Di was at home and Aidan came in. Aidan announced he still had no leads in Simone and Erin's case. Di then said she had to go to work. Aidan assumed she meant the casino, but Di informed him that she was now working at Fusion. