At the Horton house, Bo, Hope, and Shawn D. are opening presents. Greta is watching them open presents. Mickey, Maggie, and Mike drop by with presents for all. Mike sees Jeremy’s ornament on the tree and misses him. Mike has to cut out before dinner to go to the hospital to get ready for the hospital party, Mike is going to read the Christmas story. Alice asks Bo and Hope if they will be there, but Bo says he has somewhere he and Hope need to go and Hope asks where?
Bo, Hope, and Greta go out for a walk and run into John. Greta is so happy and plops down into the snow to make a snow angel. While she does that, Hope has another memory. Hope runs into Stefano, who kisses her hand. She tells him that he always makes her feel safe and loved. Stefano tells Gina Darling that he'll always keep her safe. Bo asks Hope what is wrong and she says a lot. Suddenly, Billie shows up and wishes them a merry Christmas. Hope thanks Billie for signing the divorce papers. Meanwhile, John gives Greta a snowglobe because he though she'd like it. Greta says it's wonderful and reminds her of a snowglobe she bought him years ago. Greta tells John she has a present for him as well, some opera glasses. He is surprised and says he isn't a real opera fan. Greta tells him he's wrong, he knows everything about the opera. John tells her no he doesn't, but Stefano does. Hope sees the opera glasses and remembers meeting Stefano for their weekly date to the opera. Bo asks Hope what is wrong and she says nothing. Shawn D. shows up and asks Bo if he's ready to run the errand. Hope wants to go with them. Bo grabs her and Shawn D. puts the blindfold on her.
Bo and Shawn D take Hope down to the docks and surprise her with the Fancy Face 2. Hope asks how they did this and Bo says they had their ways. Hope gives Bo a hug and has another memory, one of her hugging Stefano.
Billie drops by Austin and Carrie's to spend Christmas morning with them. Austin is anxious to get over to see Sami to find out about her breakthrough. Austin invites Billie to go with them to the pub later, but Billie doesn't know. Austin keeps talking about Sami's breakthrough, but Carrie says "IF" Sami remembered, there are still a lot of questions to be answered.
Roman and Eric show up at the penthouse where Sami, John, Marlena, and the kids are. Sami is so happy because she remembers she didn't shoot Franco. Sami, Roman, Eric, and Marlena go to the Brady Pub. Everyone is very happy that Sami has gotten her memory back. Austin and Carrie show up just as Caroline tells Sami that they believe her. Sami thanks them, looks at Carrie, and then says that not everyone believes her. Carrie says she wants to believe her, but there are still questions as to how the gun ended up in her hand. Nicole and Taylor show up and Eric gives Nicole some fancy earrings. A delivery man shows up with a present for Nicole from Lucas, a diamond bracelet! Nicole is thrilled, puts the bracelet on, and says she always wanted a diamond bracelet.
Marlena gets ready to go to the hospital Christmas party and Carrie tells Marlena that she doesn't need a chaperone for the party. Marlena reminds her that Mike is going to be there. Later, Billie shows up at the pub to see Roman. She spots Austin with Will and Sami and asks where Carrie is.
Mike and Laura arrive at hospital for the party, Craig is dressed as an elf and Nancy is Mrs. Claus. Craig tells Mike that he must be relieved that Ali has taken the day off. Once again, Mike apologizes to Craig for accusing him of telling Ali that he was in love with Carrie. Craig tells Mike that it's okay as long as he realize it is all in Ali's imagination. Carrie shows up at the hospital with Marlena and Shawn. Shawn is dressed as Santa and hands out gifts with Craig and Nancy's help. Marlena and Laura hug each other and wish each other a Merry Christmas. Alice tells Mike, who is getting ready to read the story, that Tom would be proud of him. John and Greta arrive and John introduces Greta to Mike. Mike tells her that he will be working with Dr. Renault to help her. Mike then tells the story of Christmas for everyone. Later, Mike gives Carrie a gift when they are alone on the terrace, a golf club because she said she wanted to learn once. Carrie gives Mike a gift as well, golf balls! Mike and Carrie go back inside, but get caught under the mistletoe. Carrie hugs Mike as Marlena watches. Alice asks John to lead them in a carol, so they sing Silent Night.
Kate and Lucas arrive at the nursing home to see Victor for Christmas. Kate tells Victor that she misses him and needs him so much, especially with all the Sami business going on. Kate wishes Victor could give her a sign to know he's here. She tells him that not a day goes by without her thinking "What would Victor say? How would Victor react?" Kate explains to Victor what happened with Franco and how Lucas shot Franco to save her, and then she tells him how she framed Sami for the murder. Kate tells him that he's the only one who understand why she hates Sami so much. She says she's not proud of what she did, but she framed Sami only to save Lucas. Kate tells Victor she could really use his support and blessing. Lucas tells Victor he needs that too and they need to unite as a family against Sami. Victor manages to say yes, which makes Kate's day.
Hope meets with Lilly at the Javaweb for espresso. Lilly asks Hope what is wrong and Hope tells her that she's had very frightening memories. Lilly asks why these memories are frightening her. Hope says these memories are different from the others, which were always happy, the new memories are dark and Stefano is in them. Hope tells Lilly that she could sense a deep connection between herself and Stefano. Hope says for the first time she's actually terrified about what she might find. Hope doesn't understand why this is happening to her now, just when everything was going right. Lilly asks Hope if she's told Bo and she says no because she doesn't want to upset Bo. Lilly asks Hope what she is going to do now and Hope says she can't commit to Bo until she knows the truth. She says until she knows what the connection between her and Stefano was, she can't be with Bo. Shawn D. shows up and wishes Ms. Faversham a merry Christmas. Shawn D. leaves, he was just on his way to see a new horror flick. Hope says Shawn D. is desperate for them to be a family again, which is why she must learn the truth soon. Ms. Faversham tells Hope she has an appointment with the hair dresser and has to go, but tells Hope she's here for her anytime she needs her.
Hope goes for a walk and remembers more about her encounter in the alley with Stefano. Suddenly, a hand is placed on her shoulder. Hope turns around to find that However, it's only Bo. Hope hugs him and tells her that she is so scared, but she wants to go to Europe now and search for her past.
Rolfe is working on the satellite, which is almost in position. This pleases Stefano, but Rolfe tells him it will only be a little while longer. Stefano says Hope is most likely remembering her times as Gina and he can't let her remember he was involved with him or that she was a master thief. Rolfe says the transformation should occur soon, unless Salem is hit by a major storm or dense cloud coverage, which would block the satellite’s signals from activating the chip in Hope's brain. Stefano tells Rolfe that he better make sure this transformation goes off without a hitch. Rolfe tells Stefano that he's unable to control the weather. Stefano tells Rolfe to strengthen the signal, but Rolfe says that may make Hope remember the truth. Stefano says he can't have Hope remembering she was an art thief. Stefano says he has to come up with something to distract Bo and Hope from digging into Hope's past, and he thinks he knows just what to do. Stefano makes a call and tells Rolfe that everything has been taken care of.
Shawn D. goes to the movies and is suddenly grabbed by a mysterious hand!
Ali talks with Nancy at the hospital and tells Nancy she has a gift for Mike. Nancy says she thought she and Mike broke up and Ali tells Nancy that is the farthest thing from the truth. Mike is trying to work in his office, but all he can think about is psycho Ali. Ali shows up to see Mike and wishes him a merry Christmas. Ali gives Mike a present and he tells her she shouldn't have. He opens it and its a watch. Mike tells her its too extravagant, but Ali says she can't return it because it's been engraved. On the back of the watch it says "With love, forever, Ali" Ali tells him this way she can be with him all the time, forever. Ali tells Mike that he says he doesn't want a commitment, but their kiss on Christmas Eve told a whole other story. Mike tells ALi that it is time he tells her the whole truth. Ali tells him that there is no need because she understands everything. Ali tells Mike that since Judy has been away, she's been carrying out some of her duties. She tells Mike that Dr. Renault should be arriving today and she has already set up a room for him. Ali tells Mike she has to get back to work, but she'll see him later.
Austin and Carrie return home and Austin can't stop talking about Sami remembering what really happened. Austin tells Carrie that she could be happy for Sami, but Carrie just can't get by the fact that Sami was found with the gun in her hand and she confessed to killing Franco. Austin and Carrie then begin to argue. Austin says Carrie of sounding like she doesn't want Sami to be found innocent. Carrie says she wants Sami to be found innocent because than she can raise Will herself. Austin looks at Carrie and tells her that she can't believe she said that. Austin tells Carrie she is selfish and doesn't give a damn about Sami's well being. Carrie tells Austin he is twisting her words around and making her look like the bad guy. Carrie asks Austin if he so sure Sami didn't kill Franco, than who did? Austin tells Carrie that she's so obsessed with getting revenge on Sami and then tells her that perhaps the old Sami has been reborn in her! Carrie tells Austin that is cold and that the old Sami is right where she has always been. Carrie tells Austin that Sami is tearing them apart, but Austin says she's doing that on her on.
Carrie goes to work and Mike shows up to see her. Mike realizes this is a bad time, but Carrie tells him it isn't. Mike asks her if she's finished the press release on Dr. Renault and she says she forgot, but will get right on it. Mike asks Carrie if she's talked to Austin about Sami's breakthrough and Carrie says "Oh yeah!" Mike says that he finds it hard to believe Sami. Carrie tells Mike he seems to be the only one who agrees with her on that point. Carrie starts crying and asks Mike to hold her. He tells her of course, and holds her.
Ali runs back into Nancy, who tells her that she might be deluding herself about Mike and calls her desperate. Ali says that she is not deluding herself, Mike loved her present and told her that he loved her when they were in bed together on Christmas Eve.
At the penthouse, Marlena asks Sami if she knows who shot Franco. Sami says she doesn't know. Mickey is there as well and tells Sami that he needs more information to convince the judge of her innocence. Suddenly, Sami exclaims "I know who shot Franco!" Sami says what if Franco caught a drunk Lucas kidnapping Will and he used the gun he gave Sami to keep Lucas from leaving with Will, but perhaps they struggled, Lucas got the gun, and then killed Franco. Sami says that if Lucas kidnapped Will, Franco knew she would call off the wedding to find him. Marlena thinks Sami's theory makes sense, but Sami still can't explain how the gun ended up in her hand. Roman says perhaps Lucas tossed the gun and maybe Sami picked the gun up before fainting, or Lucas could have framed her. Maggie doesn't think Lucas would do such a thing, but Roman says it would explain Lucas' phone call to Kate and that they must be covering the truth up. Roman says all they need to do now if prove this theory. Austin shows up, without Carrie, and Mickey and Maggie leave. Sami tells Austin that she thinks she found a way to prove her innocent. Roman tells Sami that he will prove she didn't kill Franco.
Kate is still with Victor and he is speaking. Victor tells Kate to please stay with him. Lucas tells Kate that he can go home and the driver can come back to get her later. Victor tells Lucas to stay away from Sami. Kate says they won't have to worry about Sami much longer because she'll be convicted of Franco's murder, unless she somehow remembers. Lucas tells his mom that he plans to ask Nicole out for New Years eve and he knows he can convince her to drop Eric for him. Victor tells Lucas to go after Nicole if he wants her. Lucas thanks Victor for agreeing with him. Lucas leaves and Kate tells Victor how she is proud of Lucas and after Sami goes to prison, Lucas will be reunited with Will and nobody will know the truth. Victor adds "unless Sami remembers." Kate says she doesn't want to talk about Sami again. She tells him how she hopes they will be a family again soon. Kate tells him how pleased she is with the progress he's made. Victor tells her that he's determined to get well for her. Victor tells Kate that he can't stop thinking about the New Years eve they spent together, and then they have a flashback (a fake one I think). Victor tells Kate that he wants to be with her always, and he doesn't hate her for what she's done to Sami. Victor tells her that he would never hate her and loves her.
On the way home, Lucas calls his lawyer and tells him to file papers to battle Austin for custody of Will. Lucas says he was willing to meet Sami half way, but if she wants a war, she's gunna get one. Lucas thinks he's one and says Sami will never have power over him again. He says Sami will get everything she deserves this year and he will get everything he wants. Lucas then starts having fantasies about Nicole. Lucas tells the driver that he wants to start celebrating New Years early. Lucas goes to Nicole's place. Inside, Nicole and Eric are kissing and Nicole stops to answer the door. Lucas tells Nicole that he wants to take her out for the evening and promises to make it one to remember.
Roman asks Abe to reopen Franco's murder, but Abe just can't justify reopening the case because of Sami's theory. Abe tells he needs rock hard logic and a list of suspects to reopen the case. Roman tells Abe that is what he was just about to give him. Roman tells Abe his and Sami's theory about Lucas shooting Franco and framing Sami. Still, Abe has questions. Roman says Lucas probably figured nobody would believe Sami anyways, and Abe asks how they can believe her now? Roman says if Sami was going to lie about this, why did she wait this long? Roman says that he think Kate helped Lucas cover up what happened and they have to reopen the case. Still, Abe says there is no evidence to place Lucas in the room, or even in the house. Roman begs Abe to reopen this case.
