Sly tries to rescue Carmelita, but to no avail, and gets captured by Le Paradox in his machine, holding them in a glass container.
After this, Bentley and Murray round up the five ancestors that they have visited throughout time and recover their stolen canes, starting with Rioichi needing to get his own cane. After this, Rioichi must then get Bob's cane. After he does this, Bentley notices there is an energy field shift that is centered on Rioichi. Realizing he is being sent back to Feudal Japan, he says his good byes and disappears. Bentley notices that the temporal abnormality is correcting itself. Bob must then get Salim's cane, which he is successful in, and is sent back to the Ice Age. Salim is then assigned to recover Sir Galleth's cane, and is then sent back to Arabia. Galleth then needs to recover Tennessee Kid's cane by using his Catapult Crash Technique to break through circuits and recover the cane. Tennessee is then tasked with making it through the interior of the blimp by shooting timers and then using using Crackshot to crack the code of one of Le Paradox's doors. After this is complete, a cutscene shows Sly and Carmelita trapped and Le Paradox introducing them to his time tunnel, something that Penelope made for him before her "unfortunate" capture, which would bounce them through time at Le Paradox's command. However just as they are about to go through the time tunnel, Tennessee shots the container holding Sly and Carmelita and freeing them. After this Tennessee says "Reckon my time here is up", and goes back to the Old West.
After Bentley, Murray, and Carmelita escape, Sly and Le Paradox battle in the climax of the game. The battle in the time tunnel room, in the time tunnel, and as it is on fire, the edge of the blimp's exterior means Sly is able to defeat Le Paradox. During the fight, Le Paradox reveals his intentions to become the greatest thief ever and believes he did so by going back in time and stealing the Cooper Family's canes. Sly calls him an idiot for believing this and informs him that he could have been the greatest thief of all time, but instead gave into his enormous ego and blew his own cover as a black market art dealer to INTERPOL. Furthermore, Le Paradox cannot take the credit for stealing the canes since he used his hired help to do all the real work. Le Paradox considers Sly's words and realizes he's right, but still wants to fight Sly to the death. However, Le Paradox, holding on to the blimp's main rod for dear life, asks Sly to help him up because he "doesn't wish to die." Sly says he won't do much harm from behind a prison cell, but after helping him up, Le Paradox steals Sly's paraglider, and says "As I said, so predictable." He paraglides off the blimp, but then smashes into the tail of a passing plane, sending him into a body of water, while Sly is left stranded on the doomed blimp.
- "Déjà vu all over again" is a phrase taken from a famous (attributed) quotation from Yogi Berra: "It's like déjà vu all over again."