At the Bennett's, Sam, Hank, and Grace come home for Christmas Eve. Hank hugs Kay, and notices that she is very cold. The Bennetts then decide to take part in their "open just one present" Christmas Eve tradition. Jessica gives Kay a present and asks her to open it, but Kay says she will in a bit. Jessica walks off, and Kay tears at the paper. Hecuba appears and tells Kay that she can open as many presents as she wants, but she'll never get her soul back until she helps her destroy Charity. Kay asks Hecuba to leave her alone, but Hecuba refuses. Kay tells her that she is going to midnight mass tonight, but Hecuba tells her that without a soul she can't step foot into a church! Kay tells Hecuba to shut up, which Grace overhears. Kay claims she was just thinking out loud when her mom asks who she was speaking to. Later, the Bennetts open their gifts. Sam gives Grace a silver cross for Christmas, and the others open their gifts. Everyone worries about Kay, so Grace asks Kay to go run a present over to Tabitha's for her. She hopes it will get Kay into the Christmas Spirit.
At Tabitha's, Tabitha is furious that Hecuba is planning to destroy Charity and take her place. Timmy doesn't like that Kay is working with Hecuba, but Tabitha says that Kay is just mean, she's not evil. However, if Kay became evil, then she would be dangerous. Tabitha asks Timmy to tell her everything that went on in Kay's room, so he tells her about the vial Hecuba was waving around. Tabitha produces a similar vial, and Timmy says that looks just like it. Tabitha realizes that Hecuba has Kay's soul, and this is very bad. Tabitha tells Timmy that Kay will do anything to get her soul back, and Hecuba will take full advantage of that. Tabitha fears that Hecuba will use Kay to destroy Charity, Miguel, and them! Later, after the news, Kay drops off Tabitha's Christmas present and wishes her a happy holidays. Tabitha takes the present, thanks her, and slams the door in her face! Tabitha fears the present could be from Hecuba, and she's afraid to open it. As Tabitha runs around crying about how she is a mess, Timmy gets a call from someone he was expecting to hear from. Later, a man shows up at Tabitha's door and delivers a special package to her. Timmy opens the package, which has everything they need for a holiday feast and MarTimmies. Tabitha tells Timmy he is sweet, and asks him to mix up some pitchers of Martimmy Mix. As they drink, Tabitha tells Timmy that this is the best batch of MarTimmies he's ever made. Timmy then gives Tabitha an end of the year present, some new baubles for her to wear, and she gives him a new pair of gloves. Tabitha makes a toast to the possibility of things in the new year not being so bad. A spying Hecuba says that Tabitha's new year is going to be worse than she could ever imagine.
At the hospital, Sheridan dies, again, after Ethan pulls the plug. Luis is furious, but Gwen says that Ethan was only doing as Sheridan wished. The doctor and Theresa hold Luis back, and Ethan wonders if he did the right thing. Ethan knows Sheridan would never want Luis to hurt like this. Ethan allows Luis to go see Sheridan. Luis sits by her bedside Theresa calls the mansion to talk with her mother. She tells her mom that Sheridan was still alive, but in a coma and hooked up to machines. She says that the doctors said it was hopeless, so they had to abide by the living will Sheridan drew up. Pilar tells Theresa that she will come right away. Elsewhere, Chad and Whitney share a kiss, which Eve sees, and she hopes she's done the right thing. Eve and the others come into see Sheridan, and Luis sees Sheridan breath. Eve tells him it was probably a involuntary reaction, but Luis is positive she took a breath, Sheridan takes another breath, and the monitor begins to beep. Luis screams "She's alive!"
At the mansion, Julian is flirting with Rebecca and asks her how she can get him out of his marriage? Rebecca remembers finding the locket. Later, Julian and Rebecca overhear Pilar and Ivy talking about Sheridan, and see them leave for the hospital. Julian and Rebecca decide to take off as well to make sure everything is okay in Ethan and Gwen land.
