Phyllis and Nick argued about Phyllis not divulging her knowledge of Sharon and Adam's relationship and about Phyllis' covert plan to catch Deacon. Phyllis claimed that what had truly upset Nick was his inability to save Sharon. Phyllis admitted that Jack had told her about Adam and Sharon, and she demanded to know how Nick found out about the couple. Phyllis guessed that Nick saw Sharon and Adam having sex, and she recalled that Nick had acted strangely the day of Daniel's arrest. Nick admitted that he had seen Adam and Sharon in bed, but he refused to elaborate. Nick claimed that both he and Phyllis could recall instances when they had not been truthful and up-front. Phyllis walked away after Nick said that without trust, they were back where they started.
At Crimson Lights, Cane and Lily took a break from shopping to enjoy coffee. Cane gave Lily a tree ornament to celebrate their first Christmas together as a couple. Later, Cane and Lily went to choose a Christmas tree. Cane noticed Neil nearby and suggested that he and Lily announce their good news about Mac's pregnancy. Lily opted to wait until Christmas Day. Lily added that along with Mac, Emily was an angel for helping her decide that she truly wanted a baby and for approving Mac as a surrogate. Cane kissed Lily and said she could handle the announcement however she wished as long as it made her happy.
Murphy and Katherine staffed a Christmas tree lot that benefited charity. Sharon and Adam stood nearby and observed Murphy and Katherine sharing a kiss while bantering cheerily with customers. Sharon directed Adam's attention to Murphy and Katherine and said, "They're so in sync. They're a team. How many people have something that special?" Adam kissed Sharon and insisted that he was very lucky, as well. Ashley approached Sharon and Adam and voiced delight about their burgeoning relationship. Adam and Sharon both agreed that their family and friends didn't readily accept them as a couple.
Neil joined Ashley and offered to help her select the perfect Christmas tree. Ashley noted that ranch staff had volunteered to choose a tree, but Ashley praised herself for being able to do things on her own. Neil and Ashley both agreed that they didn't enjoy people's expressions of pity for them because they were without partners during the holiday season. Nearby, Cane paid Katherine $100 for a tree priced at $75, but he remained mum after Katherine pressed him to divulge the results of the in vitro fertilization procedure performed on Mac. Katherine assured Cane that he would be okay no matter what happened.
Later, Billy arrived. Katherine hugged Billy and expressed relief that he'd been released from jail. Katherine supported Chloe's decision to divulge the name of the juror who'd leaked Victoria's testimony. Katherine told Billy he should thank Chloe for allowing him the freedom to spend the holidays with Delia.
Adam helped Sharon lug her chosen Christmas tree home. While Sharon searched the basement for a tree stand, Adam stuffed a gift into Sharon's stocking. When Sharon returned, she asked Adam what he'd been doing. Sharon surprised Adam by hanging a stocking, embroidered with his name, on the mantel next to hers and Noah's. Cassie's drawing of the Newman family distracted Adam as he watched Sharon proudly affixing his stocking to the family mantel.
Adam removed his coat as he approached Sharon and flung it onto the sofa table. Adam's coat sent Cassie's treasured drawing crashing to the floor. Sharon reacted in horror and knelt down to survey the damage. Adam immediately apologized, but Sharon warned Adam not to touch the broken glass. Adam punctured his finger on a shard and worried that he'd dripped blood on Cassie's crayon-drawn depiction of herself standing alongside her mother, father, and brother. Sharon ordered Adam to take care of his cut, and he left the room.
Sharon burst into tears as she remembered the day long before when Cassie presented the framed artwork to her mother. Sharon recalled that Cassie, prideful that Nick had framed the photo, remarked, "Having a family-that's the best thing." Nick entered through the open front door and heard Sharon sobbing. Nick knelt beside Sharon, placed him arms around her, and promised that they could fix the damage. Nick sounded as if he meant they could fix more than just the frame when he added, "We can fix this."
Adam, with his finger wrapped in gauze, reappeared near the entrance to Sharon's living room, but he paused for a moment when he overheard Nick comforting Sharon. Adam entered the room apologizing and, acting as if he didn't know, asked if Nick was present. After Sharon asked Adam about his hand, Nick surmised what had transpired and became enraged. Nick told Sharon that what Adam did wasn't an accident. Sharon vehemently defended Adam. Nick was not pleased when he noticed Adam's stocking hanging from the mantel.
Nick seemed defiantly unfazed as Sharon defended her decision to include Adam in every facet of her life. Nick interrupted Sharon and announced that he'd purchased a snowmobile as a gift for Noah. After Nick left, Sharon returned Cassie's drawing to its place on the sofa table. Adam volunteered to get another frame. Sharon assured Adam that she didn't believe that he'd purposely broken the frame. Sharon explained that when circumstances changed, people had to change along with them.
