In his penthouse, Jax embraced Chloe, but they were interrupted when Mike appeared at the door. Mike explained that he did not want to marry Gertrude, but Jax and Chloe convinced him to give it one try.
In her art studio, Liz refused to permit her grandmother to mistreat Jason. Jason left in an effort to give Liz and Audrey a chance to sort things out. After he had left, Audrey expressed her disappointment in her granddaughter, but Liz expressed equal disappointment in Audrey. Liz then offered to move out of Audrey's home and move into the art studio so that her grandmother would be unable to make decisions for her in the future.
Carly confronted Sonny at his penthouse and demanded that he help Jason. Sonny claimed to have done all that he could possibly do and told Carly that Jason would eventually come around. Sonny then insisted that the whole situation was about Carly and maintained that Jason would be better off without her. Carly, however, contended that Sonny was too arrogant to apologize to his friend. Sonny instructed Mrs. Quartermaine to leave and had Johnny accompany her to the elevator.
In the secret room, Faison forced Luke to reveal his true feelings for Felicia. When Faison left the room, Felicia became agitated, proclaiming that their kidnapper had plans to murder them. Luke attempted to comfort Felicia when she dissolved into tears, but Felicia was not assuaged. She shared Faison's story about his lost love at the nuclear laboratory and declared that Faison planned to kill them just as he had killed Robert and Anna. Gas began to seep into the room from an overhead unit, rendering Luke and Felicia very sleepy. Before they nodded off, Luke told Felicia that he'd meant what he'd said earlier when he'd told her that he loved her.
At the Port Charles Grill, Mike and Chloe practiced an evening with Gertrude as Ned, Jax, and Alexis watched from behind a partition. Chloe gave Mike pointers on how best to interact with her aunt. After the meal, Mike agreed to join the foursome's scheme. Appropriately enough, just as Mike had accepted, Gertrude entered the restaurant. After introductions, Gertrude joined Mike at his table, and the two appeared to get along well. When Gertrude was called away, Mike informed the foursome that his rates had just skyrocketed.
Also at the Grill, A.J., Alan, and Monica waited for Carly to arrive. Monica was very irritated by Carly's tardiness, and as she bickered with her son, Edward and Lila arrived. The Quartermaines were all arguing when Edward spotted Ned. He and Lila departed, leaving A.J. and Monica to continue their heated discussion. Carly finally arrived, but Alan and Monica had already eaten and quickly left. A.J. and Carly proceeded with Quartermaine tradition and bickered about anything and everything.
On the docks, Sonny encountered Liz and asked about Jason's condition. Liz provided the requisite details then headed off. After she was gone, Hannah spied her former lover and asked him to stay and talk to her. She again professed her love for Sonny and pleaded for a chance to prove it. Sonny responded by telling Hannah that he did not care about her, and he told her never to speak to him again.
Liz located Jason and returned him to her studio. Jason informed Liz that he had to leave because he complicated her life. Liz replied that she made her own decisions and urged Jason not to tell her what to do.
Jax and Alexis discussed her upcoming night with Ned and her excitement about it. He told her he didn't mind her going out and about because once his parents got there, all of her time would be taken up with family activities. She told him that was fine because she was very much looking forward to a Jacks family Christmas.
Chloe and Ned were at L&B, and he was prepping her for his upcoming absence. She told him she wanted to be sure he had a great time, and he asked her where she had been four marriages ago. She smiled and said, "Probably at a Whitesnake concert." Jax called and invited her out for the afternoon.
Emily called Jason and left a message saying she missed him and would like to see him. Carly entered and heard most of the message then asked Emily if maybe Jason was sick of hearing about the teenage wasteland she called a life. Emily shot back that she was sure Carly knew where Jason was because she did little but dog his every step. Carly told her she wouldn't even justify that with a response, but she would say that Jason was where he could pick up the phone at any time and call her if he wanted to talk to her. Emily stomped out, and A.J. entered.