Austin is back with Sami and they are talking. Austin is afraid Abe won't reopen the case because this sounds too good to be true. Sami asks Austin if he no longer believes her? Austin says he believes her, but how did the gun get in her hand? Sami says it is simple, Lucas killed Franco and put it in her hand. Sami tells him her theory and Austin can't believe that his mom and Lucas would do this. Sami says they did and her dad is going to start investigating Lucas right now. Roman shows up and Sami asks her dad if Abe reopened the case. Roman says no. Sami is angry and says she'll go force the truth out of Lucas, but Roman says no she won't. Roman says they have to be smart about this. ROman tells Sami that he has the perfect way to get to Lucas.
Rolfe comes to see Stefano, who is pleased with the steps he's taken to keep Bo and Hope distracted until Hope is turned back into Gina. Rolfe asks how and Stefano says he's had Shawn D. kidnapped and will hold him ransom for one million dollars. Rolfe asks where they are supposed to come up with that money? Stefano says John will give it to them, but it will take time. Rolfe thinks this is risky, but Stefano says the kidnappers have no idea that he is the one who hired them.
A man and woman take a gagged Shawn D. to a hotel room and tie him up to the bed. Shawn D. remains cool, which impresses the kidnappers. Shawn D. tells them that his dad will find them and they'll go to jail. The kidnappers call Stefano and he gives them orders as to what to do. He tells them that they will get the full one million dollars IF they hold Shawn D for the amount of time they agreed on.
For her birthday, Bo takes Hope to their new boat to spend the day alone. Hope says she feels like they are starting all over again like when they were first married. Bo shows Hope their wedding picture and Hope remembers when she and Bo first moved into the boat. Hope says she thought it burned up with the boat and Bo said it did, he made a copy of Mrs. H's. Bo hangs it up and tells her there is even room for another wedding photo next to it. Bo gives Hope some presents, one is a brand new tookie bear. Hope then has another Gina memory, Stefano giving her a very expensive piece of jewelry for her birthday. Bo realizes something is wrong and Hope tells Bo about her memories of Stefano. Hope says they have to get to Count Olenska's castle to find out what Stefano is hiding. Bo says they will, and they'll do it together. Bo puts on their song and dances with Hope. Hope remembers dancing with Bo on the deck of the old Fancyface, Bo kidnapping her from her wedding to Larry, when they first made love, when she and Bo married, their honeymoon, and the birth of Shawn D. Bo tells Hope that he has something very important to ask her, something he's been waiting for the perfect moment to ask her. The phone rings and Hope asks him to hold that thought. Shawn D is on the phone, and then the kidnapper takes the phone and tells Hope it will cost her 2 million dollars to see her kid again!
At Nicole's place, Lucas asks Nicole to go out with him for New Years, but Eric pops his head out the door and says Nicole is busy. Lucas offers to give Eric a ride home, but Eric says he and Nicole have plans. Lucas says he needs to borrow Nicole for a second to talk about business. Lucas tells her that if she wants to make it to the top at Titan she has to come with him. Nicole tells Eric she has to go with Lucas because this is business. She asks Eric to wait and promises to make it all worthwhile. Eric agrees, but asks Nicole not to tell Lucas that Sami has her memory back. Nicole leaves with Lucas and tells Eric that she'll see him later. Eric comments to himself that Lucas should enjoy his ride with Nicole because soon he'll be behind bars. Eric gives his dad a call and tells him that Lucas is back in town, but Kate isn't. He tells them that they went to see Victor.
Lucas and Nicole drive off in Lucas' limo. They stop at an empty piece of property and Lucas tells her that is where he's building his dream home for him, his son, and someone special. Lucas shows Nicole a piece of paper and she tells him it is amazing. Lucas then has this fantasy about being married to Nicole. Nicole has just won some horse show at the country club they belong to. As a congratulations, Lucas buys her an expensive gown. Nicole snaps him back and asks what his house has to do with her. Lucas says he wants to map out a long range plan for her, which includes her venturing into acting. Lucas wants to take her back to his place to show her more stuff, unless she has to go back to Eric. Nicole and Lucas go back to the Kiriakis mansion. Nicole's goes to the bathroom and decides to call Eric to tell him that she's running late, however, she decides not to because he might get angry. Nicole says she can't believe Lucas is the monster Eric makes him out to be. Downstairs, Lucas is startled by what he sees in the living room. Roman walks in and asks Lucas if it looks familiar.