At the Newman ranch, Cane and Neil realized that Ashley and Lily were taunting them when the women repeatedly ordered the men to reposition the tree Ashley chose for the sitting room. Neil invited Ashley, Abby, and Faith to his house for Christmas. Ashley initially turned down Neil's invitation, but she later accepted after Neil suggested that Ashley might find comfort celebrating Christmas with Colleen's best friend, Lily. Ashley took Faith downstairs after the baby awoke crying. Neil and Cane stepped out while Ashley and Lily admired Faith. Ashley asked if Mac was pregnant, but Lily explained that she wouldn't make an announcement until Christmas Day. Lily was pleased when she learned that Neil had invited Ashley and her family for Christmas. Lily and Cane happily entertained baby Faith while Ashley hung an ornament Traci sent on the tree.
In the sitting room at the Abbott mansion, Jack and Emily shared tender moments as they enjoyed the room's festive decorations. Emily kissed Jack goodbye, but he begged her not to leave. Jack pleaded with Emily to stay, so he could help nurse her injured elbow. Emily agreed to stay after Jack promised to serve her a hot toddy. While Jack and Emily sipped their drinks, Phyllis stormed in and announced that Jack was to blame for her having a crappy day.
Emily announced her presence and Phyllis stared Jack's guest down until Emily retreated to the kitchen to sweeten her drink with a touch of honey. Before Emily left, she sarcastically retorted, "A little tartness goes a long way." Phyllis shoved Jack menacingly and accused him of ruining her life. Phyllis berated Jack for trying to persuade Nick to save Sharon from Adam. Jack apologized for causing pain and turmoil in Nick's life. Phyllis didn't accept Jack's apology and walked out.
Emily returned. After admitting that she had overheard Phyllis' tirade, Emily strongly suggested that Jack establish boundaries in his relationships. Emily yawned and announced that she was sleepy. Jack seemed pleased when Emily agreed to stay. Emily looked relieved when Jack declared that he was letting go of his emotional baggage.
After Phyllis stormed out of Jack's house, she went alone to buy a Christmas tree. Phyllis told Murphy and Katherine that she'd promised Summer that she would return home with a tree. Phyllis considered choosing a large tree, but Murphy was concerned that Phyllis might not be able to handle the tree alone. Phyllis was surprised when she heard Nick announce, "She can get any tree she wants." Nick told Phyllis that he shouldn't have let her walk away after their argument. Phyllis insisted that they should pledge not to keep secrets. Phyllis cried that if Nick kept something from her again, she would be done with their marriage. Nick assured Phyllis that they could make their relationship work, but Phyllis seemed unconvinced even as Nick heartily embraced her.
J.T. stopped by the Chancellor mansion to talk to Mac about his strained relationship with Victoria. Mac served J.T. a glass of eggnog, and he thanked her for letting him stay for a while to clear his head. J.T. complained that Victoria pressured him to accompany her to Dubai, and she insisted she would take Reed with her. Mac claimed that Victoria needed a break after Billy printed exposés about her in Restless Style.
Mac unburdened her woes and admitted that she was trying to figure out who she truly was aside from her roles as the girl who helped people in Darfur, Billy's girlfriend, and the surrogate. Mac thanked J.T. for helping her sort out her life. Mac admitted that it was easy to forget who she was under the spell of Billy's charms. J.T. claimed that he wanted his relationship with Victoria back the way it was. Mac understood how a couple could be in tune one minute and seemingly have nothing in common the next. J.T. prompted Mac to admit that she was describing her relationship with Billy. J.T. said he hoped to return to a wife who wanted to make her marriage work. Mac asked J.T if he could maintain faith and make his relationship stronger. Instead, J.T. asked Mac what faith had done for her relationship with Billy.
At Restless Style's headquarters, Chloe was dumbstruck when Billy fired her. Billy railed at Chloe and said, "You went behind my back and ratted out my source to the court!" Chloe reminded Billy that her actions got him out of jail, but Billy thrust a packing box at Chloe and ordered her to pack up and leave. Chloe carried on with her job, but Billy yelled that she was fired. Chloe maintained that she had done the right thing by contacting the judge. Chloe stood firm and dismissed Billy's tantrums. A security guard escorted Chloe onto the freight elevator. Chloe yelled to Billy, "You are such an ass!" Billy sipped coffee and snapped, "Bye bye," as he pressed the button that closed the elevator doors.
At the Chancellor mansion, Chloe disgustedly slammed the door behind her after she arrived at home toting her office belongings in a box. Billy arrived later to see Delia. Chloe handed Delia to Billy, and they walked into the living room to face a disapproving J.T. and Mac. Billy cradled Delia while J.T. blasted him for twice trashing Victoria in national media publications. Billy pointed Delia's arm at J.T. and suggested that he go home to his wife unless she was busy doing something with someone else. Mac ordered Billy to stop harassing J.T.
