The full story
Mysterio's final act succeeded. The whole world knows Peter Parker is Spider-Man. His life implodes—protests outside his apartment, his friends harassed, MIT rejecting him, MJ, and Ned. Peter is desperate. He goes to Doctor Strange.
Strange agrees to cast a spell that will make everyone forget Peter Parker is Spider-Man. Peter keeps asking for exceptions—MJ should remember, and Ned, and Aunt May, and Happy—and each change destabilizes the spell. Strange contains the damage, but the multiverse has already cracked.
Visitors start arriving—specific ones, not random people. Villains who died fighting Spider-Man in other universes, pulled here at the moment of their deaths. Doc Ock from Sam Raimi's Spider-Man 2. The Green Goblin from the first Raimi film. Electro from The Amazing Spider-Man 2. Sandman. The Lizard. They are confused, dangerous, and doomed—if they return to their universes, they die.
Peter captures them. Strange prepares to send them back to their own universes to die. Peter refuses—he cannot let that happen. He steals Strange's spell-containing box, trapping Strange in the Mirror Dimension, and hides the villains at Happy's apartment, attempting to cure them instead. Norman Osborn, briefly freed from the Goblin persona, helps; together they cure Otto Octavius.
The Goblin resurfaces mid-cure and the other villains—Electro, Sandman, the Lizard—escape uncured. "Strong enough to have it all... too weak to take it," he taunts Peter as they fight down through the building. In the lobby, May tries the untested cure on Goblin herself, but it fails. His glider strikes her, and a pumpkin bomb explodes near them both. May is fatally wounded. Dying in Peter's arms, she tells him: "You have a gift. You have power. And with great power, there must also come great responsibility." She has never said it before in this universe, but Peter listens. Peter wants to kill Norman.
MJ and Ned accidentally open a portal while trying to find Peter. They find a Peter—just not theirs. Then another one. Tobey Maguire's Spider-Man. Andrew Garfield's Spider-Man. Three Peter Parkers, together, working to finish what the MCU Peter started: curing the villains instead of killing them.
The final battle at the Statue of Liberty features multiple conflicts. Electro increases his power output. Doc Ock switches sides. Sandman wants to go home. Goblin attempts to break Peter. The multiverse starts tearing itself apart as more visitors begin crossing over.
Tobey's Peter stops Tom's Peter from killing Norman. Andrew's Peter saves MJ from falling, something he could not do for Gwen. The Peters cure everyone. Strange cannot contain the spell anymore. The only solution: make everyone in every universe forget Peter Parker exists.
Peter says goodbye to MJ and Ned, promising to find them and remind them. Strange casts the spell. Everyone forgets. The multiverse seals. Peter is alone.
The epilogue shows Peter visiting MJ at the coffee shop. She does not recognize him. Ned does not know him. He starts to explain, sees the bandage on MJ's head from the battle, and stops. He walks away.
No Way Home ends with Peter alone—no Stark tech, no connections, no one who remembers him. He sews his own suit. He has a police scanner. He is the friendly neighborhood Spider-Man, starting from nothing.