Back at the hospital, Pilar and Ivy show up, and everyone is happy that Sheridan is alive. However, Eve tells them that this isn't uncommon, and she will be unconscious forever. The doctor says that all saw the brain scan, the Sheridan they knew is gone forever. Eve tells them that Sheridan could stay alive like this for weeks, months, or years, but she will never be Sheridan. Ivy comforts her son, who realizes Sheridan is never coming back. After the news interruption, Julian and Rebecca show up, and they overhear Ethan telling Theresa and Gwen that he will ask one of them to marry him at midnight mass tonight. He sees his father, and he suggests they all show up for mass to pray for Sheridan. Julian says of course they will be there. Gwen goes to talk to her mother and tells her that she's done it, she's won. Theresa tells Whitney that tonight before mass, Ethan will propose to either her or Gwen. Meanwhile, Luis tells Sheridan that he will pray for her tonight, and that God won't give up on them and take her away from him. He refuses to believe it could end like this, and gives Sheridan a kiss.
At the church, the altar boys get everything ready for mass. People start showing up, and Julian tells Rebecca they should skip the mass, light a candle, and go back to his room and sample his nog. Rebecca says she'd love to, but she wants to be here when Ethan proposes. Elsewhere, Pilar worries about what will happen tonight. She fears that if Ethan proposes to Gwen, it will crush Theresa, but if he proposes to Theresa, she fears what the Cranes will do to her family. Theresa and Whitney show up, and Theresa hopes Ethan will propose to her. Whitney tells Theresa her news, she doesn't have to avoid Chad anymore. Chad and Ethan show up, and Chad wishes Ethan good luck tonight. Chad goes inside and sits next to Whitney at mass. Unfortunately, Simone shows up and sits in between Chad and Whitney. Ethan walks down the isle, and Gwen and Theresa look at him. Ethan stops, and ends up sitting next to Gwen. Theresa fears that Ethan has chosen Gwen. Theresa fears that Ethan has made his choice. Later, Theresa tells Ethan that she hopes he will be happy with Gwen. Ethan tells her that he doesn't understand, he had to go to Gwen to do the honorable thing. Ethan gets down on one knee and asks Theresa to marry him. Theresa cries and says she will marry him. Gwen refuses to watch, and cries in her mother's arms.
At a statue of Jesus, Luis prays to God and asks him to bring Sheridan back to him. Luis says he'll never ask anything of him again. He says that he'll do anything, he just wants to grow old with her, to be happy with her. Suddenly, Luis hears Sheridan's voice. He turns around, and she is standing there. Luis asks if it is really her? Luis hugs her, and she is very real. Luis tells her never to leave him again. Luis tells Sheridan that he loves her, and she asks him to say it again. Luis tells her that he loves her with all his heart and soul, and he always will. Sheridan tells Luis that he loves her, and the two kiss.
Outside, Kay shows up, but Hecuba warns her that she won't be allowed inside. Kay doesn't believe her, but as she approaches the church, she is bathed in an electric blue light, and strong winds keep her away. Kay wonders what she has done! Kay is forced to watch the mass from the window, and she says she has never been so alone.
At the church, Kay is forced to watch everyone at mass from outside the church. We see another replay of Ethan's proposal to Theresa. Gwen cries in her mother's arms as the Cranes and everyone else watch Ethan get down on one knee and propose to Theresa. Theresa accepts, and kisses Ethan. Theresa hopes she isn't dreaming this. Ethan tells Theresa that if it is, they are having the same dream. As Gwen cries, Julian tells Rebecca that they will think of something. Ethan tells Theresa that she is the only woman he wants to spend his life with. Whitney looks over at Chad, and Chad looks at Whitney. Theresa asks Ethan if he is sure? Ethan says yes, and that is why it took him so long to make his decision.
At the statue of Jesus, we see a replay of Luis' praying to God and asking to have Sheridan returned to him. Sheridan appears behind Luis, and Luis kisses her. He tells her that he loves her, and she tells him to say it again. Luis tells Sheridan that he loves her with all his heart and soul, and she says she'll never leave him again, and that she loves him too. Sheridan tells Luis that she was so frightened, and he promises to keep her safe from now on. Sheridan tells Luis to just hold her and never let her go. Luis looks up at the statue and thanks God for bringing Sheridan back to him. Sheridan is still weak, so Luis picks her up and carries her to the hospital.
It is now Christmas Day in Harmony.