Mac berated Billy for being unruly in front of his daughter. Chloe quipped that Delia would eventually learn to contend with her difficult father. Chloe escorted Billy to the door, and he demanded to take Delia home with him. Chloe refused and explained that the baby was tired and needed to rest. Chloe slammed the door and headed upstairs. Mac rushed to the door and watched through the sidelight as Billy flipped up his collar to cover his ears against the harsh wind. J.T. asked Mac if she was okay. Mac responded that she wasn't. J.T. pledged to go home to his wife and insisted that he should be grateful for what he had.
Over breakfast at his house, Jack told Emily that the Abbotts had begun each day with a meal together. Emily planned to see Patty that day, and Jack asked Emily to return to the house afterward for more Christmas cheer.
At the mental ward, Paul visited Patty with a gift. Patty sobbed, hating to be cooped up. She asked if he could take her home for a day, but Paul sadly replied that he couldn't. Patty realized that she was sick, but she hoped that he could do it the following year.
When Paul left, he encountered Emily in the hallway. He wondered if Emily could get Patty a more comfortable room, but Emily didn't feel that Patty was stable enough. Paul showed Emily a paper star ornament that Patty had made for him, and he left.
Emily entered Patty's padded room. Patty handed Emily a paper angel ornament. Patty said she'd made it to look exactly like Emily, who Patty considered to be an angel. After Emily left, Patty cut a picture of Jack out of a newspaper. She crowned a paper tree with the picture and stroked it. "Merry Christmas, Jack," she lovingly uttered.
When Emily returned to Jack's house, he saw the angel. Emily explained that Patty liked to refer to Emily as an angel. Carolers arrived at the door, and Emily clapped, wondering if Jack had set it up beforehand. Jack played dumb, but then he asked if the group could use more singers. "Jack, I don't sing in public," Emily said as Jack pulled her out the front door.
Later, the carolers performed at Murphy's tree lot. Katherine hoped that Jack wasn't still upset with her. Jack said that he'd been miffed about the deal, but everyone wanted the best for Jabot, including Tucker. Jack added that he'd found other things in his life to keep him busy.
Upon returning to Jack's house, Emily couldn't believe she'd sang in front of people. Jack remarked that he'd tried to get Emily into the holiday spirit; however, she was the one to do that for him. He said that Patty had been right: Emily was indeed an angel. The two cuddled on the sofa, staring at the fire. Jack asked if she'd think about her patients on Christmas. Emily said she'd think about how Jack had made her fall in love with him. "What did you just say?" A surprised Jack asked. Emily kissed him, saying, "I love you, Jack."
At Murphy's tree drive, Jill saw Tucker McCall arrive, but before Jill could get to him, Nina stopped Jill to say that she'd figured out Jill's present to Katherine. Nina offered to help, and Jill strode away, saying, "Don't call me. I'll call you."
Gloria and Jeffrey arrived, bragging about their new luxury sedan. Gloria acted star-struck at the sight of Tucker, and Murphy had to drag her away to look at the holiday wreaths. As Tucker haggled with Katherine over the tree prices, Gloria returned with a huge wreath. She told Tucker that size mattered. Jeffrey cleared his throat, and Gloria remarked that Jill's wreath was puny. Jill retorted that some people were flashy and flamboyant, and others were tasteful.
Tucker and Katherine struck a deal: Tucker could get his tree at half price if he went in half with Katherine to purchase the trees unsold by the day's end. Katherine invited him to Christmas dinner, and Jill looked hopeful. Tucker accepted and left. Jill shoved her wreath into Murphy's hands and asked him to take it home, because she had something to do.
At Tucker's place later, Jill fanned out the tree as Tucker entered, covered in dozens of neckties that he planned to decorate the tree with. As he and Jill trimmed the tree with the ties, she commented that he'd be paying for a lot of trees at the end of the day. Tucker said he'd donated to charity and gotten a chance to see how Katherine negotiated.
When Jill mentioned Gloria, Tucker remarked that it was hard to respect such an ostentatious woman, but he'd still found Jill's jealousy endearing. Jill quipped that she was not jealous of Gloria Bardwell. When the couple cuddled on the sofa later, Tucker figured that Jill worried that he wouldn't be able to keep his hands off of her at Christmas dinner. Saying that there was something delicious about having a little secret, he kissed her neck,.
At the Baldwin's house, Daisy arrived with Eden's keys, which Eden had left at the coffeehouse. Lauren said she had a bonus check for Daisy, and Daisy asked Lauren to mail it to the dorms. When Daisy left, Eden said that Daisy couldn't possibly be staying at the dorms, because they were closed for the holidays. Lauren wondered where Daisy could really be living.
