Concerned he's tearing Theresa's family apart, Ethan leaves. Theresa lashes out at Luis and declares that she no longer considers him her brother. Luis insists he's doing what's best for her. Pilar watches helplessly as her children fight. Luis vows to keep Theresa away from Ethan. Later, Luis asks Pilar how she could lie to him for so long. Meanwhile, Theresa tells Whitney she's afraid Ethan will choose Gwen in a misguided effort to do the right thing for her. Julian assures Alistair Luis will forbid Theresa from ever seeing Ethan again. Ivy warns Julian she wants Ethan to be able to choose the woman he truly loves. A despondent Ethan arrives home, and Julian is privately pleased to hear he and Luis fought. Julian is even more elated when Ethan says he won't be the cause of Theresa losing her family and indicates he will choose Gwen.
At the cemetery, Julian orders a cement truck to cover Sheridan's coffin so that his sister is never disturbed again. The cemetery worker thinks he hears Sheridan screaming for help, which she is, but Julian assures the man that his sister is very dead. The cement truck proceeds to dump cement on Sheridan's coffin! Meanwhile, Hank, Eve, and Hal make a valiant escape attempt from Roger and Pierre, but they aren't able to get away. Roger and Pierre tell them it is time to go to the boat. CHad is to be left behind to bleed to death on the floor of the warehouse.
At the Bennett's, the Bennett's, Miguel, and TC and Simone gather to decorate the Bennett's tree. TC is worried about Eve, but Grace and Sam says she must have gotten caught up at work. Charity asks her aunt Grace for advice about when she'll know it is the right time to make love. Grace tells Charity that she'll know, and that she shouldn't let any boy pressure her into making love if she's not ready. Elsewhere, Miguel asks Sam the same question. Sam tells Miguel a story about him and Grace, and how they waited till they were married. Miguel gets the point of the story, if he lays a hand on CHarity before he marries her, Sam will kill him. Sam laughs, but says "you got it!" Meanwhile, Kay can't get into the spirit of Christmas, and Hecuba tells her it is because she doesn't have a soul! Kay runs up to her room and demands Hecuba show herself. Hecuba appears, and Kay begins to strangle her! Kay demands she give her soul back, but Hecuba refuses. When Kay doubts Hecuba even has her soul, Hecuba produces Kay's soul. She holds a vial of glowing liquid, jumps up and down on Kay's bed, and says it is hers forever and she'll never get it back!
At the Russell's, Luis grabs his gun and plans to go to the Crane mansion to get Theresa. Pilar begs him not to do this, but Luis says he is not going to let his sister run-off with a Crane. Luis says the only way to stop him from going up there is to prove to him that Ethan isn't a Crane. Pilar keeps silent, so Luis leaves. Pilar is worried about Theresa and Ethan, but Whitney has a feeling that Theresa really does love Ethan. Whitney says she can't imagine going against her family for love. Pilar senses that Whitney is struggling with similar feelings about Chad Harris.
At the mansion, Ethan tells Theresa that he won't come between her and her family, but Theresa tells Ethan that she loves him and doesn't care what Luis thinks. She tells him that she wants to elope, but Ethan says he still doesn't know who he wants to marry. Suddenly, Luis shows up! Luis demands Theresa leave with him, but Theresa refuses. Luis tells her that she's just being brainwashed, but Ethan insists that he loves and respects Theresa. Luis asks him if he's going to marry his sister? Does his family know of his plans to propose to her? Ethan says no, but is unable to finish his comment because Luis cuts him off. Luis is even more sure that Ethan is just using his sister. Theresa ends up caught in the middle of her brother and Ethan's feud.
The show ends with the Bennett's singing "The First Noel" and hoping that everyone else in Harmony is as happy as they are, which of course is not the case.
At the Bennett's, Pilar and Whitney show up, and Pilar pleads with Sam for help. SHe informs him about Luis going to the mansion with a gun, so the two of them leave. Meanwhile, Miguel gives Charity an angel ornament, and later they help Jessica make Christmas baskets for the people at the nursing home. Upstairs, Hecuba tells Kay that the only way she will give her her soul back, is if Kay helps her get rid of CHarity. Kay decides to take time thinking it over, but when she goes downstairs and sees Miguel and CHarity kissing under the mistletoe, she tells HEcuba that she will do anything to have Miguel and her soul, so she will help her. Hecuba is pleased, and tells Kay to start by getting her one of Charity's hairs.