A.J. suggested that perhaps Carly's recent foul moods were because Jason had cut her off. He then informed her that the rules of her marriage were about to change. Carly asked A.J. what more he wanted. She said that he had Michael, and that was what he really wanted. A.J. told her that either she started acting like the perfect wife again, or he would divorce her, get sole custody of Michael, and lock her away in Ferncliff. She told him that even if she played along, all he'd have would be a wife that didn't even like him. He told her that liking him wasn't a condition of their marriage.
Edward entered just then and commented on A.J. and Carly being the perfect Quartermaine couple. They began to discuss the party A.J. and Carly were going to that night for business. Edward said he was happy to not be going and to be spending the evening with Lila. Monica and Alan entered and said there was no way they were going. Carly said that she was looking forward to it. After the guys left, Monica started griping at Carly about her attitude, and Carly let it be known that she didn't even like being there.
Monica told Carly that everyone in the house was as anxious for her to be gone as she was to go. Carly said that at least they agreed on something then asked Monica what she suggested they do about it. Monica said she didn't know yet, but until she thought of something, Carly had better sit tight and not hurt A.J. She warned Carly that she could be either her ally or her worst nightmare. Carly called that fine but said that Monica had better be fast about it because patience was not Carly's strong suit. Later, Monica tried with only moderate success to convince Alan that A.J. and Carly's marriage was a disaster that needed to end.
Roy entered the Spencer home to see the room for rent, and Laura commented on his punctuality. Roy told her how nice and homey the house was but said he couldn't see Luke in it. Laura replied that Luke couldn't, either, which was part of the problem. She showed him the room and reminisced about how Lucky had used the window to leave more than the door. Roy said it had to have been rough the past year when Lucky had moved out, and Laura said that rough had just been beginning then, but it was getting better.
Lulu entered, and Roy was wonderful and charming to her and they ended up in a tea party. He and Laura talked about roads not taken just as Bobbie arrived to give Laura a birthday present. After she left, Roy asked if she stopped by often and remarked that he was surprised that they were close after their history. They smiled about life being full of surprises. He told her he'd like to take the room, and they agreed he would move in immediately.
Just then, Stefan knocked on the door to give Laura a birthday bouquet of roses. He said he was sorry. He hadn't known she'd had guests. She said Roy was not a guest; he was her new roommate. Stefan looked like he was about to flip out.
Mac and Maxie were looking for Georgie's shoe while Felicia looked on, frantically suggesting that they look behind the winged chair. Of course, they couldn't hear her, and she became increasingly frustrated. Maxie asked when Mom was returning, and Mac assured her it would be soon; Felicia kept saying, "I'm right here," but they couldn't hear. They left, and she saw a doorway with bright light shining through, and Luke appeared there and told her it was time. She argued that she wanted to stay there with her family, and he told her that wasn't a choice. She went to him as Mac and the girls reentered the room. Felicia looked back regretfully then went with Luke.
Felicia and Luke awoke and realized that Faison had only gassed the room with a sleeping drug, not a killing drug. Felicia started freaking out about how they were going to die, and Luke told her that as long as they were alive, they had a chance. They found a vent and got all excited, thinking they had found a way out, but it was blocked up behind the vent. Faison entered and commented that they had found his gift: something to do if they got bored.
Felicia asked Faison what he wanted, and he told her it was to see them both dead. She asked him who she was to believe, the man before her who said he wanted her to die or the one in the frilly room who had professed his undying love for her. He said it really didn't matter anymore. She said that given the choice between death and a life with him, she'd choose death. He said that he shared that sentiment, and he left.
Felicia and Luke started talking about how they were going to die and feeling each other's face. She asked him if he ever wondered about "what if's" and he said he did all the time, "What if I'd killed Faison when I had the chance," and such. She said no, that she meant in the grander scheme of things. If there had been no Frisco, no Mac, and no kids and he'd met her on the street, she wondered if he would... "Know you?" he filled in. And he swore it might have taken him a minute because he was slow on the uptake, but he would have known her the minute he'd fallen into those baby blues. Then they started kissing deeply, making out and cheating on Mac.
Ned and Alexis met at L&B, and she commented on the new décor. Ned said he liked the energy of the room and admitted that Chloe had a funky style of decorating. Alexis asked if she could decorate her own office because she couldn't work in a funky room. She had some papers about Miguel for him to sign, and he put his mark on her instead, with a big kiss.
Chloe arrived to see Jax with a fat bag of presents. He asked if there was anything in there for him, and she smacked his hand away. They made plans to meet later in the day and also to spend New Year's Eve together.
Ned asked Juan about his intentions toward Emily, and Juan went into a heartfelt speech about how Emily made him a good person and how much he loved her. Ned told her he'd better not be lying to him, or Ned would cut off his arms, legs, ears, and nose.
Jason and Liz were at the studio. She examined his wound and determined that it was healing, but he was more concerned with her argument with Audrey. Liz explained that she had to be her own person and not let Audrey or anyone else tell her how to live her life. Later, she was sketching fruit as he lifted a heavy book to build up the injured arm. Liz scolded him about doing too much then left for the diner to get food.
Meanwhile, Nikolas had gone to the diner to look for Liz. He chatted briefly with Tammy, who explained that Liz wasn't there, and as he turned to go, he encountered Taggert. They discussed Jason's whereabouts, and Taggert gave Nikolas a phone number to call if he should hear anything about Jason. Nikolas insisted that he was "no spy," but he put the slip of paper into his pocket thoughtfully.
Liz entered the diner next, and Tammy was just explaining that Nikolas had been looking for her when he reappeared. He confronted her once again about the Jason thing, but she wouldn't hear any of it. He reminded her that he'd taken a bullet meant for Jason and about Lucky, but once again, she told him to back off. He did so, a little, and invited her to go to Laura's with him, but she declined, warning him not to try to tell her what to do. She left the diner with the sack of food.
Back at the studio, Jason was just walking in the door. He tried to get his coat off but wasn't successful before Liz returned with the lunch and a little Christmas tree in a bucket. Jason could see that something was troubling her, and she mentioned meeting Nikolas at the diner but didn't want to discuss it. Liz was chatting on about Christmases past when she suddenly noticed that Jason had his jacket on. She gave him a lecture about doing too much then made a deal -- she'd help him off with the jacket if he'd help her decorate the tree. They decorated the tree with paper chains and were companionable with one another.
At the hospital, Audrey was aggravated, and Bobbie was cranky as Tony tried to cheer her up. He was nostalgic for the years he'd played Santa on the children's ward, and Bobbie was supportive of his resuming the role. He exited, and Audrey asked Bobbie about Jason, saying that Liz was "involved" with him. Bobbie questioned what she meant by "involved," and Audrey explained about overhearing Nikolas' accusations and about confronting Liz and Jason at the studio.
Audrey told Bobbie that Liz was moving out, and Bobbie began to reassure her as Audrey stated that she didn't want Liz involved with "Jason's sort." Bobbie was put out by the comment and explained that arrests didn't make people evil and that some people deserved a new start. Roy entered unseen just in time to overhear everything. He was there about some worker's compensation paperwork and apologized for interrupting. Just then, Amy showed up. She exclaimed over Roy, who remembered her from long before, and Bobbie dragged her away as she made comments about Bobbie and Roy's past relationship. Tony and Roy talked about Roy's friend in the worker's comp case, and Roy exited after wishing Bobbie a merry Christmas.
Juan was cleaning at the new L&B headquarters, singing "Silent Night" as he did so. Emily listened from the doorway, and he stopped when he saw her. She thought he had a wonderful talent and gift and wanted him to sing for Ned, but he explained that he wanted to be known as an "amazing young business phenom" rather than as Miguel's son. He was a bit huffy but soon calmed down and wanted to demonstrate the new sound system Ned had installed.
Juan and Emily turned up the music and began to dance when Taggert arrived at the door. He said he was "getting 'caught red-handed' vibes." They protested that they were not doing anything wrong, and Taggert let it go. He gave Juan his Christmas present -- a key to their apartment at Bobbie's brownstone. They chatted briefly about the upcoming General Hospital Christmas party, and after Taggert left, Juan rejoiced that he'd be staying in Part Charles.