At the mansion, Julian is sulking in his chair. Julian tells Ivy that Alistair has hit the roof, and he must find a way to make Ethan change his mind. Rebecca and Gwen show up, and Gwen wants to speak with Ethan. Rebecca tells Gwen not to give Ethan the ring back, but Gwen says it is over. Gwen says she isn't happy about it, but she has to face facts, Ethan will marry Theresa and not her. Ethan comes downstairs, and Gwen gives him the ring back. Ethan says she doesn't have to, but she says it just makes things more difficult. Gwen gives Ethan his ring back, and she hopes he'll be very happy. Rebecca is furious and vows that Ethan will never marry Theresa. Julian also refuses to let this wedding occur. As Julian and Rebecca start scheming, Gwen shows up and yells at them. She tells them that they are only making this worse, and nothing they do will change Ethan's mind. Gwen says that Ethan is his own man, and there is nothing they can do to stop this wedding. Rebecca tells herself "we'll just see about that!" Julian blames Ivy for all of this, and they argue about how Ivy kept Ethan away from him and his grandfather for as long as possible. Julian says that Ethan is so different from him that he almost thinks Ethan isn't his son. Rebecca wonders if it is possible . . . .
At the Lopez-Fitzgerald's house, Pilar brings Theresa some breakfast. Theresa was dreaming about the proposal, and she hopes it wasn't just that, a dream. Pilar tells Theresa that it wasn't a dream, it was very real. Later, Ethan shows up and asks Pilar for permission to marry Theresa. Pilar wants nothing more for them to be happy, but their are many outside factors they must consider. Ethan doesn't care what his family says. Pilar says that he must, because his family will do whatever they can to stop this marriage. Theresa wishes her mom could be happy for them. Pilar says she hates being the voice of doom, but she is worried for them. Ethan says he can handle his family, and as long as he has Theresa at his side, he can make it through anything. Pilar asks "What about Rebecca Hotckiss?" Ethan says she can rant and rave all she wants, but there really isn't anything she can do. Pilar tells herself that Ethan shouldn't be so sure about that. Theresa is so happy that they are engaged, but Ethan says officially, they aren't. Ethan opens up a box, and gives Theresa an engagement ring (hopefully not the one he gave Gwen). Ethan proposes again, and asks Theresa to accept this ring as a token of his love, and return it with the greatest gift she could give him, her love. Theresa accepts, and shows her mom and Whitney her ring.
At the hospital, Luis wakes up by Sheridan's side. He hopes that it wasn't all a dream. Sheridan wakes up and sees that Luis is here, and she too thought it was a dream. Luis and Sheridan proclaim their love for one another and kiss. Sheridan tells Luis that the reason she showed up at the wharf was to tell him the truth so he didn't have to suffer. Luis says he knew it in his hear that was her, and he asks her why she ran away? Sheridan says she was scared when she heard Hank, but she wishes she had stayed and told him the truth. Luis tells her that they'll talk about this later, for now he just wants to be with her. Eve comes in to check on Sheridan, and decides to call the family, who doesn't know about her. However, Sheridan says she can call them later, she wants some time with Luis. Eve needs to examine Sheridan, so Luis steps outside. Later, Luis asks Eve how Sheridan is doing? Eve says she is in remarkable shape, but decides to keep Sheridan here for a little while longer. Luis climbs into bed with Sheridan, and continues to tell Sheridan that he loves her.
At the Bennett's, the Bennetts are enjoying Christmas breakfast when Tabitha and Timmy show up. She invites them for breakfast, but Tabitha declines and says they weren't expecting company. Grace says "Pish Posh! Your like family!" Tabitha decides to join them, and Tabitha asks where Kay is? Grace says she didn't come down, which Sam thinks is unusual because she is the one who always wakes everyone up. Grace says that she hasn't been feeling Christmasy lately. Meanwhile, Miguel notices Charity is acting odd. Charity tells Miguel that she fears Kay is in danger. Later, Charity gets a premonition that something good is happening to someone they know.
Up in her room, Kay wonders if this is what the rest of her life will be like? Hecuba's voice tells Kay that the sooner she helps her get rid of Charity, the sooner she'll get her soul back. Kay wishes she had never met Hecuba, but says she has no other choice but to help Hecuba. Hecuba tells Kay that she needs some of Charity's fingernail clippings. Kay wonders how she will get them? Hecuba tells her to figure that one out for herself, and do so quickly because souls don't keep long in glass vials.
Kay comes downstairs, but doesn't feel like eating. Grace wants to call Eve, but Kay says she is fine. Grace knows something is wrong with her daughter, and she asks her to tell her what is bothering her because she wants to help. Kay insists she is fine, and then she apologizes to Charity for failing to get her a present. Kay says she did want to give her something, she wanted to give her a manicure. Charity says that sounds great, maybe before her next date with Miguel. Kay wants to do it now, so Charity agrees. Tabitha realizes that this is Hecuba's doing. Later, Eve drops by and gives everyone the news that Sheridan has come out of her coma. Hank wants to go see her, but Eve asks him to give Sheridan and Luis a little more time together. Everyone decides to go into the living room and unwrap presents. Miguel, Kay, and Charity stay behind so that Kay can give Charity a manicure. When Charity touches Kay, she sees an ugly version of Kay's face, the Kay without a soul! Her face is green and warped, and she has red eyes!
Kay runs upstairs and finds Hecuba, dressed as Cleopatra, being fanned by an Egyptian slave, to the tune of "Walk like an Egyptian." Kay demands to know what she's done to her face! Hecuba tells Kay that the only people who can see her monster face is people like Charity who have the gift, and she'll only be able to see it at certain times, when her powers are in full. Kay says she doesn't want anyone to ever see that face again. Hecuba says the only way to get rid of her monster face is to get her soul back. Hecuba tells Kay to bring her the nail clippings, or she'll never get her soul back!
Miguel and Charity go outside, and Charity tells Miguel that Kay looked evil, like a demon had taken control of her face. Miguel says she looked normal to her, and maybe she just saw Kay making a face. Charity says she has been sensing evil for some time, and she felt that Kay shouldn't do her nails. Miguel tells Charity that they should just go back inside and see how Kay is doing. A spying Tabitha tells Timmy that she sees a war between Charity's good and Hecuba's evil coming, and the winner will change all their lives forever! Later, Kay goes back to her room and gives Hecuba Charity's nail clippings. Kay asks Hecuba what she has to do now? Hecuba tells her soulless one to wait and see! As thunder continues to rage on outside, Tabitha and Timmy hurry and pack. Suddenly, the sun goes dark! Tabitha tells Timmy that this is all Hecuba's doing, and it is going to be one hell of a new year.
Back inside, Miguel yells upstairs and asks Kay to please come downstairs. Kay heads down to the kitchen, and she asks Charity why she is staring at her? Charity apologizes and says that she and Miguel have just been very worried about her. Charity also apologizes for screaming at her. Kay suggests they forget everything and start over. Kay still wants to do Charity's nails, but Charity says she doesn't have to. Miguel tells Charity that it is okay, so Charity allows Kay to give her a manicure. Outside, thunder booms, and Tabitha says it is starting! Tabitha says she and Timmy should leave town before it begins!
At the mansion, Ivy and Julian continue to argue over Ethan's upbringing. Julian says that Ethan is so different from him that he wonders if he is even his son! Rebecca overhears this and wonders if it could be . . . . She remembers finding the locket, and realizes that Sam Bennett is Ethan's father. When Rebecca says "could it be possible?" Gwen overhears her and asks her if what could be possible? Rebecca asks Gwen to give her a moment alone to think this through. Ivy and Julian continue to bicker over Ethan's choice. Ivy tells Julian that Darth Vadar was a better father than he was! Ivy lays into Julian and tells him that she despises him, and Ethan has no interest in being anything like him. Ivy tells Julian that true love has won! She apologizes to Gwen, but says that Ethan has made his choice. Rebecca smiles and tells herself that all that could change. Rebecca tells Gwen not to throw in the towel yet, and Julian agrees. Ivy tells them all that Gwen is right, Ethan has made up his mind and he won't change it. Gwen remembers when she was little she had planned to spend her entire life in this house with Ethan, and she'd imagine the parties they'd throw together, and the children they would raise. Gwen says that she always thought they were destined to be together, or that he would lose it, but she has. Gwen says that Theresa has trashed all her hopes and dreams! Julian assures Gwen that he will change Ethan's mind, but Gwen says she no longer belongs in Ethan's life. Rebecca tells herself that the truth, when she finds it out, will change everything! Julian and Ivy won't stop arguing, and Julian threatens to get Ethan back from her and turn her into the Crane that he really is. When Ivy says "Over my dead body!" Julian tells her that can be arranged. Ivy tells Julian not to threaten her, because she's already dead inside from having been married to her. Julian