On the docks, Roger has boarded Hal and Hank onto the boat, while Pierre watches Eve and Chad. Eve tends to Chad, who recalls calling Eve mother when he was delirious. Roger returns and tells Eve and Chad that it is time for them to get on the boat. However, Eve convinces them to leave Chad behind, claiming that the blood trail to the boat will cause the police and coast guard to investigate, and possibly lead to their capture. Roger handcuffs Chad to a pole, and before being led off by gunpoint, Eve tells Chad to break free and save himself once they are gone. Chad manages to break free, but decides to save Eve instead of himself. When he confronts Roger and Pierre down near the boat, Roger shoots Chad, who falls into the water!
At the mansion, Gwen overhears Rebecca and Julian gloating about telling Luis the truth about Ethan and Theresa, and she is furious. She tells her mother that if Ethan ever learns about this, she will lose him forever. Ivy shows up and tells Julian and Rebecca that she knew this plan of theirs would backfire. Julian and Rebecca think there is no reason for the truth to ever come out, but Ivy says Luis, Ethan, and Theresa are having it out in the living room as they speak. They all head into the living room, where Theresa demands Luis tell her who told him about her and Ethan. Luis says it doesn't matter. Sam shows up and tries to convince Luis to leave, but he refuses to leave without Theresa. Theresa makes a speech in which she tells Luis, and the others, that she loves Ethan and no matter what they say or do, that will never change. As she talks about love, Ivy and Sam look at one another. Ivy tells Ethan that Theresa is right, he should marry who he loves, not who they want him to marry, otherwise he might regret it later on. Rebecca begins to wonder if Ivy is harboring a long-lost love for someone else, but Ivy says if she was in love with someone else, she wouldn't be with Julian. Rebecca says "unless that person doesn't return your love . . . . " Ethan takes some time to be alone and thinks about things, and when he returns, he announces that he's made a decision.
In her coffin, Sheridan begins to run out of air again, and passes out.
At Tabitha's place, Tabitha is busy working on her potion to make the publishers forget all about her memoirs, while Timmy worries about Sheridan Crane, who he knows is still alive. Timmy says they have to help her, but Tabitha says even if she were alive, which she doubts, it would be impossible to get through that cement. Timmy refuses to let Sheridan die, so he calls 911. Tabitha catches Timmy calling the police and stops him. She tells him to forget about Sheridan Crane, but Timmy says he can't let her die because she is as pretty as Charity. Tabitha tells him that Sheridan is dead, which is what they will be if this potion doesn't work! Suddenly, someone rings the doorbell! Tabitha answers the door, and Danielle Dwyer from Harper Collins introduces herself. Tabitha invites her in, and Danielle says she's so excited about meeting Timmy, the author of this guaranteed best seller. Tabitha apologizes to Mrs. Dwyer for misleading her, but Timmy is just a doll, and she points him out to her. Tabitha says these are her memoirs and are not for publication. Mrs. Dwyer is confused, especially when Tabitha insists her doll sent her the memoirs and was the one who talked to her on the phone. Mrs. Dwyer thinks she knows exactly what is going on, Timmy is Tabitha's alter ego. Timmy comes to life and says he may be a lot of things, but he is not Tabitha's alter-ego. Mrs. Dwyer freaks out and yells "Timmy is no doll, he's alive!" Tabitha says Timmy is not alive, that was her throwing her voice! Tabitha pretends that Timmy is just a puppet, and she and Timmy try to fool Mrs. Dwyer into thinking so. Tabitha shoves some cookies into her mouth, and Timmy says "Tabitha is eating and talking for Timmy at the same time." Timmy then begins to ask Mrs. Dwyer if she liked the book? Mrs. Dwyer begins to carry on a conversation with Timmy. She tells him that she loved the book, the idea of an expose on a seemingly normal town by a woman who claims to be a centuries old witch is a totally original concept. Mrs. Dwyer has a blockbuster idea for marketing which will guarantee it hits the top ten list before he can even say royalties. Timmy tells her, speaking of royalties, he wants 2 percent above the going rate. Tabitha tries to tell Timmy to shut up. Mrs. Dwyer tells Tabitha that she'll up her royalties as soon as she signs the contracts, but Tabitha refuses to do so. Mrs. Dwyer says that they have a verbal agreement, so if she backs out now, Harper Collins will sue her! Tabitha says she leaves her no choice but to make her forget all about her memoirs. Mrs. Dwyer asks her how she thinks she is going to do that? Tabitha throws the dirt on Mrs. Dwyer and casts a spell on her. Mrs. Dwyer