In Theresa's room, she and Whitney are discussing Ethan. She said that it felt good to see her scarf around Ethan's neck. She just wishes that she could have given him his present in person. Whitney tells her that Gwen is on to her, but Theresa says that it doesn't matter because Gwen doesn't have any proof that she gave Ethan the scarf or how she feels about Ethan. Whitney tells Theresa that Luis won't like her getting involved with Ethan. Theresa said that he will come around in time. Whitney tells Theresa that she got away with not producing a boyfriend at the tree-lighting, but the scam won't last forever. Gwen will eventually want to met the boyfriend, and then she will know that it is Ethan. Theresa said that it is her destiny to be with Ethan.
Gwen and Ethan are at the book cafe. Gwen gives him back the necklace that he gave her for Christmas. She said that she only accepted it because she didn't want to spoil Christmas. She tells him that she loves him. She says that she is not being jealous or insecure, and he needs to realize this before they can go any further with their relationship. She says they have to get the situation with Theresa settled. Ethan wants to forget about Theresa, and he does believe that she is involved with someone. He goes on to say that Theresa was going to introduce him, but the fire broke out. Gwen says that it was mighty convenient for Theresa. Ethan wants to know if she thinks that Theresa started the fire. Gwen said that she wouldn't put it past her. Ethan explains that Miguel could have been killed. Gwen says that she needs to see the invisible boyfriend before they could move on. Ethan says that if it is that important to her, he will have Theresa produce the boyfriend. Ethan and Gwen are taking a walk and Ethan has an idea. He says that there is one night of the year when you get together with someone you are dating, even if it's a casual relationship. He said that he would invite Theresa and her boyfriend to join them for New Year's Eve.
Luis and Pilar are in the living room. Pilar has brought presents for Antonio and Martin. She said that she thought that one of them would be home for Christmas this year. Luis tells her that she thinks that Martin will be home every Christmas. She tells Luis that she has to go to work. Sheridan is outside , unsure of whether to ring the bell, or not. Before she can decide, Luis comes outside. He tells her that she missed his mother, but she says that she came to see him. She gives him a present. He tells her that he doesn't have anything to give her. She tells him that they are slides from pictures that she took when she was in Spain. They are pictures of places that were special to her when she was there. He tells her that he would probably really enjoy Spain with a guide. They look at each other, and the phone rings. It's business so Sheridan leaves. Sam tells Luis that he heard that Martin had left Santa Fe and was heading East toward New England. Luis says that his father would not be crazy enough to come back to Harmony, after everything that he had done. He said if he did, he would find out everything that he needed to before he let him go.
Julian brings Martin some breakfast. He has Martin locked in a basement at the Crane Mansion. Martin tells him that he can't keep him locked up forever. Julian offers to call Luis for him, or better yet Sam Bennett. He tells him that he has a long list of crimes that Martin has committed over the years. Martin stops him from making the calls. He tell Martin that he may as well get comfortable.
Grace is having a dream about Sam and Ivy kissing. She starts saying Ivy in her sleep. She tells him about the dream. She says that she is not worried about Ivy and him. Sam says that they shouldn't attend anymore of the Crane's parties, because he and TC aren't comfortable at them. She asks him if he is trying to avoid Ivy, but then tells him that she was only joking. She said that she didn't need Ivy Crane or her parties, she had her family and friends. Meanwhile at the Crane Mansion, Pilar and Ivy are discussing plans for a New Year's Eve Party. Pilar tells Ivy that she doesn't need to invite the Bennetts, because she is sure that Sam won't attend anymore given by her or ones that she will be attending after what happened at the Christmas party. She tells Ivy that Sam won't do anything to hurt Grace. Ivy calls Millicent and asks her to plan a party for New Years Eve, but they will say that it is a party for Dr. Russell's good work at the hospital. She says that the Bennetts must be invited, and must not know that she will be attending. They just need to know that it is a party for their good friend. She tells Millicent to place her at the table with the Russells and the Bennetts.
At Tabitha's house, Tabitha is complaining to Timmy how she hasn't got her powers back and that her friends in the basement were getting upset. She then throws away all the Christmas decorations. Timmy suggests that they take a trip to Hollywood, but Tabitha doesn't want to go. She says that they are already corrupt. Timmy wants Tabitha to lock Fluffy up in the basement. He decides to look in one of Tabitha's books , but many pages are blank. When he asks Tabitha about this, she doesn't know why the pages are blank. She tells Timmy to go make a pitcher of Martimmies. He accidentally spills the drink of the book, and the book catches on fire. Writing then appears on the blank pages. Tabitha says that someone will die on the first day of the Millennium, and she knows who it will be. She says that the person is Charity.