says they shouldn't air their dirty laundry in front of their guests, but Ivy says Rebecca knows the truth, and Gwen might as well too. Ivy tells Gwen that Alistair and her father arranged their marriage to expand their empires, and she asks Gwen if it sounds familiar? As Julian and Ivy argue, Gwen tells her mom that they should leave. However, Rebecca refuses to leave without getting the clue she needs. Gwen asks her "clue" about what? Rebecca tells her daughter that all she needs to know is if she is right, she will be getting Ethan back. Rebecca and Gwen spy as Julian tells Ivy that she is too quick to blame him for their loveless marriage, but she is the one who ran out on their wedding night. Ivy is tempted to tell him the truth, but she claims she just went to cry her eyes out. Julian remembers that Ivy returned to him, but refused to make love to him for an entire month. However, after just one night, she managed to become pregnant. Julian says if he didn't know how potent Cranes are, he'd think Ethan wasn't his son. Ivy tells Julian that they both need to calm down and face the facts, they are stuck together, and Ethan is going to marry Theresa. Suddenly, a furious Alistair calls and threatens to come back to Harmony and whip this family into shape. Elsewhere, Gwen asks her mom why she is so interested in Ivy all of the sudden. Rebecca tells Gwen that this might sound crazy, but she's not so sure that Ethan is a Crane. Gwen tells her mom that she is insane! Rebecca tells Gwen to think about it, what would it mean if Ethan wasn't a Crane, if he wasn't the legitimate heir to the Crane fortune.
At the hospital, Luis and Sheridan are still kissing and telling one another that they love the other. As they are kissing, a spying nurse calls Alistair Crane's personal assistant and tells her that Luis Lopez-Fitzgerald is with Sheridan right now, and they are kissing!
At the Lopez-Fitzgerald house, we see a replay of Ethan's proposal to Theresa. Theresa agrees to marry Ethan, and then shows her huge ring to her mom and Whitney. Pilar hugs Ethan and Theresa and says "God bless you both." Whitney also congratulates them. Ethan says that his family is going to go ballistic, but that is their problem, and at least his mother is on their side. Theresa is positive that his family will give them their blessings, but Pilar tells her not to count on it. Ethan asks Theresa how she thinks Luis will take this news? Pilar knows Luis won't take this lightly, and he will view this as betraying their father's memory. Pilar fears that Luis will do everything to try and stop them from being married. Theresa doesn't believe that, but Ethan agrees. Ethan fears that Luis will see him as the man who took Sheridan away from him. Suddenly, Luis calls home and tells them the news about Sheridan. Theresa thinks this is a miracle, and Ethan says they should all go to the hospital. Theresa hopes for another miracle, Luis' blessing.
Back at the hospital, Ethan shows up and hugs his aunt. Ethan tells Sheridan that this is a miracle, and he never thought this would happen. Ethan confesses to Sheridan that he had to take her off the respirator, and she was supposed to be brain dead for the rest of her life. Sheridan says she is fine now, so they should forget about it. Luis says it is hard for him to forget, because Ethan almost killed her! However, Sheridan says Ethan was only doing what she told Ethan to do, and if he hadn't done it, she never would have gotten her Christmas miracle. Sheridan asks Luis to let it go, so he does. Theresa says she's so glad that things have worked out, for all of them. Luis asks Theresa what she means? Ethan tells Luis that they have something to tell him. Sheridan sees the look on Theresa's face, and she realizes that this is NOT good. Sheridan asks where Gwen is? Ethan says that he has chosen Theresa, he has proposed to her, and she has accepted. Sheridan congratulates them, and Theresa thanks her. Theresa and Ethan turn to Luis, and ask him for his blessing. Luis asks to speak to Theresa in private, so they leave the room. Sheridan tells Ethan that if he is expecting Luis to jump for joy, he is mistaken. Ethan says that Theresa hoped their (Luis and Sheridan's) love would help Luis accept them, but Sheridan says nothing will make that happen. Ethan wishes there was something he can do, but Sheridan says there isn't. Ethan says that he and Theresa will marry with or without Luis' blessing, but if he withholds it, it will cast a dark cloud over their marriage. Outside, Luis tells Theresa that loving Ethan is one thing, but marrying into the family is another thing, something which he can't condone. Luis tells Theresa that Ethan has the same genes as his father and grandfather, so he cannot give her his blessing. Theresa tells Luis that Ethan's last name doesn't matter to him, he is the man she loves, and if her happiness matters, then he will give them his blessing. Luis tells Theresa that he knows she loves Ethan, but he can't give them his blessing.