At Laura's house, Laura and Roy were making arrangements for him to move in when Stefan arrived, bearing roses for her birthday. The men introduced themselves to one another, and Roy departed. Stefan was unhappy about Roy moving in, and Laura tried to explain their relationship. Stefan, upon learning where Roy had been, commented, "He's been in prison for twenty years -- he must be a friend of Luke's." Laura insisted that she knew what she was doing, and Stefan interpreted that as proof that she'd given up on having a life with him.
Laura explained that she believed he'd been completely honest with her when, in fact, he'd been lying; she still loved him but had not yet reached any conclusion about their relationship. Stefan insisted that he was only trying to protect her, but Laura wondered if she could ever trust him -- she did not know his heart. He replied that his heart was the same as when they'd first met, when he'd lied to protect her on the island. He told her he loved her, wished her a happy birthday, and exited.
Lesley entered next, bearing a big cake. Laura explained about the flowers from Stefan, about how he and Roy had met, and the ensuing reaction of hurt and anger on Stefan's part. Laura said that she was only trying to fill Lucky's empty room, and she began to cry. Nikolas arrived just then with a present, and the three of them shared a group hug. Amy was last on the scene, telling about meeting Roy at the hospital and joking about sharing her apartment with him as Lesley lit the candles on the cake. Lulu told her mother to make a wish, and Laura blew out the candles.
At Faison's hideout, Luke and Felicia were kissing passionately when she suddenly broke off -- she apologized, but she couldn't be unfaithful to Mac. Luke was reassuring her when he had a realization and began kissing her again, forcing her down onto the cot. He whispered to Felicia to fight him, to "spoil the show for Faison," and she did so, crying out for him to stop. Faison entered the room with gun drawn, demanding that Luke take his hands off Felicia.
Faison fired one shot into the air, advising that it was the last warning shot, and went to shoot Luke just as Felicia dove in front of him. Felicia was shot in the shoulder, and Faison said that he was sorry but that she would soon die anyway. He told Luke to move away from her, and Luke screamed at him to go to hell just as Mac entered behind Faison. Mac made Faison drop the gun, and the two wrestled as Luke carried Felicia from the room. Mac pinned Faison on the cot, handcuffed him, and pushed him out the door to where Luke waited with Felicia. A video camera had recorded everything and began to rewind.
At the hospital, Bobbie and Luke briefly discussed his adventure with Felicia, and she told him that Jerry had jumped bail. Bobbie mentioned Christmas, and Luke was momentarily confused as to what day it was then leaped up, saying he had someplace to be.
Mike and Gertrude were at the hotel restaurant, and he was flirting shamelessly with her, trying to impress her with a fake phone call on "his" cell phone, which was actually borrowed from Chloe. Ned, Chloe, Alexis, and Jax looked on in approval as Gertrude invited Mike to join her at her table for dinner. Tammy entered, in search of a gift certificate for Mike, and spied Mike and Gertrude as they shared a toast.
Jax spotted Tammy glowering at the door and intervened as she was about to approach Mike's table. Jax explained that Mike was at a very important business meeting involving "serious money," but Tammy was skeptical. "Trust me," Jax insisted, but Tammy didn't, and she left. Mike spoke up as Jax passed and asked if everything was all right with "the blonde lady," and Jax told him that there was no problem. After Jax had gone back to his own table, Mike explained that Jax had an eye for the ladies and warned her that Jax "is a well-known Lothario and could easily destroy your niece's marriage."
Later, at Jax's apartment, Jax gave Chloe her Christmas gift -- a little replica of their wishing fountain, and inside was a gold bracelet. She was pleased, and gave him her gift, which turned out to be a little boat model. She said it was one he couldn't capsize, but he was not amused and got very quiet, explaining that "there's no way she could have known." She pressed for an explanation of his reaction to her gift, so he told her that he and Brenda had been married on a yacht, and later, his parents had given her a little one as a gift and memento -- they had previously kept it on the mantelpiece. Chloe was upset, took back her gift, wished Jax a good Christmas, and left quickly. As she waited for the elevator, she began to cry.
