At the LF's house, Pilar has made her world famous hot chocolate. Beth and Luis sip it, and Luis tries to reason with his mom about Antonio coming home. Luis says even if he did return to Harmony, he still hasn't forgiven him. Pilar says the church teaches forgiveness, and she prays that Antonio and Sheridan will come home together. Luis says that would be a miracle. Pilar says she can feel that they are getting closer to Harmony. Pilar has to go to work, and he talks to her about it. Pilar says she doesn't enjoy working for Ivy, but wants to keep an eye on her now that she hates Theresa. Pilar leaves, and Luis catches Beth reading Sheridan's letter. Beth asks Luis if he is ready to move on with his life, and if she will be a part of it? Luis says he doesn't know if he will ever be able to get on with his life, despite the letter. However, he promises Luis that she'll be the first person to know if he does decide to move on with his life. Beth thanks him for being honest, and decides to leave. However, she says there is one thing she needs to do before leaving. Beth and Luis are under the mistletoe, so she gives him a kiss! Beth tells Luis she's always here if he needs her, and then she leaves.
On the boat, Brian makes Sheridan some of his mom's world famous hot chocolate, and Sheridan knows the secret ingrediant, cinnamon. She flashes back to having it with Luis long ago. Sheridan begins to think that maybe the key to her past is in Harmony. Sheridan has more memories of being in harmony with Luis. She can't wait to get to Harmony, and she also thinks Brian should look-up his family. She says maybe Christmas will soften his brother's heart, but Brian isn't sure. Sheridan says they did make wishes on the Christmas star! Brian reveals to us that his wish was that nothing takes her away from him. Suddenly, the wind dies and the sea calms, which slows their progress to Harmony down. Tabitha, who is watching them from the scroll, decides to conjure up some wind to help them get to Harmony by Christmas. The wind picks up, and Brian says they should be in Harmony in no time!
At the mansion, Ivy waits for someone to show up from Europe. Ivy has had the maid from the hotel flown to the states to question her about what happened on Theresa and Julian's honeymoon. Ivy is positive that Theresa is pregnant with Julian's child! Ivy plans to hire the maid, and then have her let the truth come out! Ivy says that will be the end of Ethan and Theresa once and for all! Later, Sheila, the made from the resort, shows up. Ivy talks with Shiela, about her problem with Theresa. Ivy shows Shiela a photo of Theresa and asks if this was the woman she saw in Mr. Crane's bed? Shiela says that it is. Ivy thanks Shiela, and then hires her to work on here. Shiela thanks her, and Ivy thinks she finally has the proof she needs to be rid of Therocita once and for all!
On 4th street, Theresa loses it when she sees the Teddy bear. Chad tells Whitney that he knows what Theresa's secret is, and it will destroy Theresa and Ethan! Ethan asks what he did? Whitney says he did nothing, she is just emotional because it is Christmas. Whitney tells Theresa that she has to pull herself together or Ethan will figure out the truth. Theresa says that can't happen! Foolish Ethan thinks Theresa was crying because the teddy bear made her think of Lynn. Ethan says that she must be torn up by what Lynn almost did, that she almost terminated her baby. Ethan says that is why he loves her, he knows if she ever got pregnant that she would put the baby first. Theresa switches the topic and asks how his meeting went with his new client? Ethan says not well, he didn't get the job because the company didn't want to upset the Cranes by hiring him. Suddenly, Ivy calls Ethan and asks him and Theresa to come to the mansion right away. Theresa worries, and thinks Ivy is up to no good.
Back at the mansion, Pilar talks to Ivy about Antonio coming home. Ivy tells Pilar that she is glad for her, and just thought Pilar might be happy for a different reason. Ivy says she thought she might be happy because she is going to be a grandmother! Pilar says she doesn't know what she is talking about, but Ivy says her eyes have revealed the truth. Ivy says she knows now that Theresa is pregnant! Shiela, the new maid shows up, and Pilar wonders why Ivy hired someone with her knowledge. Ivy says that Shiela just arrived to the states from the Crane resort, in Bermuda. Ivy reveals that Sheila saw Theresa and Julian in bed together, and now she has Theresa right where she wants her! Pilar begs Ivy not to do this, but Ivy says she will do this! Suddenly, Ethan and Theresa show up! Pilar grabs Theresa and speaks to her in private, while Ivy greets Ethan, Whitney, and Chad. Ivy tells Ethan that she has an early Christmas present for him and Theresa. Shiela shows up, and Ivy smiles. Outside, Pilar warns Theresa that Ivy knows the truth!