Whitney and Theresa arrive at the Book Cafe, and are seated at the table that was formerly occupied by Gwen and Ethan. Beth tells them that she is happy to see them. She then proceeds to tell them about the former occupants of the table. She tells them that Girl gave her boyfriend back the present that he gave her for Christmas. She says that she guess money doesn't buy happiness. She tells them that it was Ethan Crane. Theresa is delighted that Ethan and Gwen have broken up. Whitney says that it doesn't mean that they are finished. Theresa doesn't like the idea of Ethan spending New Year's Eve alone, and thinks about asking him out. She says that she read somewhere that whoever arms are around you on New Year's Eve at Midnight is the person that you will be with all year. She says that maybe they will be together forever. Ethan enters as they are about to leave. Ethan asks Theresa if she was busy on New Year's Eve. She said that she was hoping that her boyfriend would ask her out. She said that her boyfriend had been involved in something, but was finally free of what was keeping them apart. She said that she was really hoping that they could get together. Ethan asks her if she would like to spend New Year's Eve with him. Theresa shouts that she would love to. Ethan tells her that she and her boyfriend could join him and Gwen at the Seascape Restaurant and make it a foursome. Theresa looks stunned.
Julian is on the phone talking to Alastair. He tells him that he had nothing to worry about because everything was under control. He said that Martin was still in Harmony, but he was where he could keep an eye on him. He said that Martin was in the basement locked away on the other side of the mansion where no one would ever find him. Pilar has a toolbox and is at the basement door ready to unlock the door.
Theresa tries to worm her way out of accepting Ethan's invitation for a double date on New Year's Eve. Alistair warns his son that keeping Martin captive in the basement is a boneheaded idea which is bound to backfire. Sheridan falls into a reverie about her stormy relationship with Luis and how it seems to be evolving into something warm and wonderful. Meanwhile, Hank encourages Luis to start spending more time with Beth because they're perfect for one another. Julian prevents Pilar from stumbling over Martin just in the nick of time, then informs his housekeeper that the basement is off limits to the entire domestic staff until further notice. Luis is unable to summon up much enthusiasm when Hank lays out his plan for wooing and winning Sheridan's heart. Ethan persuades his favorite aunt to join him and his guests on December 31st. When Ethan suggests that she invite the man she would most like to kiss at the stroke of midnight, Sheridan blushes to realize that her mind immediately flitted to Luis. Whitney prods a distraught Theresa to confess everything to Ethan and be done with it. Sheridan is flustered when Hank eagerly accepts the invitation she meant for Luis.
Tabitha is convinced Miguel and Charity are the ones who will die on New Year's Eve. Tabitha sets out to make sure the prophecy comes true by encouraging Miguel and Charity to be in a public place on New Year's Eve, thereby making it easier for Tabitha to kill them. To Tabitha's chagrin, Miguel says it's impossible for him and Charity to go out that night.
Orville is surprised Eve doesn't know the secret about Chad Harris. Before he can fill her in, Grace interrupts. Thinking of her own ambiguous past, Grace encourages Orville to tell Chad what he knows about him. Orville agrees. Eve is relieved when Orville seemingly becomes confused again. Later, Chad bares his soul to a "sleeping" Orville.
Simone is surprised by Kay's new upbeat attitude. Kay believes she will win Miguel's love on New Year's Eve. She hopes to celebrate the New Year alone with Miguel, playing games like they've always done in the past. Kay plots to be in Miguel's arms at midnight since she read that if you're in a man's arms at midnight on New Year's Eve, you will be with that man romantically for the rest of the year.
Sheridan is stunned when she accidentally asks Hank out for New Year's Eve instead of Luis. Sheridan is slightly bothered when she learns Beth will be spending New Year's Eve with Luis at the Youth Center party. Sheridan forces a smile when Beth expresses her hopes of getting closer to Luis.
Ivy is desperate to be with Sam on New Year's, despite Pilar's warnings. Ivy initiates a plan to trick the Bennetts and the Russells into spending New Year's Eve with her.
All of Harmony gets ready for New Year's Eve festivities. Jessica watches in amazement as the other female Bennetts rush about to impress their men for the special evening. Kay swears to Simone she's going to give up her pursuit of Miguel if she is not in his arms at midnight.
To Timmy's horror, Tabitha reveals how she's going to kill Charity she's going to behead her.
Eve is unhappy to see Chad working at the Youth Center party. Whitney promises to keep an eye on Simone.
A confident Theresa assures Whitney that fate will come through for her tonight. Meanwhile, Ethan and Gwen plan to ring in the New Year by getting engaged as soon as they clear up the Theresa situation. Ethan is sure Theresa will show up with a boyfriend, while Gwen is sure Theresa will be exposed as a liar.
Gwen is shocked when Sheridan reveals how she tried to ask Luis out, but accidentally asked out Hank. Sheridan shrugs that Luis probably wouldn't have gone out with her anyway. Sheridan surprises Luis by providing catering for the Youth Center party. Luis and Sheridan share a romantic dance.
Pilar tries to stop Ivy from going through with her plan to be with Sam. She tells Ivy she will end up destroying her entire family if she continues to pursue him. Ivy expresses her desire for passion in her life and is determined to recapture the love she gave up so many years ago. She vows to win Sam back. At the same time, Sam and TC are happy to be attending the dinner in Eve's honor and not another Crane party. The two men do not suspect the surprise Ivy has in store for them.
Julian tells his father no one will hear from Martin again after tonight. Meanwhile, Martin escapes from the basement, ready to seek revenge on Julian.
Today's installment of Passions featured flashbacks of the show's first few months on the air to help win new viewers and refresh the memory of existing viewers.