Lyla's still reeling from the revalation that Craig is alive. Overcome with happiness, she's soon brought back to reality once Margo explains that he's wanted for kidnapping. Since Craig was never technically in control of whether or not people thought he was dead, he can escape the fraud charges. But he's had Cabot for months and she's sure Rosanna will file charges. Later, Lyla tells Craig that he might be a wanted man before long. Still not giving up on getting Cabot back, Craig decides to hide out at the Lakeview.

Katie goes into work for her first day back. Kim assures her that she doesn't have to do this, but Katie asserts that she needs to get her mind off of things. Later, Katie overhears whispers. Supposedly, someone saw Crad and Carly come close to a kiss last week in the parking garage. Livid and hurt at the same time. At her mother's, she confides in Lyla that she fears Brad might have been having an affair with Carly. Lyla dismisses the tale as a rumor courtesy of an exaggerative co-worker. Plopping down on the seat beside her daughter, she suggests that maybe going to the New Year's Eve bash at Donovan's might be the fun time Katie needs to just forget about things.

Emily scrambles to throw together some last minute stories before running out of her office to meet Dusty to prepare for the NYE bash at his club. She neglects to realize that in one of the stacks of paper she handed her assistant was a mock-up of the story about Lucinda and Clark. Later, Emily gets a call from her printer to ask her to come give the paper a once-over before it goes into full print. Confident, Emily assures the man that she doesn't need to see it; she's sure the paper is just fine. As Emily ends the call, Dusty promises her that this is going to be a night she'll never forget. Meanwhile, Susan stays home with a bag of popcorn watching the ball drop over Times Square on TV. She's startled when Michael shows up at her door. He smiles and tells her that as much as she hates him, she doesn't need to be alone tonight; she needs a friend. Reluctantly, Susan lets him in.

Jade and Luke convince Lily and Holden to go out to Donovan's and ring in the new year right; they'll take care of the kids. Holden chuckles how weird it will be seeing Clark and Emma together at the bash. He still hasn't gotten used to the idea of Clark being around, he tells Lily. After a while, Noah appears at Donovan's with Carrie. Lily speaks with Noah and he gushes that he has hope for the new year, even if he and Luke weren't meant to be. Holden, meanwhile, notices Carrie's gleeful gaze upon seeing Will enter and assumes the two are a couple.

After entering the packed club, Casey thanks Alison for convincing him to come. Aaron tends to the bar while Alison meets up with Gwen and introduces her to her blind date for the evening: Casey. Gwen's reluctant given the fact that the first date wasn't all that, but after some coaching from Alison to get back into the game and let the past be the past, Gwen finally approaches Casey. While she watches the two laugh about something, Alison confides in Aaron that she thinks they might have actually gotten Casey back out of his shell again. Across the room, Will realizes that Gwen is there and decides to take an exit to avoid his future ex any discomfort. Instead, she follows him outside and asks if he signed the papers. He's fine with a divorce, he explains, but he's not going to be kept away from his daughter. Gwen promises that this is a fight that he'll lose, but Will dares her to just wait and see.

Neil comes into the room and advises Rosanna that they've been informed of Craig's whereabouts. He's right here in Oakdale. Her first instinct is to flee. Paul grunts that he'll take care of Craig. Rosanna still seems frightened of the man, recalling how he's the one behind the accident that left her in a coma. She can't let a man like that raise her child. Meanwhile, Barbara's flabbergasted to find Craig hiding out at the Lakeview. Although he's disguised by sunglasses and a fake beard, she can tell it's him. Finally, he reveals himself to her, but asks her to keep the fact that he's alive a secret. He tells her the story of James holding him captive and rescuing Cabot. Barbara asks if he has any leads on Johnny and is shocked when Craig informs her that he quit looking months ago. Wondering what brought the ruthless mission to an end, she eventually realizes that Cabot has substituted the void in Craig's life that was left by Johnny's absence.