Downstairs, the Bennett's totally deck out Tabitha's house with Christmas decorations as a surprise for her! Sam talks to Grace about signing the annulment papers, but Grace doesn't want to think about that on Christmas. Sam asks if she is having second thoughts? Grace says no, and she says she will have the papers signed tonight. Grace meets up with David outside, and asks him to please sign the annulment papers. David tries to convince her that this is a mistake, that she still loves him. Sam shows up to protect Grace from David's badgering. Sam tells David that he will sign those papers, and he and Grace will move on with their life together. Sam demands David sign the papers, but he refuses to without a lawyer present. Sam wants him to sign now, but Grace tells him to take the papers and look them over. He leaves, and Sam tells Grace that she is being too nice, and he has a bad feeling about this guy.
Meanwhile, Miguel wonders why Charity isn't helping decorate with the rest of them. He says she is acting very odd, and asks Kay if she knows what is going on. Kay tells Miguel to relax, maybe he's just being a little sensative. Kay tells Miguel that they'll have a wonderful time at the nutcracker tonight. Miguel thanks Kay for giving them those tickets, and he decides to go get ready to make tonight very special. Miguel and Charity plan to meet at the ballet, which is all part of Kay's plan. Charity suddenly takes ill, and Kay decides to go to the ballet with Miguel!
Tabitha finally sees her suprise, a fully decorated house complete with angels! The friends in the basement growl, and Tabitha says she needs to go check on her pipes. Tabitha leaves, and Timmy looks at an angel statue, which transforms into the little angel girl. The angel girl, who is REALLY growing up, tells Timmy that Christmas wishes can come true, so he may be turned into a real boy. Tabitha shows up and tells the angel girl that she won't allow Timmy to become a real boy! Tabitha chases the angel girl away, but before going, she tells timmy that there is hope.
Julian and Rebecca arrive back at the mansion. To celebrate their first Christmas together, Rebecca says she had anything of Ivy's thrown out and new stuff bought. Before going into the mansion, they take a trip to the shed to shag a bit. When they finally get to the mansion, Rebecca finds that her tree has been thrown out, by orders of Ivy!
Meanwhile, Pilar warns Theresa that Ivy knows she is pregnant with Julian's child. Theresa begins to panic, and Ethan shows up and says that his mother is waiting for them, she has a present for them. Ethan and Theresa go inside, and Theresa tells Whitney that Ivy knows! Ivy then says before they get started, she has someome to introduce. Ivy introduces Shiela to Theresa and Ethan. Suddenly, Rebecca and Julian show up, and Ivy thinks she can destroy Julian why taking down Theresa. Rebecca is furious with Ivy, and announces that she and Julian are now married, so she is mistress of this house. Ivy says she is still Mrs. Crane, and this is still her house! Ivy is glad everyone is all here, and she asks Julian if he remembers Shiela? Julian says she seems somewhat familiar. Theresa thinks she is doomed, so Pilar decides to do something about this. Pilar explains to Sheila about Ethan and Theresa's history, and why Theresa went to the islands. She says that while down there, Julian got Theresa drunk, and married her. Pilar says that Ethan and Theresa are to be married soon, and have their whole life ahead of them. Ivy says that is enough, and tries to get Shiela to blab what she knows about Theresa and Julian. Shiela caves and says she doesn't remember seeing Theresa there. Pilar then tells Theresa that she has to be honest with Ethan about everything if she hopes to keep him. Theresa looks at the card from the abortion clinic and says this is her only hope. Ivy scolds Shiela, but she says she couldn't do it to Theresa. Ethan asks his mother what is going on here? Ivy says she just wanted him and Theresa to stop by to give them a check to give to the childrens home, in honor of Sheridan. Later, Ivy tells Theresa that her plan may have failed, but she won't have to wait long before she begins showing! Theresa walks off, and tells Whitney she's going to the clinic.
Julian and Rebecca go to the study to sip champagne and talk. Rebecca tells Julian that it is a good thing he never took Theresa to bed, because if she got pregnant, he would have had a hard time getting out of that marriage, and Luis would have killed him!
Over at the Bennett's new place, Sam has had the whole place decorated as a surprise.
Ivy meets with David to discuss the next part of their plan. David doesn't like what Ivy is doing, because Sam and Grace love one another. He tells her about the annulment papers they are pushing him to sign. Ivy tells him to just stall, because once her surpise arrives, Grace won't want to annul her marriage. Ivy says she has another surprise arriving tonight, and once it is here, Sam and Grace will be finished! David says that family means everything to Grace, so this surprise will get the results Ivy wants. Ivy says that is what she is counting on. David begins speaking about how good of a woman Grace is, and Ivy accuses him of falling in love with Grace. David tells Ivy that what she has planned for Grace is too cruel. Ivy says she has suffered too, she has spent so many Christmas' without Sam! Ivy says beneath all of Grace's sugar and spice, she is a viper, which is why he belongs with her. Ivy tells David that they have to be careful, if anyone saw them together it would be a disastor.
Later, Ivy heads over to the Bennett's to give them a housewarming gift, and David happens to show up at the same time to talk to them about the papers. Ivy tells David to get out of here, they can't be seen together! Suddenly, Sam finds them together!