At the hospital, Ali is looking for Mike. Nancy tells her that Mike is with Carrie and she thinks Carrie is telling Mike she is leaving Austin for him. Ali tells Nancy that she's lost her mind, there is no way Mike loves Carrie. Ali tells Nancy about her perfect little romantic evening with Mike the other night, including how she crawled into bed with him. Nancy is shocked by how Ali is obsessed with Mike. Ali leaves to talk with Laura and Craig asks Nancy what Ali's done now. Nancy says that Ali is losing touch with reality and she's having second thoughts about using her. Craig tells Nancy that Ali is obviously just making this stuff up. ALi thanks Laura for helping her with Mike's surprise because it went better than she hoped. Ali says she thinks 1999 will be a whole new year for her and Mike. ALi has to leave when she is beeped and Nancy and Craig question Laura about Ali and Mike. Laura says Mike and Ali must have worked things out because they had an intimate and romantic dinner on Christmas Eve. Later, Nancy tells Craig that they may not need Ali anymore because Austin was seen storming out of Carrie's office earlier.
Carrie hugs Mike and tells her she's so glad to have him in her life. She then pulls away and says "What am I thinking, this is crazy!" Carrie says she shouldn't be here with him. Mike says she is and he just wants to help. Mike asks her what happened and Carrie tells him about her fight with Austin. Carrie tells Mike that she doesn't even know if she wants to work things out with Austin anymore. Carrie then says "what am I saying? of course I want to work things out with Austin." Carrie tells Mike that Marlena knows they kissed and thinks they are in love and she is using her arguments with Austin to be with him. Carrie then says "Oh my god, she's right, that's exactly what I'm doing." Carrie says Austin is being stubborn, but Mike says Austin probably thinks she's being stubborn too. Carrie thanks Mike for confirming that she is a horrible person and decides to leave. Mike tells her she can't just say something like that and walk out. Mike tells her that he's trying to do the right thing, but whatever he does seems to make things worse. Carrie says this is not his problem, but Mike says it is because they keep turning to each other because their feelings run deeper than they will admit. Mike looks at Carrie and tells her that he loves her.
On the Fancy Face 2, a man tells Hope on the phone that Shawn D. has been kidnapped and they want 2 million dollars. Bo wants to make sure this isn't a trick and asks Shawn D. what the name of their new boat is. Shawn D tells him it's Fancy Face 2 and then asks his dad to help. The kidnapper calls Stefano for some advice as to what to do next. The kidnappers then tell Bo and Hope not to go to the cops or the FBI and that they will be in touch. Hope doesn't understand who would want to kidnap their son and cries in Bo's arms. Bo calls Abe, but Hope stops him and says no! Bo says he has to tell Abe. Bo and Abe keep the kidnapping very secret and a trace is put on their phone. Bo is positive Stefano is behind this and decides to go get some answers. Hope has more Gina memories and swears to kill Stefano if something happens to Shawn D.
Shawn D. asks his kidnappers for a drink and they give him a soda. He asks why they are doing this and they says the less he knows the better. Later, Shawn D struggles to get free, but one of the kidnappers tells him there is nowhere to run and no one to help him.
At the townhouse, Rolfe has given Vivian some medication and Stefano decides that it is time to remove the device out of Vivian's tooth. Rolfe says if he doesn't use the remote anymore, the device is harmless and can just be left in.
Vivian is busy getting herself all prettied up for New Years and decides to see a dentist for her tooth. Vivian makes a call to her dentist, but starts picking up hip-hop music and screams stop! Stefano runs in and asks what is wrong. Vivian says she was hearing a rapper, Ice-Mix-Master-Miester or something. Stefano becomes worried that Vivian is still hearing voices, but she says she just wants to enjoy the evening. They dance and Vivian asks Stefano if he is worried about her health. Stefano says he is and makes a resolution to help her get well again. Vivian says that is nice, but he can't, which is why she needs to redo her will. Stefano says they shouldn't talk about such morbid things. Vivian says they shouldn't talk at all and kisses him. Bo shows up to see Stefano and tells the old man that it is time for them to talk.