At Laura's house, Luke was at the door with presents. He entered, and he and Laura chatted awkwardly about the decorations, the angel, past Christmases, and Lucky. Lulu walked in from upstairs, and she and Luke went over her letter to Santa then she gave him a present for under his tree. He and Laura exchanged teary hugs, and he left. Later, Laura was crying, looking at pictures of Lucky, when Stefan arrived. He wanted to invite Laura and Lulu to Wyndemere for Christmas dinner with Nikolas. Laura told him that she would never have gotten through the past year without his support and to remember that she loved him, no matter how things turned out. She accepted his invitation.
At Kelly's Diner, Larkin was sitting at a table as Bobbie entered. He jumped up and confronted her about Jerry, demanding to know if she knew where he was, threatening "how would Lucas deal with a mother in prison?" Roy entered in time to hear the threat and immediately jumped to Bobbie's defense, telling Larkin not to threaten her. Larkin defended himself and started to get in Roy's face, threatening him with a return to prison, when Bobbie intervened.
Later, Roy and Luke were at Luke's club, and Luke told him all about how Felicia had been shot, how they'd almost made love, and how she'd decided she loved her husband. Roy was sympathetic.
At the diner, Tammy was behind the counter when Mike walked in. She gave him a bit of a hard time about the "serious money," and when he asked her if they were still on for New Year's Eve, she said that they were and that "this isn't the millennium to stand [her] up."
Hannah slipped out the door of the diner in time to see Sonny walking past. She wished him a merry Christmas, and he replied, " Not this year."
Jason and Liz were fooling with Michael's globe, playing the "tell one fact about..." game. He knew some facts about Ethiopia, which impressed her. She couldn't come up with any about his choice for her -- Uzbekistan.
Jax hung up the phone and informed Alexis that his parents had decided to delay their arrival by a day. Alexis was going just a little overboard with the decorations in an attempt to make things festive for Jax's parents. She felt bad about the whole Jerry thing and wanted them to have a good Christmas. She changed the subject by asking Jax what had happened with Chloe. Jax told her about Chloe's gift to him.
At Kelly's, Ned noticed that Chloe looked a little down and asked what was wrong. She confessed that she and Jax had exchanged Christmas presents. She had loved his gift to her, but she'd managed to give him the perfect reminder of Brenda.
Emily arrived at Kelly's just as Juan was walking downstairs. She was in a rush to leave so that they wouldn't be late for the General Hospital Christmas party, but Juan wanted to see her outfit before they left. Emily reluctantly modeled her elf costume for Juan at his insistence and was rewarded with a kiss from her boyfriend under the mistletoe.
At GH, Bobbie was delighted to give Tony the happy news that he had been reinstated as Santa. Tony was thrilled and thanked Bobbie. He rushed off to change. As Tony left, Sonny arrived. He explained that he was there to see Stefan. Bobbie let Stefan know that Sonny was there and then left to give Tony his Santa beard.
As Sonny waited for Stefan, Carly arrived with Michael. She stopped to talk to Sonny briefly and was disappointed to learn that Jason was not there.
At Luke's, Luke was in his office when he heard a knock on the door. He told the person to go away but changed his mind when he heard Liz's voice. He invited her in and happily accepted her gift of brownies. She noticed that he was sad and offered to try to make him laugh by showing him her elf costume. Luke couldn't help but chuckle at the costume and correctly deduced that she was working the GH Christmas party. Liz nodded and asked if there was any chance he wanted to be her date. Luke said that that was the best offer he had had that millennium, but politely declined. He wasn't very good with Christmas parties.
Liz told Luke that she understood. She'd thought about staying home, too. She didn't really feel like going out and plastering a smile on her face, either, especially without Lucky there. She still wasn't sure that she could pull it off. Luke assured her that she could. She'd made his son happy when nothing else had been able to. Lucky had always said that she was the most courageous person he knew. Luke knew that it would be nothing.
Liz said that she still missed Lucky "so much." Sometimes it still hurt to breathe. Luke said that he knew. Liz gave Luke a hug then left for the party. Once Liz was gone, Luke walked over to his desk, picked up a picture of Lucky, and looked at it sadly. He looked up and whispered, "Merry Christmas, Cowboy."