Alistair's assistant tells Alistair about Luis and Sheridan's growing closeness, and he is furious. He damns them both, and knocks over his chess board.
Alistair, who is playing with a snow globe and chopping up a fruit cake, calls Ivy and Julian. He tells them that they must break up Luis and Sheridan, who are growing closer, as well as keep Ethan from marrying Theresa. Ivy refuses to help them destroy true love, but when Alistair says that Luis could learn of all their secrets, she reconsiders. She fears Luis might find out her secret, and then Ethan would hate her. She agrees to help break up Luis and Sheridan, but only if they will allow Ethan to marry Theresa. AListair agrees, but after Ivy leaves, he tells Julian there is no way Ethan is marrying THeresa. Alistair says that Ethan is the only smart one in the family, Julian has screwed up too many times, his other grandchildren are idiots, and he's leaving nothing to Sheridan because women don't deserve power. Alistair says that if Luis continues to be a problem, they may have to kill him!
Meanwhile, Rebecca tells Gwen her theory, that Sam is Ethan's father, and not Julian. She also has a plan to get them everything they want, but she has to know if Gwen is willing to marry Ethan if he isn't a Crane. Gwen says she'd have to think about it because that would mean no mansion, no money, no prestige. Rebecca tells Gwen that she has a plan that will not only get her Ethan, but the Crane money and name too. Rebecca says she is planning on marrying Julian, and she will use sex to manipulate him and convince him to adopt Ethan and make him Crane heir. Gwen loves the plan, but there is still one problem, Theresa. Rebecca says she won't be a problem once she learns that Ethan isn't a Crane! Gwen tells her mom that she will need rock hard evidence to convince Alistair, so Rebecca goes up to search Ivy's room. As she is searching, Gwen keeps Ivy busy talking. Upstairs, Rebecca looks everywhere, but she can't find any proof. As she is about to give up, she spots Theresa's laptop!
At the hospital, Ethan overhears Luis telling Theresa that he won't give her his blessing or walk her down the isle. He yells at Luis and wonders what kind of brother he is to cause Theresa so much pain. Luis says he is just protecting his family, it is Ethan who is bringing the conflict into this family. Sheridan hears them arguing and comes to stop them. Luis sees her almost fall, and he takes her back into her room. Inside, Sheridan tells Luis that she is so disappointed in him. She says that she thought he would have learned by now that love is the most powerful force in the universe. Luis says he does know that. Sheridan tells him that he should realize that Theresa will marry Ethan with or without his blessing, so is he willing to risk losing his sister? Luis is just worried about Theresa marrying into the Crane family, and wishes she could just love someone else. Sheridan asks Luis if he is sorry he fell in love with her? Luis says of course not, but she's not the Crane heir. Luis fears that if Theresa marries Ethan, his family might hurt Theresa.
Back outside, Ethan begins to have doubts about this marriage, and says if he was only a local then Luis wouldn't object. As Theresa is about to tell Ethan the truth, that he is a Bennett, Pilar shows up and stops her. Ethan begins speaking about his family, and even though he disagrees with them often, being a Crane is what has shaped his life, it is who he is. Theresa realizes, with Pilar's help, that Ethan would be devastated if he lost his family name. Ethan, Theresa, and Pilar all go in to see Sheridan. Sheridan has managed to change Luis' mind, and he gives Theresa and Ethan his blessing, and agrees to walk her down the isle. Theresa thanks her brother, and Sheridan welcomes Theresa to the family. Luis tells Ethan that his family better not hurt his sister. Ethan promises that they won't, and the two shake.