Brooke announced her and Ridge's engagement to Katie, who in turn confided in Brooke about Katie's relationship with Wyatt. The confession made Katie think about whether there was more to the relationship than bedroom pizza deliveries. Ridge told Bill to move on because Brooke had, and Ridge was puzzled by Bill's ambivalence toward Brooke's engagement to Ridge. Steffy told Bill about her pregnancy, and he gave her a DNA sample for a paternity test. Eric held a Christmas celebration at his house, and Ridge surprised Brooke by flying Donna in for the holiday.
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Internal Affairs cleared J.J. of wrongdoing in Theo's shooting. Abe refused to accept the report. Overwhelmed, J.J. planned to commit suicide, but Gabi learned of his plans and stopped him. Gabi stayed overnight with J.J. to keep him company, and Lani saw them together in bed. Mistaking the nature of the embrace, a heartbroken Lani ran into the arms and bed of Eli. Jennifer reminded Abe of how he had felt when he had mistakenly shot Brady in the past, and she asked Abe to forgive J.J. After hearing Kate confess to her part in the shooting, Chad forced Kate to resign and threw her out of the mansion. Andre encouraged Kate to close the deal for Gabi Chic, and Gabi agreed to sign the deal with DiMera. Ciara grew more aggressive. Paul was shattered to learn Will was moving in with Sonny. Brady and Victor set a trap for Eve.
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Kevin and Laura's Christmas Eve wedding hit a snag, but Lesley's Italian boyfriend, Marcello, stepped in to save the day. Feuding loved ones were stranded at Julian's new pub during a snowstorm. Molly and T.J. helped their squabbling family members put aside their differences and help an overcrowded homeless shelter in the Charles Street district during the weather emergency. Carly gave Jason a house key for Christmas because she wanted him to know that he would always have a home with her. Jason dropped off a present for Jake, but Jake wanted nothing to do with his father. Ava offered Nelle a job at the gallery. Nelle manipulated her way into Sonny and Carly's home because she wanted to spend Christmas with Michael. Lulu went to Peter August with her story about Mayor Lomax's stolen election. Oscar spent the holidays getting to know the Quartermaines. Drew surprised Sam with a diamond engagement ring. A mystery person stole the Christmas ornament containing the flash drive with all of Andre's work.
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Nikki urged Kevin to flee town to avoid being exposed as her accomplice in embezzling from Victor's accounts. Nikki and Victoria appealed to J.T. to look away from Nikki's involvement in the theft, but he told them he couldn't. Victoria blabbed to Victor that Nikki had stolen the money. Victor and Victoria were stunned to learn that J.T. had reported the anomaly in Victor's account as a banking error. Victor deliberately kept the information from Nikki and blackmailed her into moving back to the ranch. Nikki informed Victor that she'd used the stolen funds to buy Chancellor Park. Victor and Nikki publicly announced their reunion and their co-ownership of the park. Nikki learned the truth about J.T.'s report, but she opted to stay at the ranch. J.T. confided to Victoria that he and Mac had separated, and Victoria invited him to join her and Reed for the holidays. Jill planned to sell Chancellor Industries. Ashley assembled the board for a vote of no confidence against Jack. Jack appointed Phyllis to the board in the hope of winning the vote. Jack was crushed when Kyle sent his tiebreaking vote to oust Jack as CEO. Ashley was livid when Jack revealed that he'd added a provision to Jabot's bylaws to require that the CEO of the company be a blood Abbott. Charlie tried to play matchmaker with his parents. Devon and Jill joined efforts to reunite the Ashby family for Christmas Eve.
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