At the Lopez-Fitzgerald's, Theresa thanks her mom for convincing Shiela to remain quiet. Pilar says all she did was buy her more time, she cannot keep this pregnancy a secret any longer. Theresa blurts out there is another way, and Pilar asks her what she just said? Theresa says nothing, and says she thinks she's going to take a walk. Pilar doesn't want Theresa to leave, and tries to stop her so they can talk. Theresa's purse falls to the floor, and Pilar bends down to pick it up. That is when she sees the card from the abortion clinic. Pilar begs Theresa to tell her that she's not going to have an abortion. Theresa says she is going to have an abortion, it is the only choice she has. Pilar says she has choices, but Theresa says if she tells Ethan she will lose him, and if Julian finds out he might take the baby and raise it as a Crane. Pilar tells Theresa that she is in denial about this, because if she stopped and thought about that baby inside her, she could not terminate it. She tells Theresa that this is not the quick fix she thinks it is, if she allows her baby to be terminated, she'll never get over it. Pilar thinks she has failed Theresa, and then she becomes angry and says she will not allow her to do this. Theresa tells her mom that she cannot stop her, she is a woman now and will make her own decisions. Pilar says doing this now, at Christmas, is an insult to all that is holy! Theresa says she has to do this now before she begins to show. Theresa also says that if Ethan learns she is pregnant with Julian's child, he will kill him and be put in jail. Pilar asks what will happen when Ethan and Luis learn she had an abortion? Theresa says they won't find out. Pilar reminds her that if she does this, she will lose her soul. She begs Theresa to listen to that part of herself before it is too late. Theresa leaves for her appointment, which devastates Pilar.
Kay has a nightmare that Charity broke out of the block of ice and came after her. Miguel was furious with her, and Kay tried to make Miguel realize that she loves him. Charity accusses Kay of being the evil in Harmony, and she says she will make her pay! Miguel wakes Kay up from her nightmare, and tells her that it was only a dream and it can't come true. Meanwhile, in the cave, we see Charity frozen in the block of ice, but her hand is moving! Later, Miguel calls Charity to see how she is feeling. Charity says she is still feeling tired, and wants to be alone so she can rest. She also asks him not to call her anymore because it keeps waking her up. Miguel doesn't undertsand why Charity is acting so distant. Kay suggests they do something today, but Miguel says he's not in the mood. Miguel takes off, and Kay decides to go check on the real Charity. Kay heads up to the cave, which is still sealed shut. She can't get inside to check on Charity, but then the book of spells appears! The book blows open the sealed cave so Kay can check on Charity. Kay finds that Charity is still stuck in the ice, and she begins to go soft. However, she talks herself out of feeling guilty, and tells Charity that she is stuck in there for good! Kay doesn't notice that Charity keeps moving her hands!
On the boat, Sheridan and Brian sail closer to Harmony. As they do, Sheridan tries to convince Brian to go see his mom. He remembers the wonderful Christmas dinners she used to make, and has a flashback to when he was a kid. He also says he remembers the family his mom worked for, and the little girl they had who his mother was like a second mother to. He remembers loving the little girl because she had the most beautiful hair in the world. Sheridan says she would like to meet his mother, and Brian says maybe she will. As they reach Harmony, and the docks, Sheridan gets the feeling that someone is waiting for her there.
Theresa meets Theresa in the park, and they prepare to head to the clinic. However, Ethan and Chad show up with gifts, and they say it is time to head to the orphanedge to give the kids there presents. Whitney says they have something they need to do, but Ethan says it will have to wait because nothing is more important than these kids, and he knows Theresa feels the same way. They all head to the orphanedge, and while there a man asks Theresa to hold one of the children, who hasn't stopped crying since his mother abandoned him, so that he can help another child. Theresa holds the baby, and it stops crying! Everyone is amazed. Pilar shows up, and Ethan says he knows Theresa will make a great mother, and he can't wait until she is pregnant. Theresa looks at the baby and holds back tears.
At the Bennett's, Sam asks Ivy and David what they are doing here, together? Ivy says she came to give them a housewarming gift, and David just happened to show up. David claims he is here about the annulment papers, but he says they need a notary republic before they can be signed. Sam calls one, and Grace invites Ivy and David inside. Ivy and David conitnue to bicker about what they are doing to Sam and Grace. Ivy doesn't care, she says Sam will be hers, and he will be once her little surprise arrives!
At the hospital, Timmy is excited that he is about to get a heart, but Tabitha soon discovers the reason they are here is because one of the patients in the psych ward invited them to the yearly christmas show they put on. Tabitha and Timmy sit and watch the show, wondering who could have invited them. Finally, Norma coems out, dressed as Baby Jane, and sings a song. When she is through, she reveals herself to a frightened Tabitha and Timmy.