Tabitha and Timmy are frightened by an angry scroll. The scroll reveals impending conflicts of love.
Pilar is confidant Antonio and Sheridan are coming home. Luis struggles to share in his mother's faith. Beth wants Luis back. While sailing towards Harmony, Sheridan has warm memories of Luis and Pilar. Brian is still uncertain about seeing his family.
Ivy plans to use a maid from Bermuda to expose Theresa's secret to Ethan. Theresa's surprising reaction to a gift worries Ethan. Chad fears his suspicions are right, while Ethan comes to the wrong conclusion. Whitney, Chad, and Theresa offer support to a jobless Ethan.
Due to the Christmas holiday, a special holiday episode aired in place of a regular episode. Programming will resume on Wednesday the 26th where Monday's show concluded.
The Bennetts decorate Tabitha's house for the holidays. Miguel wonders why Charity is not helping. He asks Kay and seems worried that his "Charity" is not acting like herself. Grace does not want to serve David with the annulment papers so close to Christmas. She then changes her mind when David shows up and tells him to sign them right away. David tries to convince Grace that she still loves him.
Pilar warns Theresa that Ivy knows all about her being pregnant with Julian's baby. The hotel maid from the resort in Bermuda identified Theresa as the woman in bed with Julian. Ivy wants to have a meeting with Ethan and Theresa, Chad and Whitney so she can drop the bombshell on them. Ivy even hired Sheila the maid to work in the Crane mansion. Simone and Jessica are trying to decide if Kay is still trying to get Miguel for herself. They cannot believe how generous Kay is acting toward Charity. Timmy is in the attic reading Pinocchio. He dreams of being a real boy, just like Pinocchio. Sam tells David to sign the papers so everyone can get on with their lives.
Rebecca and Julian have a tryst in the bushes at the Crane Estate. Rebecca tells Julian that she had the mansion beautifully decorated for Christmas. Rebecca is appalled that Ivy threw out her pink Christmas tree.
Ivy introduces the new maid, Shelia to Theresa. Ivy smiles at Theresa's torment. Ivy asks Theresa if she remembers Sheila, then she asks Julian. Pilar tries to fill in Sheila on the lives of some of the people in the Crane Mansion. She tells Sheila about Theresa in particular. She is hoping that Sheila will take pity on Theresa and keep Theresa's secret. Sheila states that she does not remember seeing Theresa at the resort. She tells Ivy that she is positive. Ivy is angry and wants to talk to Sheila alone. Pilar tells Theresa that this just bought her time. Her only hope of keeping Ethan is to tell him the truth. Miguel plans on meeting "Charity" at the Nutcracker ballet. "Charity" does not plan on showing up. Kay goes in her place.
The angel girl appears to Timmy. Tabitha tells the angel that she will not allow Timmy to become a real flesh and blood boy. Tabitha tries to grab the angel and she disappears away from her. Her parting words to Timmy is that there is hope. David stalls by saying he won't sign the annulment papers until he looks them over first. Ivy fires Sheila and Ethan asks his mother just what is going on. Ivy lies and gives Ethan a check for Sheridan's favorite charity instead. Ivy warns Theresa she knows her secret and it won't take long before she can't hide it from Ethan anymore. Theresa tells Whitney that she is going through with the abortion.
Pilar tries to stop Theresa from going out in the cold. As Pilar tries to grab her daughter's arm, Theresa's purse spills open. Pilar sees the card for the Harmony's Women's Clinic. Pilar puts it all together and realizes that her daughter is planning on having an abortion. Pilar asks Theresa to explain where she failed her as a mother. Theresa says that this decision is hers alone to make. She tries to get Pilar to see that the baby will ruin not just her life but Ethan and Luis' as well. Pilar cannot believe that Theresa is considering ending the baby's life. Pilar tells Theresa that Christmas is the time to think of birth. Pilar asks what will happen when Ethan and Luis find out that she had an abortion. Even though Pilar is heartbroken, Theresa leaves for the clinic.