Mac and Felicia were preparing for Christmas. Mac said that he thought he might have a present that would take her mind off of missing the girls. He opened the door, and the girls ran in, to Felicia's delight. Hugs and kisses abounded as Felicia was reunited with her daughters.
At the Port Charles jail, a visitor arrived for Faison. The visitor was instructed to deliver a Christmas present to Mac and Felicia.
Chloe told Ned that Jax had always been very open and honest about his feelings for Brenda, but she'd never realized how much of a presence Brenda still was in his life until he'd opened the Christmas present. She could tell by the look on Jax's face that his feelings for Brenda were still very powerful. She couldn't compete with a memory, and she didn't want to push herself on Jax. She thought maybe she needed to back off. Ned said that he knew just what she and Jax needed. He got up to leave and dragged a protesting Chloe with him.
Meanwhile, Juan and Emily were assisting Tammy in the placement of the Christmas tree. Taggert arrived and asked Juan if he was all ready to move. Juan confessed that he hadn't had time because he was going to the Christmas party at GH. Taggert said that he was going, as well, and they decided to leave together. Dara arrived just as they were leaving and tried to convince Taggert that they needed to review his testimony for the Helena Cassadine trial. The threesome convinced Dara that she, too, needed to go to the GH Christmas party.
Jax told Alexis about Chloe's Christmas gift. He felt very bad that he'd ruined Chloe's surprise. He'd explained everything to Chloe, but still, the damage had been done. All she'd wanted to do had been to make him happy, and instead, she thought she had ruined his day. Alexis suggested to Jax that he and Chloe needed to get away alone. They were always sneaking around and pretending to be something they weren't. Jax laughed and said that she was probably right.
The Quartermaines arrived at GH for the Christmas party. As they wandered toward the party location, Dave Koz and his band arrived. Amy greeted Dave Koz and reminded him, like she did every year, that they'd met the year before. Taggert, Emily, Juan, and Dara arrived. They also saw Dave Koz. Juan boldly walked up to him and introduced himself. Juan invited him to lunch on the pretense of discussing his future with L&B records, but Mr. Koz politely declined. They all left to go to the party.
Nikolas arrived along with Lulu and Lesley. Amy took Lulu and Lesley to the party, but Nikolas remained in the lobby. Liz arrived with apologies to Audrey for being late. Audrey told her that she needed to go to the board room immediately. Liz started to rush off, but Nikolas stopped her. He asked if she had a minute. When she said that she didn't, he told her that it was important. Liz stopped and turned to look at him with a "this had better be good" look on her face.
At Kelly's, Tammy was cleaning up when Mike arrived. She cheerily wished him a merry Christmas, and he returned the sentiment. Tammy explained that everyone else was at the GH Christmas party but that she had offered to stay and close up. Mike surprised Tammy with a copy of her favorite movie, Gone With the Wind. Tammy was delighted with the gift.
Luke was in his office, talking to himself, when Roy arrived. Roy explained that he was there to make a coffee delivery and said that he was surprised to find Luke there. Luke said that he didn't feel like celebrating and good-naturedly told Roy to go away. Roy said that he had to tell Luke something. He confessed that he was renting a room from Laura.
At the Scropio residence, a mysterious figure carefully placed a wrapped package under the Christmas tree.
At GH, Liz blew Nikolas off as Felicia and the girls arrived at the hospital. As Liz once again tried to rush off to the board room, she heard Jason call her name. She was happy to see him up and about. He explained that he just wanted to be able to watch Michael enjoy the party from a distance. He teased her about her costume and playfully stole her hat. Nikolas watched in disgust as Liz tried to get her hat back from Jason.
Unable to take it any longer, Nikolas grabbed Jason and told him to leave Liz alone. Liz pulled Nikolas off Jason and told him to stay out of it. Nikolas wasn't anywhere near ready to let it go and lunged at Jason again. Jason told Nikolas to stay out of it, but Nikolas didn't listen. Carly walked off of the elevator just as Nikolas screamed at Jason that he didn't own Liz just because he was sleeping with her, which caused Jason to punch Nikolas.