Daisy met up with Ryder to discuss an unknown woman's arrival in town. Ryder hoped to convince the woman to let Daisy play the bad person. Daisy said she had the Baldwins right where she wanted them, and she didn't need Ryder messing it up over his guilt about Kevin. Daisy received a call from Lauren asking Daisy to return to the apartment immediately. Daisy ended the call with a smile. She said she was playing her part, and Ryder should do the same.
Daisy returned to the Baldwins' and pretended that her parents were picking her up soon. Lauren dismissed the lie, saying that Michael and she could help if Daisy would just be truthful. Daisy admitted that she'd been lying about herself, because she didn't want to be treated like a charity case. She said that her real name was Daisy Sanders, and her parents had died in a car accident in East Troy when she'd been young. She'd gotten a scholarship to Walnut Grove, but with the truth revealed, she pitifully supposed that she'd get expelled. Lauren took Daisy to the other room, and Michael hopped over to his computer to confirm Daisy's story.
Gloria and Jeffrey arrived to tell Michael that even though he'd tried to lead them astray about the Chancellor deal, they'd still gotten rich off his tip about the Berlin company. Gloria kissed Michael's cheek, saying that he was a wonderful son-even when he didn't mean to be.
Eden entered as Gloria and Jeffrey left. Michael explained that Eden had been right about Daisy, and he was checking out her new, heart-breaking story. Lauren entered, pitying Daisy, and Michael received an email confirming Daisy's story. Daisy returned to the room, and Michael said that he'd verified her story. Daisy seemed disappointed that they hadn't trusted her. Lauren insisted that Daisy spend the holidays with them, and Eden grimaced.
At the Athletic Club later, Jeffrey remarked upon Gloria's "newfound crush" on Tucker McCall. Gloria said she'd just been harmlessly flirting. She thought that they should figure out what to do with their new wealth, and Jeffrey suggested that they hold onto it that time around. Gloria said that there was one thing she'd wanted for a very long time: Jabot.
At the coffeehouse, Devon assured Roxy that he had Neil's support, because Neil understood about Devon's music. Neil entered, and Roxy took off. Devon explained to Neil that Devon had failed a class while working on his demo. Neil was unhappy to hear that as a result, Devon would graduate a semester late. Neil said that he'd agreed to help Devon with the music as long as his education didn't suffer. "No degree, no demo," Neil said. Devon asked if they could talk more later. Neil agreed, warning, "I'm sure as hell not going to change my mind."
Neil went to the tree lot to pick up Katherine for a last-minute acquisition meeting at the Athletic Club. After the meeting, Neil was anxious to move ahead with the deal, but Katherine said that they hadn't even finalized Tucker's deal yet. Neil offered to table it until after the holidays. Neil mentioned that he hadn't been very diplomatic with Devon earlier that day. Spotting Devon and Roxy at a nearby table, Katherine said that Neil had a chance to fix it.
At Devon's table, Devon told Roxy that he sensed that Neil had been so stern, because he hadn't recovered from what had happened between Devon and Tyra. Neil approached, apologizing for his behavior earlier. Neil said he was willing to hear Devon out. Katherine strode over, followed by Murphy, and everyone wished each other a merry Christmas.
Paul met Nina at the coffeehouse with good news. Nina wondered if things were heating up between them after their kiss the other day. Paul blushed, and Nina guessed that they'd discuss it later. Paul said he'd found the nurse that was on duty when Katherine's baby had arrived at the hospital. The nurse was on her way to meet them as they spoke.
When Paul and Nina met the nurse, the nurse chuckled that it was hard to remember things at her age. It had been the nurse's first night on the job, and she'd been shocked to see a cold woman abandoning her baby. The nurse said that the "Grey Nuns" had taken the child.
After some research, Nina and Paul discovered that the "Grey Nuns" was a common name for the Sisters of Charity, which had operated an orphanage on the Canadian border. Paul called the place and put Nina on the phone. Nina pretended to be a birth mother, looking for her daughter. Nina lied that she'd discovered a genetic illness in her family, and she wanted to tell her daughter about it. When Nina said that her daughter's life was at risk, the agent offered to call Nina back to let her know if their supervisor would release the daughter's name.
Later, Paul received a return phone call. He promised the caller that he'd keep his source a secret. The person gave Nina and Paul the name Joanne Glover. After the call, Nina thought that she deserved a junior detective's badge. Paul offered to order it, unless she wanted to talk about the kiss instead. Nina replied that talking was overrated. Paul agreed and kissed her.
Billy showed up at Lauren's boutique to buy an outfit for Delia. He told Lauren and Amber that, because of Colleen's death, he didn't expect to have a merry Christmas. Lauren said that Delia would only have one first Christmas, and that Billy should make the most of it. As Lauren spoke, Amber began looking depressed. Daisy picked out a cute outfit for Delia. Amber surreptitiously opened her locket and stared at a picture of a little boy, then said that she needed to leave.
