt’s full lecture on YouTube.

If you’re a filmmaker looking to craft an insanely great ending, remember: It all comes down to the defining act. 🚀

Follow @testament.productions on Instagram.