thinks this is just a gimmick, and she says she should save it for the book signings and talk shows. Tabitha can't believe her potion didn't work. Mrs. Dwyer hands Tabitha the contracts, but she refuses to sign. Tabitha doubts anyone would be interested in the thoughts of an old woman, but Mrs. Dwyer says she's not just any old woman, she's a witch! Tabitha prefers sorceress, but asks not to be quoted. Mrs. Dwyer tells Tabitha that her book a real life Peyton Place! Mrs. Dwyer also thinks that she and Timmy are a great gimmick, it's obvious that she is dealing with an author with a duel personality! Mrs. Dwyer starts to talk psycho-babble, which gives Tabitha and Timmy headaches. Tabitha still refuses to sell her book, but Mrs. Dwyer says her other personality already agreed to sign, so she calls the legal department to see if this would hold up in court. Tabitha is puzzled as to why her potion didn't work, but Timmy knows it is because Sheridan wasn't dead. Tabitha says they must come up with a new plan, or the two of them are doomed! Mrs. Dwyer produces a contract and offers to give Tabitha an advance if she signs it, but Tabitha refuses. Tabitha gets up, and Mrs. Dwyer follows her. As they argue, Timmy quickly signs the contracts! When Mrs. Dwyer retrieves the contracts, she sees that Timmy has signed them, and is very pleased. Tabitha is furious, but what's done is done! Mrs. Dwyer tells Tabitha if she tries to challenge them in court, she and Timmy will become famous all over the world!
On the docks, Chad's lifeless body falls into the water. Suddenly, Chad comes to life and begins splashing around! He realizes he has been left to die, but refuses to do so. He begins to swim to save Dr. Russell and Hank.
At the Bennett's, Kay comes downstairs and sees Charity kissing Miguel, so she agrees to help Hecuba get rid of Charity. Charity is suddenly struck with the feeling that something evil is about to happen. Kay overhears this, so she warns HEcuba to get out of here. Hecuba says nobody can see her, but Kay, so she tells Kay to go get her a strand of Charity's hair. Kay agrees, but only because she thinks Hecuba is only going to kidnap Charity and not hurt her. Back in the living room, Miguel tells Charity that nothing evil is about to happen. Kay approaches Charity to try and pluck a strand of Charity's hair, but Miguel stops her because he feels so lucky that he gets to hang out with the girl he loves and his best friend. As they all wrap gifts for kids at the youth center, Charity continues to sense evil is nearby. Hecuba continues to press Kay to get her a strand of Charity's hair, because it is the only way she will get her soul back and win Miguel. Elsewhere, TC asks Grace if she is okay? Grace says she should be, but she fears they are in the presence of evil, and something bad is about to happen. TC tries to assure her that nothing bad is going to happen. Meanwhile, Simone asks Whitney to be honest with her, does she want Chad? Whitney says she isn't after Chad, but Simone doesn't believe her and thinks she's not answering because she is in love with him. Whitney asks Simone if she really wants to know how she feels about Chad, she'll tell him. Suddenly, there is a knock at the door. TC thinks it must be Eve, but it is Chad! Chad collapses onto the floor when Jessica answers the door! Miguel calls 911, and TC asks Chad what happened? Chad says they have Dr. Russell. TC asks him who has Eve? Chad says, in fragments, that Hank Bennet and some other guy from the FBI, "they" took them to a warehouse, two french guys. Chad names Roger and Pierre, and TC realizes these are the guys responsible for Sheridan's murder. TC realizes that the drug cartel has Eve, Hank, and the FBI agent, and they are probably going to kill them. Chad tells TC that they took them to . . . . before Chad can tells him, he passes out. Miguel thinks Chad's shooting is the evil Charity felt. Charity says it might have been part of it, but the evil she feels is in this room and is getting stronger. Grace doesn't understand why there is so much evil in Harmony, and why does she also feel that it is right here in this room. Kay suggests that her mom is just reacting to Chad being shot. Chad comes too, and tells TC that the drug cartel took them onto a boat to be killed. TC tells Grace that they need to call Sam, which they do. Suddenly, Chad tries to warn them that Sheridan is still alive! Later, TC calls the harbor patrol. Chad continues to try and tell them that Sheridan is alive, but he can't get the words out. As Charity and Miguel watch for the ambulance, Kay plucks a strand of Charity's hair, claiming it must have gotten stuck in her bracelet. Kay then gives Hecuba the hair she so desperately needs. Later, Charity and Grace compare their feelings about an evil presence near by. Grace has a horrible feeling that someone else will die tonight.