Amber arrived home and found Daniel decorating a "Charlie Brown" Christmas tree. Amber said that the tree was sad. Daniel said that he had just the thing for it, and gave Amber a beautiful Christmas ornament. Amber began crying. Daniel wondered why Amber was in tears -- after all, he was out of jail, Deacon was in jail, and the Romalottis were married. Amber said that one thing was missing -- her son.
Amber told Daniel the story of how she had raised her late cousin Becky's child. Deacon was the biological father of the child. Amber had no legal claim on the child, although she fought to keep him. Deacon was awarded custody of his son, little Deacon.
Amber asked Daniel if they could look for little Deacon. Daniel reminded Amber that it was their first Christmas together as husband and wife. He told her that, for all of his faults, Deacon seemed to love the child and probably had him in a safe place. Daniel said that they could talk about searching for "Little D" after the holidays.
At the Abbott mansion, Jack was still in shock that Emily had declared her love for him. Emily said that she had never felt that way before, and that she didn't want the feeling to end. Jack told Emily that he had to leave for a short while, and wouldn't tell her where he was going.
After Jack left, Billy stopped by the Abbott mansion to drop off some Christmas presents. He was surprised to find Emily alone at the house. Not a fan of Emily's, Billy made some inappropriate remarks to her, but then apologized. Emily asked Billy to spend Christmas at the mansion with Jack, but Billy lied and said that he had plans. Emily saw through Billy's lie and told him that she hoped he returned on Christmas Day. She said that no one should be alone on Christmas.
At the Newman ranch, Adam and Ashley worked on decorating the Christmas tree. Abby showed up and announced that, in light of Colleen's death and her parents' divorce, this was going to be a lousy Christmas. After Abby stormed upstairs, Adam told Ashley that he had overheard Abby telling Daisy about an outfit that Abby wanted. Adam suggested that Ashley purchase the outfit in an effort to cheer Abby up. Ashley left for Lauren's boutique. Adam babysat Faith, and told the baby that after he made sure that Ashley was happy, he was going to make Faith's "other mommy" very happy.
At Lauren's boutique, Ashley asked Daisy about the outfit that Abby wanted. Daisy went to retrieve it. Jack showed up and told Lauren that he wanted a gift for an elegant, stylish woman. Ashley overheard Jack and correctly assumed that he was shopping for Emily. Jack told Ashley that he was determined to get things right with Emily.
Jack returned to the mansion with his gift for Emily. She wanted to open it, but Jack told her that she would have to wait until Christmas. When Emily mentioned that Billy had stopped by and dropped off some gifts, Jack jokingly wondered if any of them were ticking. Emily began discussing Billy's loneliness, but Jack said that he didn't want to talk about Billy -- he wanted to focus on the wonderful woman in his arms.
Kevin and Jana showed up at the Baldwins'. Jana took Fen into the kitchen to help make Christmas cookies. Kevin told Michael that, because of the restraining order that Michael had taken out against Ryder, Kevin had to decide which of his brothers to spend Christmas with. When Michael asked Kevin which brother he had chosen, Kevin said that he had picked the brother who had always been there for him. Kevin and Michael hugged.
Phyllis and Summer showed up at Michael and Lauren's just as Kevin was leaving. The depressed Phyllis told Michael that she didn't know where Nick was, so she had decided to take Summer over to play with Fen. Jana took Fen and Summer out of the living room so that Phyllis and Michael could speak privately.
Phyllis told Michael that Nick had been keeping secrets from her -- specifically, Nick's knowledge that Adam and Sharon were sleeping together. Phyllis said that she and Nick had recently promised each other not to keep secrets, but she wondered how she could trust him when it was Christmas Eve, and Nick was missing.
Phyllis said that she could no longer blame Sharon for the problems in the Newmans' marriage -- it seemed as if Sharon had moved on, but that Nick hadn't. Noah and Eden showed up. Phyllis and Summer left to return to the tack house. Noah was concerned about Phyllis, but Michael assured him that she would be okay. Eden told Noah that she had left her gift for Lauren at the boutique, and she left to retrieve it.
Ryder and Kevin met at the deserted Christmas tree lot. Kevin said that he was going to spend Christmas with Lauren and Michael. An obviously saddened Ryder asked Kevin if they would see each other at all on Christmas. Kevin said that they probably wouldn't. Ryder lied and said that he had plans with some of the people from work. Kevin told Ryder that he would call, and wished his brother a merry Christmas.
As Daisy was locking up the boutique, Ryder showed up. He told her that he was tired of playing the "bad cop," adding that he was going to have to spend Christmas all alone. Daisy said that it would be worth it in the end. Eden approached the boutique and was stunned when she saw Daisy and Ryder hugging.
Nick went to Sharon's to apologize for having bought Noah a snowmobile without consulting her. Sharon told Nick that she had overreacted to Nick's purchase. She said that, on what would have been Faith's first Christmas, she didn't want herself and Nick fighting.