Nikolas and Jason continued to fight until Sonny and Stefan pulled them apart. Stefan was shocked at Nikolas' behavior, but Nikolas continued to try to fight with Jason. Liz told Nikolas that he had no right to tell her what to do. Jason said that he was going to leave, and Liz said that she was going with him.
Audrey started to protest, but Liz turned and said that she didn't care what any of them thought. It was her life. With that, Liz and Jason got onto to the elevator with Nikolas screaming after Liz that she wouldn't have a life when Jason was through with her. Santa arrived as the stunned onlookers watched Jason and Liz go.
Luke was shocked to hear that Laura was renting out a room. Roy explained that he thought that Laura was just trying to be independent. He offered to not take the room if it bothered Luke, but Luke said that it was fine. Roy was relieved, since he really liked the homey feel of the house. And he loved Lulu.
Luke's face softened at the mention of Lulu. He told Roy that it actually might be good for him to be there to watch over Laura and Lulu. Roy said that Lulu had to be missing her big brother that year. Luke nodded sadly. Roy wished Luke a merry Christmas and left him alone. Luke sat in his chair and stared at Lucky's picture.
Mike was touched by Tammy's gift, dinner at the Port Charles Grill, but explained that he never ate in a restaurant on Christmas Eve. It was his personal belief that no one should have to work on Christmas Eve, so he made it a point never to go out to eat that night. Tammy liked his reasons and was even happier when he invited her to join him for dinner.
Ned and Chloe arrived at the Jackses'. Chloe was clearly uncomfortable and told Jax that they probably wouldn't stay long. Meanwhile, Alexis was pumping Ned for information about her gift. Noticing the elaborate decorations, Ned asked Alexis to help her decorate the gatehouse. Before they could protest, Jax and Chloe were alone.
Jax and Chloe started to speak at the same time and then stopped. Jax let Chloe go first. She explained that she thought Ned and Alexis leaving was a setup. Jax apologized for his reaction to her gift. There was no way that she could have known. Chloe said that she understood his feelings for Brenda, and she understood if he needed some time. Jax said that he would always have feelings for Brenda, but he would never use that as an excuse to stop living his life. He promised Chloe that his past with Brenda would not get in the way of his feelings for her. They kissed.
At GH, Alan was reading the Christmas story from the Bible with background music supplied by Dave Koz. As he finished reading, he turned the festivities over to Santa, who began to hand out gifts amidst cheers from the children. He called for help from his elves. Emily jumped up and asked Juan if he wanted to help. Juan readily agreed but noticed that Emily looked distracted. Emily confessed that she was more than a little surprised about Liz and Jason. She was also a little hurt that neither of them had told her.
The "outing" of the Jason/Liz romance was the talk of the Christmas party. Bobbie walked over to Carly and offered her a comforting hug. Carly was understandably upset at the news that Jason and Liz were sleeping together. Alan and Monica discussed whether or not they should talk to Jason, but decided against it. Meanwhile, Stefan tried to talk to Nikolas, but Nikolas was still determined to talk to Liz.
While "Have Yourself a Merry Little Christmas" played, the Quartermaines shared Christmas together. The mixed marrieds were together and happy; Jax and Chloe shared a kiss while Ned and Alexis did the same. Emily and Juan shared a kiss under the mistletoe. Bobbie was alone with a gift that Jerry had delivered to the hospital. She couldn't help but look a little sad as she ate her red licorice. Roy happened upon Hannah on the docks and gathered her up into a comforting hug.
Alone, Sonny stared out the window of his penthouse and watched the snow fall. Tammy and Mike left together happily, arm in arm, just as Nikolas arrived at Kelly's to look for Liz. At the art studio, Liz presented Jason with a Christmas gift and a kiss on the cheek. Jason was clearly touched by the gesture. Stefan arrived at Laura's with her Christmas gift. He was saddened when no one answered his knock. The reunited Scorpios were happily gathered around the tree.