Mike is snapped out of his dream when Lyla and Margo come knocking at the door. Margo tells him about the happenings at the engagement party and Lyla makes mention of Holden and Lily's big fight. Mike flashes back to their kiss and then to his dream. As he wonders what's wrong with him, Lyla states the obvious. She says that the longer he estranges himself from Katie, the longer she'll be caught up in this amenesiac world of still being married to Henry. Margo invites Mike to enjoy Christmas dinner with her, Carig, Lyla, Lisa, and Tom. Mike asks if Katie will be there and Margo promises that she knows what she's doing. Katie almost runs out of the room when she sees Mike come in. Meanwhile, Margo follows her mother's advice and has a heart to heart with Craig. She truly begins to understand what she has heard people say in the past about prison changing people for the better. But then again, doubts soon find their way back in her mind and she silently thinks..."Or for the worse".

Lisa has a heart to heart with Tom and she tells him that she doesn't know why she never listened to him about Grant. Tom grabs Lisa by the hand and she rests her head on his shoulder. She cries that she doesn't know why she can't just find happiness and voices her fears aloud of dying a lonely old woman.

Lily dodges Holden the whole next day, hoping to avoid any questions of where she went last night. Though she knows it was only a kiss that she and Mike shared, she's scared at what damage it could do to her and Holden...no matter how stable or un-stable they are. Lucinda comes by to bring Holden a holiday bonus. Holden arrives and asks Lucinda if she saw Erin anywhere earlier. Holden gets worried and calls Kim, who's making last minute plans for the Hal Munson Memorial Telethon to be held on Yew Year's. Kim says that Erin hasn't been feeling well, but promises to send her by later.

Jason sits at a lonely table inside Metro. A waitress tells him that they're closing for the holidays and to go be with his family. Jason says that he has none, but then thinks back to seeing Erin that time in the WOAK offices. Just then, a hand touches his shoulder. It's Erin and the two are ecstatic to see each other since they were seperated at birth. They catch up and Erin invites her big brother to dine with her at the Hughes home.

Emma, Holden, Carly, Jack, Lucinda, Lily, Lucinda, Maddie, Luke, and all the kids settle down for a nice holiday dinner. Meg and Dusty are unable to attend due to some last minute emergency but everyone is thrilled when Iva arrives. Iva learns of Josh's outrageous interruption at Dusty and Meg's wedding and then hears the latest gossip (from Lucinda) on Grant and Emma.

Meanwhile, Grant is still beaming from seeing his daughter, Dana. Dana says that her visist is only temporary. She explains how a friend from UCLA saw an internet article on Grant's upcoming wedding and after they told her, she just had to come see him one last time. Grant wonders why it's "one last time" but doesn't say anything. They agree to have Christmas by themselves at the Lakeview.

Emma refelcts back on the night of the party and Iva notices. Emma attributes her foul mood to Grant and Iva begs her mother to leave Jack and Carly with the farm and come live with her for a while. Emma promises to give it some thought and the two sit down for yet another Snyder Christmas dinner.

Kim and Bob are thrilled to see that Erin has brought her "friend" to dinner, though Kim pulls aside Erin and tells her that she's known longer than Erin that Jason, her brother, was back in town. Bob starts off the evening by presenting Erin with a toast. Nancy follows suit by toasting to the city of Oakdale in 2007. Erin asks if Andy will be joining them and Kim wonders where he is.

Andy sits on the sidewalk outside a liquor store with a fresh bottle of boose. A stranger comes and helps Andy up. It's Susan. She tells him that she knows what John and Roxie are doing and asks for his help in unmasking them as the assailants behind his and Emily's troubles. Andy agrees, scolds himself for imamaturely thinking of turning to alcohol for comfort, and then he crashes the bottle of boose against the ground.

Emily listens to the fourht message Andy has left her for the day. She hangs up her cell and Daniel asks where Grandma wnet. Emily assures Daniel that she'll be right back. She was just going to get something she forgot for dinner. Then, in walks Susan. Emily and Daniel welcome her home and start to close the door, but Susan tells them that she has a surprise. In walks Andy.

Will, Gwen, and Barbara are saddened to learn that Johnny has a cold and neither he nor Nick nor Jennifer will be coming this holiday. Will announces to Gwen that he knows what she did. As Gwen flashes back to stealing all of Jason's stuff when she was younger and then seeing him at Ice, Will soothes her fears when he says that he saw her wrapping his present. Gwen gives Will his present and Will gives Barbara one and so on. And surprisingly, Barbara sits and just smiles at Will and Gwen. For the first time in a year...no name-calling, no threats, no black-mailing, no guilt trips. Just smiling, food, and presents.

Maddie is able to get a hold of her sisters and her other two brothers and wish them a happy holiday. Katie walks by and teases Maddie for her having so many siblings. They both laugh and Katie goes on and on about how Mike tricked her into loving him and how she has found true love with Henry. Henry comes outside and Katie goes in. Maddie asks her brother how much longer this is going to go on, with Henry and everyone lying to her. Henry explains that the last thing they want is to confuse Katie right now. He explains that the doctors say it might worsen her amnesia.

Little do they know that Margo has called Katie in one direction of the house and Lyla has called Mike in the other direction. Pretty soon, they meet right underneath the mistle-toe, leading to a kiss.

Nancy arrives at the Sndyer home and reads the Christmas story to Faith, Natalie, Parker, J.J., and Sage. While all this is going on, Lily starts to feel sick and heads upstairs. Holden follows her and enters the bathroom in just enough time for him to see Lily holding a positive pregnancy test! Bob and Kim arrive, saying that they have a present for Nancy. Everyone, including the Snyders, are happy to see Chris home for the holidays again. No, Chris tells them, not just for the holidays. For good.

As the camera makes a sweep across Oakdale and all the families enjoying dinner, the kids soon rush to the windows to discover that outside, it's snowing!! As they run outside to make snow angels, the camera pans above.

The picture fades and Helen Wagner appears, saying "From our family to yours...Merry Christmas! And may God bless you!"