Nick and Sharon discussed their grief over their baby's death. Sharon said that she was sad -- but that she no longer needed Nick to rescue her. She told Nick that she was handling her grief in a healthy way -- by moving on. Nick said that sleeping with Adam was not what he considered "moving on."
Nick said that the real reason Adam had become involved with Sharon was to get back at Nick. Sharon resented Nick's implication, and told him that her and Adam's feelings for each other were real -- she and Adam loved each other. When Nick said that he was trying to help her, Sharon said that she didn't need or want his assistance. An angry Nick told Sharon to do what she wanted to -- that he was done with her. Nick left.
At the Newman ranch, Billy stopped by to visit Abby. Adam told Billy to do what he wanted -- that it was Billy's funeral. After trading barbs with Adam, Billy headed upstairs and remembered seeing Adam stealing an urn of ashes from a funeral home. Sharon showed up at the ranch while Adam was holding Faith. Sharon oohed and aahed over Faith, while Adam reacted uncomfortably.
Sharon told Adam that she could breathe with him, but that she felt suffocated by Nick. Wearing their coats, Abby and Billy entered the living room. Adam asked them where they were going, but Billy told him that it was none of his business. As they left, both Billy and Abby told Sharon that she could do better than Adam. Sharon realized that Billy didn't like Adam, but was surprised that Abby didn't care for him either. Adam said that Abby was taking out her grief about Colleen's death on the world. Sharon said that Abby had reacted similarly when Brad died.
Adam told Sharon that she was an incredible, wonderful woman. He said that he loved her. Sharon told Adam that she loved him. They began kissing. Faith began fussing, and Sharon took the child from her cradle and calmed her down. Ashley returned home. Adam looked discomfited as Sharon handed the baby over to Ashley.
After Ashley took Faith upstairs, Sharon waxed nostalgic about happy Christmases past at the Newman ranch. She wondered if she would ever be happy again. Adam said that he could make Sharon happy -- and then asked her to marry him.
Billy and Abby went to Colleen's grave. Billy told Colleen that he hadn't been a "good boy" since Colleen's death. Billy and Abby complained that Christmas wasn't the same without Colleen. Suddenly, Traci appeared and said, "It will be, honey." Traci promised Colleen that they would never forget her, and told Billy and Abby to honor Colleen's memory by doing good deeds and leading productive lives. Traci said that it wasn't a coincidence that the three of them were together that night -- she said that Colleen was still keeping the family together.
At the tack house, Phyllis began reading A Visit from St. Nicholas to Summer. At the deserted Christmas tree lot, Nick remembered promising Phyllis that he wouldn't keep secrets from her.
As Phyllis finished reading to Summer, Nick returned home, and said that he was sorry that he was so late. Summer went upstairs to bed. Phyllis asked Nick where he had been. He admitted that he had visited Sharon, and that Sharon said that she was in love with Adam. Phyllis asked Nick how that made him feel -- if he thought it was a great Christmas gift, or if it made him upset enough to want to leave Phyllis and return to Sharon.
Nick said that he loved Phyllis and Summer, but that it hurt him that Sharon no longer wanted him in her life -- that there was a small part of him that didn't want to let Sharon go. Nick said that he was sorry, and that he wanted Phyllis to help him with the feelings that he could no longer keep bottled up. Phyllis slapped Nick across the face and stormed upstairs.
Jill and Tucker were in bed, naked, in Tucker's loft. When Tucker reminded Jill that he would be spending Christmas at the Chancellor mansion, Jill told him that they needed to be careful in front of Katherine, or she might guess that Jill and Tucker were involved. Tucker gave Jill Christmas gifts -- red stilettos and a pair of diamond earrings. Jill said that she hadn't gotten anything for Tucker. Tucker said that Jill should wear the diamond earrings and nothing else -- that would be gift enough for him.
Paul showed up at the Chancellor mansion, where Nina, Katherine, Murphy, Chance, Chloe, Esther, Delia, and Mac were gathered for Christmas dinner. On the phone with Phillip, Chance wished his father a merry Christmas -- likewise, Mac spoke with Brock. A drunk, slobbering Billy showed up with a thermos of spiked eggnog. After asking the group if anyone wanted some of the drink, Billy remarked that Mac couldn't have any because of her "condition." The group realized that Mac was pregnant.
Jill arrived home and was shocked to learn that Mac was pregnant. Chloe told Chance that Mac's pregnancy was the nail in the coffin for Billy and Mac's relationship, and the reason why Billy was hitting the eggnog. Tucker arrived, and Katherine introduced him to everyone. Mac left.