At the mansion, Ethan announces that he has made a decision as to who he is going to marry. Ethan just hopes the woman he's going to ask will accept his proposal after all he has put them through. Rebecca hopes Ethan chooses Gwen, and Julian assures her that he will because he is a Crane. Ivy thanks God that Ethan isn't a Crane and will marry for love. Sam hopes for Luis' sake that Ethan marries Gwen, and Luis hopes for Ethan's sake that he does too. Before Ethan announces who he is going to marry, he apologizes to Gwen, Rebecca, and his parents for calling off the wedding. Ivy whispers to Sam that Ethan is about to make a decision that will affect his whole life, and she just wishes she had not let her family make that decision for her. Ivy wishes she could go back and change things, but Sam tells her to just stop this. Sam says he made the right choice when he chose to marry Grace. Rebecca wonders what Ivy and Sam are whispering about, could it have to do with Ivy's secret? Julian wishes he knew her secret so he could divorce Ivy and marry a woman with far more attributes. Rebecca tells Julian to be patient, she is on the verge of figuring out Ivy's secret. Meanwhile, Gwen assumes that Ethan has chosen her, when he turns to her, so she hugs him. She says that she doesn't care how they are married, she just wants to be his wife. Ethan tells Gwen that, like Sheridan, he always thought they were destined to grow old together and raise children. Theresa also believes Ethan has chosen Gwen, and that she has lost him. Luis tells Theresa that they should leave. However, Ethan tells Gwen that is what he thought, before he met Theresa. Meanwhile, Ivy continues to plead with Sam to get along with Ethan, but Sam says it doesn't make a difference, he is nothing to Ethan. Ivy says he is, which makes Rebecca and Julian wonder. Rebecca vows to find out what Ivy meant by that comment. Luis asks "the great Ethan" how long they are forced to stand around before he makes his announcement. Ethan says he wasn't looking to fall in love with anyone else but Gwen, but then Theresa walked into his life and into his heart. Ethan says he loves Theresa differently, but just as much as he loves Gwen. Luis tells him to just get to the point! Ethan says he will tell them, but is interrupted by TC's phone call. Pilar answers and is told by TC that he needs to speak to Sam, it is urgent. Julian tells Pilar to tell TC that Sam will call back later because they are in the middle of something urgent themselves! Sam takes the call, and learns what is going on. Julian tells Luis and Sam to go do their duty, and then asks Ethan who he is going to marry? As Sam and Luis go to leave, Ethan says he is going with them to make sure those drug dealers pay! Julian begs him to name the woman, but Ethan refuses to do so and run out because he needs to be here to comfort the woman and explain the reasons he chose the other one. Ethan announces that his decision will just have to wait. Pilar tells Luis to be careful, and Ivy asks Sam to watch out for Ethan. Sam says he'll do the best he can, but saving Hank, Eve, and Freeman is his number one priority. Ivy almost spills the beans, but she doesn't. After everyone leaves, Rebecca comforts her daughter. Sam, Luis, and Ethan go to leave, and Sam orders Ethan to do as he is told tonight or he will put the cuffs on him! Theresa begs Luis to bring Ethan back safe to her. They all get in the car and drive away. Theresa and Gwen watch them leave, and they know that when Ethan returns, both of their lives will be changed forever.
At the mansion, Theresa worries about Ethan's safety. Pilar tells her not to worry because Luis and Sam will keep him safe. Still, Theresa fears Ethan could die tonight and she would never see him again. Pilar is frightened for Luis, and Theresa says she is too. She asks God not to let anything happen to Luis and Ethan. Theresa thinks she can stop Ethan from being killed, and she runs off.
