Brooke awakened on New Year's Day with Deacon grinning beside her on the bed. He swore nothing had happened, but Brooke swore him to secrecy and banned him from the house. She grappled to understand why she'd blown her sobriety. She confessed the drinking to Ridge and Hope, but when Ridge asked if Deacon had been involved, Brooke indicated that only she was to blame. Hope blamed herself for pushing Brooke to accept Deacon. Ridge took Brooke to an A.A. meeting. Liam didn't get the significance of Douglas saying he'd seen Grandma kissing Santa. Bill let Hope and Liam know he'd be there when the "crap" eventually hit the fan with Deacon. Sheila visited Taylor again, and Taylor seemed alarmed when Sheila seethed about Brooke. Taylor reminded Sheila that she had a long way to go to heal, and she couldn't come over to the house uninvited. Paris and Carter discussed the events that had led to their kiss and claimed to be just friends.
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Sami convinced Lucas to leave Salem with her. Ava acted offended when Rafe questioned her about Duke. Jack buried the hatchet with Xander and Gwen. Jennifer and Gwen had a heart-to-heart. Jack and Jennifer left for Boston to work on a new paper. Abigail investigated Philip and Sarah's disappearances, unnerving Gwen. Kayla left town with Steve to track down Kristen. Chad told Kate about his alliance with Lucas. E.J. apologized to Nicole, but she refused to take him back. Xander talked to Rex and offered his help to Abigail. Johnny told Marlena that he had scrapped his movie. Susan had a vision that made her violently ill. Paulina threw a wedding reception. Devil Johnny announced at the reception that he did not want to be with Chanel.
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Tracy returned to Port Charles with the shocking news that Luke Spencer had been killed in a tragic cable car accident in Austria. Tracy quickly figured out that "Bailey" was Maxie's missing daughter, Louise. Dante arrested Tracy for setting Alexis up to be charged with a DWI. Victor was revealed to be behind Luke's untimely demise. Ned and Olivia moved ahead with plans for Ned to adopt Leo. Olivia happily agreed to Ned's suggestion that they renew their wedding vows. Shawn offered Alexis a job at the Invader. Sonny hoped to work things out with Carly, but she was unable to forgive Sonny because of his reluctance to answer questions about Nina. Nina hoped to have a second chance with Sonny if his marriage to Carly fell apart. Carly paid Nina a visit. Peter hired Martin to represent him. Finn and Elizabeth made plans for their first date, but she still held her wedding ring close. Sasha struggled as she returned to work at Deception. Curtis and Portia declared their love for each other. Spencer was ordered by the court to volunteer at the Jerome Gallery. Ava decided to have Spencer report to Trina. Esme picked up a potent prescription.
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Adam gently rebuffed Chelsea's attempt to reconcile. Chelsea later discovered Adam and Sally spending a platonic New Year's Eve together. Chloe warned Adam to steer clear of both Chelsea and Sally. A jealous Chelsea contemplated firing Sally. Lily became increasingly irked by Victoria inserting herself into Billy's plan to trap Adam. Traci voiced her objection to Billy's scheme and confronted Victoria about using Billy. Troubled by Lily and Jack's cautionary words, Billy outed Sally when he caught her spying on him again. Billy confessed to Adam that he'd feigned his downward spiral to take Adam down, but he'd reconsidered because he'd realized Adam wasn't worth it. Adam seemed unnerved by Billy's contention that Adam would always be a failure. Billy told Victoria about his change of heart and accused her of caring more about her business than about him. Billy accepted Lily's offer to work at Chancellor. Upset at the prospect of Chelsea selling the penthouse, Connor insisted that she move into the ranch with him and Adam. Abby and Chance declined Devon's request to amend their legal agreement, citing concerns about not wanting to cause any confusion for Dominic. Devon enlisted Amanda's help to pursue legal rights to be with Dominic. Chance stifled his excitement about rejoining the police force after seeing Abby's reaction to the idea, and he decided to remain on indefinite leave. Nate was shocked when the hospital board reprimanded him for dating Elena. Nick implored Noah to work for him.
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