The inebriated Billy played with Delia, much to the displeasure of Chance, Chloe, and Esther. Tucker gave Katherine and Murphy their Christmas gifts -- a first edition of Machiavelli's The Prince for Katherine, and some top-of-the-line fishing equipment for Murphy. Katherine took Tucker for a tour of the estate, giving Paul and Nina a chance to speak with Jill privately. Paul told Jill that he had made a breakthrough in locating Katherine's daughter -- and that he had the daughter's name.
Paul and Nina told Jill about the nurse who had been on duty at the hospital the night that the Grey Nuns had taken Katherine's baby to the orphanage. Paul handed Jill an envelope containing the name of Katherine's daughter. Katherine and Tucker returned from the tour of the mansion. Jill said that she wanted to speak with Katherine alone, but Tucker said that he needed to speak with Katherine before Jill did.
Alone with Katherine, Tucker told her that he had looked over Neil's proposal to purchase Celltron, and that he thought it would be a good investment for Chancellor Industries. Katherine made it clear that she still made the decisions about the company's investments, and she wasn't eager to purchase a company right after the IPO. Tucker said that if it were his call, he would purchase Celltron.
After dinner, Paul left to pick up Heather at the airport. Billy, who was slurring his speech, told Tucker that Chance and Chloe were playing house with Delia. An irritated Chloe took Delia away from Billy. Jill scolded Billy for his drinking. Billy told Tucker that Jill hadn't wanted anything to do with Billy while he was growing up. Katherine told Billy that she'd had enough of him. Billy told Chance that Chance wasn't Delia's father. Chance said that he wasn't trying to be. Billy decided he was going home. Chance said that if Billy tried to drive, he would arrest Billy. Chance decided to drive Billy home.
Alone with Katherine, Jill presented her with a wrapped gift. Jill admitted that she hadn't been involved with Paul -- rather, she had been working on a secret project with him, trying to locate Katherine's daughter. Jill said that the name of Katherine's daughter was in the gift box. Katherine was stunned.
At the Newman ranch, Ashley and Abby looked at all the gifts that Victor had sent from Belgium. Abby said that she had a gift for Ashley, and then escorted Traci into the living room. Ashley said that Traci's presence was the best Christmas gift ever.
Outside Neil's apartment, Lily and Cane discussed Neil's Christmas gift -- their telling Neil that he was going to become a grandfather. The Ashbys went inside the apartment, where Neil, Devon, and Roxanne were waiting. The aroma of Roxanne's freshly baked apple pie filled the air.
Neil showed the family a gift that Tucker had given him -- a beautiful watch, loaded with electronic gadgets. Lily opened a gift that Sharon had dropped by for her earlier -- a book of Elizabeth Barrett Browning's poetry. Lily was touched, as Browning had been Drucilla's favorite poet. Neil gave a thrilled Devon a gift certificate for ten studio recording sessions in Chicago. Neil was about to open his gift from the Ashbys when Ashley, Faith, Traci, and Abby arrived. Lily whispered something to Cane, and Cane left. Lily stopped Neil from opening the gift -- she said that she wanted Cane there when Neil opened his present.
Abby left Neil's, after Ashley set a ten o'clock curfew for her. Mac showed up. Cane returned with a gift bag. Lily told Neil that he could continue unwrapping his present -- a "World's Greatest Grandpa" tee shirt. Neil immediately realized that Mac was pregnant with the Ashbys' child. Neil was floored, and Cane said that Mac's pregnancy was truly a Christmas miracle.
Mac opened her Christmas present -- Lily and Cane had gotten her gift certificates for maternity massages and for Fenmore's Boutique. Ashley gave Neil a framed poem about the joys of being a grandparent. Neil realized that Ashley had known that Mac was pregnant. Ashley apologized for not telling Neil, but said that she had been sworn to secrecy.
Cane and Lily gave Traci the gift bag that Cane had gone home to retrieve. It contained a scrapbook about Colleen that Lily had made while she was in the hospital. Traci said that she would always treasure the scrapbook. Cane and Mac noticed that Lily looked very tired. Lily said that she was emotional -- she was sad that Dru wasn't around. Traci said that Lily could always call her if she needed advice on motherhood.
Lily and Cane left Neil's. Mac joked that she was more excited about the baby than Lily was, although Devon disagreed. In the hallway outside the apartment, Lily told Cane that she was feeling very ill, and that he should take her to the hospital.
At Sharon's, Noah thanked his mother for the computer she had gotten him for Christmas, and then told her he was going to the tack house. Noah ran into Adam at Sharon's front door. Adam had a gift for Noah. Noah thanked Adam and told him to put the gift under the tree. After Noah was gone, Sharon told Adam that he didn't need to buy anything for Noah. Adam reminded Sharon that he had proposed to her, and joked that he wasn't beneath bribing her son in order to get Noah to like him.
Adam told Sharon to open the present that he had placed in her Christmas stocking. Sharon was stunned when she saw that the gift was an engagement ring. Adam told Sharon that he hoped that the ring would prove to her that he was serious about his marriage proposal. He said that he loved Sharon, and that he was grateful that she had saved him.