At the docks, Sam, Luis, and Ethan meet up with TC. There are several boats out on the water, so Luis and Sam ready a dingy. Ethan thinks they are fools, so he calls for a helicopter. Sam and Luis yell at Ethan because the cartel will hear the helicopter from a mile away and kill everyone before they can get to them. TC yells at them all to stop arguing. Luis and Sam tell Ethan that he is not going with them on this mission, so he should stay home. Luis tells Ethan to beat it, but Sam tells Luis that he is staying here too. Luis refuses because he wants to take out those slimes if it is the last thing he does. Sam is afraid of that, that Luis has a death wish. Luis says he will swim out there if he has to! Ethan tells Sam that he is going as well, and he'll take his own boat if he has to. TC yells at them all for wasting time, so Sam says they can all go, but they have to do what he says. They all hop in the boat and as they are about to head out, Theresa shows up, and Pilar is right behind her. Theresa begs Ethan not to go and she blames herself for pushing him away. Ethan tells Theresa that he has to go, and he loves her. They share a kiss, which Luis witnesses. Theresa begs Luis to watch over Ethan, but Luis tells her to forget about Ethan. Luis, Sam, TC, and Ethan row the boat out onto the water and begin their search. As they row, TC thinks about Eve, Sam thinks about Grace, Ethan thinks about THeresa, and Luis thinks about what could have been with Sheridan. As they near the boat, Ethan considers asking Luis to tell Theresa, in case he doesn't make it back . . . However he changes his mind because he knows Luis would throw a party if he were to die.
On the boat, Eve looks for Chad and refuses to believe he is dead. Hal and Hank tell her that it is possible that he was picked up. Roger laughs at them for being so positive, and he tells them all that the minute the tide turns, they will all be killed. Hank tells Roger that he can do whatever he wants to him, but to let Eve go. Roger, of course, refuses. Hank feels guilty that innocent people are going to be hurt because of their gamble. Eve thinks about her husband and daughters, and how she'll never see them grow up. She then thinks about poor Sheridan and how she will be spending her last minutes. When Pierre and Roger leave to check on the tide, Hank tells Eve that the minute they uncuff them, he and Hal will cause a distraction, and she is to jump and swim for shore. Eve asks "What about you guys?" but Hal tells her not to worry about them. Roger and Pierre return, and Roger tells them it is time for them to die. Pierre takes the cuffs off of Hal, then Hank, and finally Eve. Pierre puts some chains and weights around Hank's legs, and tells his to say a fond farewell. Hank yells "Eve now!" as he and Hal attack Roger and Pierre. Eve is about to jump, but the ships captain grabs Eve and threatens to kill her if Hank and Hal don't let go of Roger and Pierre, which they do. Roger is furious, and decides to kill Eve first and force Hank and Hal watch her slowly drown. What Roger doesn't know, is that the cavalry has arrived and has boarded this ship! As Roger and Pierre prepare to throw Eve overboard, the cavalry attacks. Suddenly, Eve falls overboard! An all out brawl ensues.
Back on shore, THeresa senses something is wrong and that Ethan is in danger. Grace shows up later to wait and worry with Pilar.
At the graveyard, the cement over Sheridan's coffin dries, so the men fill the top portion of the grave back up with dirt. In her coffin, Sheridan appears to be dead! Sheridan isn't dead, but she is close. She dreams about being married to Luis with kids of their own. Luis, Sheridan, and their son and daughter are enjoying a picnic in the park. Sheridan tells Luis that she is so happy, that only one thing could make her happier, and the she could die a happy woman. Luis tells her that he'd do anything to make her happy. Sheridan tells Luis that she wants him and Ethan to be friends. Ethan shows up, and the kids run to their Uncle Ethan. Ethan tells the kids that he'll say hello to their parents, and then they can play. Sheridan begs them both to be friends and embrace one another like brothers. They do what Sheridan asks, and she says now she can die in peace. Sheridan says goodbye to her children and says she will see them again soon some day. She then tells Ethan it is time for her to go, and he promises her that he and Luis will be like brothers from now on. Sheridan then says goodbye to Luis. Luis tells her that he'll never be with another woman but her. Sheridan then walks into the woods and disappears. Sheridan makes her way towards the light, Luis arrives and tries to stop her. He tells her nothing can keep them apart, not even death. Sheridan disappears in the white mist, and as she does so, she tells Luis to look for her in his heart.