Kay has a horrible nightmare that the real Charity escapes from her icy prison and comes looking for her. Kay dreams that Miguel is there watching the scene as Charity tries to smother Kay with a pillow as she tells Miguel about the "Charity" zombie Kay created with a spell. Kay starts to scream and Miguel comes into her room and wakes her from her nightmare. Kay hugs him as he comforts her. Miguel calls "Charity" and she gives him the brush off. She still claims to be sick and tells Miguel not to call her again. Kay goes to Charity's cave to be assured that she is still trapped in the ice. Kay is relieved to see that Charity is still there even thought she is unaware that Charity's hand can move.
Tabitha is delighted that the Bennett's are finally leaving her house to move into their new home. The Bennett's leave Tabitha's house decorated for the holidays, complete with glass angels. Tabitha begins to throw the decorations in a trash bag after the Bennett's leave. Timmy cautions her against it. He says that if someone were to see all the decorations gone, they may think Tabitha's a witch that does not like Christmas. He also says that Reese is especially suspicious of her. Tabitha relents and keeps the decorations up. Timmy is pleased because he enjoys the holidays and is filled with the Christmas spirit. He is also sure that his Christmas wish of becoming a real boy will happen this year. Tabitha tells him that if he does turn into a real boy, she will dance around with a Christmas wreath on her head. David and Ivy meet as Ivy goes over the next part of her plan with him. Ivy says she is planning a surprise that will tear apart Sam and Grace forever. David goes on about how kind and sweet and loving Grace is and that she surely does not deserve whatever Ivy is planning. Ivy is pleased to see that it seems David has fallen in love with Grace. Ivy goes over all her woes to David and says that she deserves to have Sam back. Ivy calls Grace a conniving witch. Ivy does not believe that anyone is really as good and kind as Grace pretends to be. David tries to get Ivy to leave Sam and Grace alone but Ivy will not hear of it. Ivy shows up at the Bennett's with a gift as David shows up to sign the annulment papers. Sam sees them together. Timmy informs Tabitha that Eve Russell called and left a message that they are to come to the hospital right away. Timmy believes it is because she has found a heart donor for him so he can be a real boy.
Timmy rushes to the hospital with Tabitha on his heels. Timmy is convinced that the phone message was from Eve. Little does he and Tabitha know that it was really Norma who had the call made. Norma is still trapped as a mental patient in Harmony Hospital. She still wants her revenge on both Tabitha and Timmy. Norma dresses up as Bette Davis from the old horror classic "Whatever Happened to Baby Jane." She dances and sings her way around the stage and then takes off after Tabitha and Timmy who are trying to make their escape. Tabitha is also in fear of being recognized as an escaped mental patient when she took off from the hospital a year ago.
Ethan takes Theresa to the orphanage to do some of Sheridan's charity work. Theresa gets emotional when she is there after seeing all the children. She calms one baby in particular and everyone tells her what a wonderful mother she will make.
Ivy and David show up at the Bennett's new house. Ivy tells Sam and Grace that she does not know what David is doing there but she came to give them a housewarming gift. Sam and Grace invite both Ivy and David inside. Before Sam and Grace unwrap Ivy's gift, they ask for another one. They ask her to leave Ethan and Theresa alone. They assure Ivy that they both knew Theresa since the day she was born and that she will be a fine wife for Ethan. Ivy lies and tells Sam and Grace she has given up on trying to interfere with Ethan and Theresa. She says that she does not interfere in anyone's love life anymore. The gift that Ivy brought over is a dessert that she encourages them to eat before it spoils. As Sam and Grace go to the kitchen, Ivy snidely tells David that the dessert it like Sam and Grace's marriage, it will go bad real soon. David is uneasy at hearing this, worried about what Ivy has in store for the couple next. Luis remembers how much Sheridan loved Christmas. He talks to Pilar and lights another candle for her. As he stands on the dock, he asks God to bring Sheridan back somehow. Brian and "Diana" sail closer to Harmony. Brian tells "Diana" about the poor little rich girl that his mother took under her wing. "Diana" in unaware that Brian is talking about little Sheridan Crane. As they get closer to Harmony, "Diana" is sure that their lives are about to change. Pilar goes to the orphanage when she hears that Theresa is there. She has hope of changing Theresa's mind about the abortion.