I'm so annoyed that Caroline did not realize that Elena was Katherine. I was counting on her. She's always been the one who was quick on the uptake with that in the past. Especially after her first question after she told her about Klaus was to ask if he was better in bed than Tyler. Girl. You should know better. Maybe we can chalk it up to her being distracted about her sleeping with Klaus, but even if that's true, she should figure this out soon.
Okay, so Katherine being in Elena's body isn't permanent until we can get Katherine's body and do a proper ritual. However, Damon has buried the body and he refuses to say where as he doesn't want Katherine to have peace in death. And, until that happens, Elena can pop out at any moment, so Nadia is keeping Katherine chained up in a bed at a motel while she tries the find the body.
While she's gone, Elena does pop out. She immediately figures out what's going on, breaks out of the chains and rushes over to her phone. However, before she can do anything, Nadia shows back up and calls Katherine back. Katherine has the brilliant idea to go to Tyler's party (Matt is throwing him a welcome back party) and chat up Damon as Elena and try to figure out where she is buried. Nadia is very against this as Elena could show up at any moment. Plus, she'd really need to pass as Elena.
So, she meets up with Matt and compels him to tell her everything she needs to know about being Elena. Although, to be fair, she really didn't ask that many questions, but it seems like she's satisfied.
At the party, Katherine runs into Stefan and asks him if he knows where the body is, pretending she wants to bring flowers. Stefan thinks this is weird, as Elena hated Katherine, but doesn't push the issue. He tells her he doesn't know though. Damon will only say that 'she's where she always should have been.' (Or something close to that). And Katherine pretty much knows exactly where that is.
She sends Nadia over to get started and starts to say her goodbyes, but she runs into Caroline who is dying to tell her about sleeping with Klaus. Katherine, because she's a bitch, can see Tyler coming down the stairs and starts to discuss loud enough so he can overhear. Caroline is devastated when she realizes he knows. (And I was devastated when I realized Caroline did not clock this as Elena).
Caroline tries to talk to him, but he's livid. He's screaming about how awful Klaus is and all the people he's killed, including his mom (he's not wrong about any of this). And then his temper gets the better of him and he starts to shift and seems like he's about to attack her, but Stefan shows up and calms him down while Caroline leaves.
Meanwhile, Katherine has made her way to the tomb where some Traveler and Nadia are working on the ritual to make the swap permanent. As this is occurring, Elena is back. She pretends to continue to be Katherine while she figures out what to do. Eventually, she attacks the Traveler and runs. She's trying to figure out what to do and where to go while being in pain (the Traveler is back in commission and trying to finish the spell). She finally breaks through the tree line and leaps into Damon's arms. He tries to calm her down, and by the time he finally does, the spell is completed and she's permanently (one would assume, but also, not because this can't actually happen for real) Katherine.
Damon tells her he was wrong and he wants her back and he's a better person with her in his life. However, Katherine (who, by the way, has her eyes set on getting Stefan back) tells him that they are over. And mentions the fact that he tortured Katherine while she was dying (this should have been a bit of a clue- maybe?). She smiles happily to herself as she walks back to the tomb.
During all this, Enzo has brought Aaron to Damon so he can kill him. At this point, Damon is still trying to be good since he thinks he still has a shot with Elena. So, he refuses to kill him. He ends up breaking Enzo's neck and compelling Aaron to leave town. Then, at the end of the episode when 'Elena' rejected him, he and Enzo team up to kill Aaron. Bad boy Damon is back.