Sharon returned the ring to Adam and told him that she couldn't accept it. A disappointed Adam said that he would hold on to the ring, and hope that one day Sharon might change her mind. Sharon said that she needed to go to the tack house to see Noah's reaction when Nick presented Noah with his new snowmobile. Adam said that he understood.
At the tack house, Daniel, Amber, Phyllis, Nick, Summer, Victoria, J.T., and Reed were celebrating Christmas. Daniel spoke to his father on the phone, and then sent Danny's regards to the group. Victoria thanked Phyllis for getting Deacon thrown into jail. Phyllis said that she would do anything to protect her children.
Victoria told Phyllis that she wanted to take Reed on her business trip to Dubai, but that J.T. was against Reed's leaving the country. Phyllis said that kids needed to be with their mothers, and Victoria asked her to tell that to J.T.
J.T. apologized to Nick for not telling him in advance about Tucker's purchase of the Chancellor Industries IPO. Nick said that was business, and that he understood. Nick, however, didn't understand why J.T. was giving Victoria a hard time about taking Reed to Dubai. J.T. said that he didn't want Reed in a foreign country, with Victoria busy in the office much of the time. Nick said that the nanny could accompany Reed and Victoria. J.T. said that wasn't the answer, and that he wasn't being unreasonable by asking Victoria to leave Reed in Genoa City. A phone call from Victor interrupted their conversation. Nick asked to speak with Nikki. All were stunned when Nikki, her hair dyed brunette, walked into the tack house, saying, "Well, hello family!"
Noah showed up at the tack house, and he was escorted, with his eyes closed, to his new snowmobile. Noah was thrilled with the gift. Phyllis continued to admire Nikki's new hair color. Nikki said it was a tribute to Elizabeth Taylor. As Noah said that he hoped Sharon wouldn't be upset about the snowmobile, Summer went inside the house to get her doll.
Sharon arrived at the tack house, where Summer greeted her. Sharon asked Summer if Nick was there. Summer told Sharon to go away, and the little girl ran back to the group. Sharon watched unseen as the smiling group took a picture around Noah's new snowmobile. Sharon stared pensively at the happy scene.
Inside the tack house, Nikki told Nick and Victoria that she had to fly back to Belgium that night -- but that she wanted to know what was going on with her children, as she sensed that things weren't quite right. Victoria admitted that she and J.T. had hit a rough spot in their marriage, due to the Restless Style articles about Victoria. Nick said that he and Phyllis had some things to work out.
Nikki went to the Chancellor mansion to visit Katherine. Tucker opened the front door, saw Nikki, and said, "Merry Christmas, Ms. Newman, darling."
Outside the tack house, Daniel and J.T. watched Amber and Reed playing together in the snow. J.T. said that being a dad was the best thing in the world. Daniel said that it was going to be a while before he and Amber had kids. Victoria walked over and told J.T. that he wasn't the only one who enjoyed being a parent -- and that she couldn't bear the thought of leaving Reed in Genoa City while she went to Dubai. J.T. suggested that Victoria not make the trip.
A depressed Amber told Daniel that she wanted to go home, because watching Summer and Reed play made her think of Little D. Amber was concerned about what would happen to the child if Deacon went to prison. Daniel became irate when Amber said that she was going to the jail to visit Deacon. Crying, Amber said that she would hire Paul to find Little D if she had to.
At the Newman ranch, a lonely Adam stared at the engagement ring he had purchased for Sharon and said, "Merry Christmas to me." He was thrilled when Sharon showed up at the house. Sharon told Adam that Noah was grown up, and that she had spent too much time looking back at the past -- she wanted to look towards the future. The nanny walked through the living room with Faith, and Sharon held the child for a moment. Adam looked extremely uncomfortable when Sharon said that it would have been her baby Faith's first Christmas too.
Outside the tack house, Nick received a phone call. He said, "What do you mean Adam took the jet? Was he by himself? Who is on the flight manifest with him?"
Adam and Sharon were on the Newman jet. Adam poured champagne and said that they should be in Lake Tahoe shortly. Sharon said that she was excited -- she couldn't believe that they were doing that. Adam said that they could go anywhere and do anything. Sharon wondered how Noah would react when he found out that she had eloped with Adam. Before kissing Sharon, Adam said that she had made him the happiest man in the world.
Due to the Christmas holiday, CBS aired an encore edition of a classic episode of The Young and the Restless. This scheduling change was planned for in advance and there will be no "lost" episodes as a result. Regular programming will resume on Monday, December 28 and pick up where Thursday, December 24's show concluded.
On behalf of everyone involved with Soap Central, I'd like to take a moment to wish you and your loved ones a very happy, healthy, and Merry Christmas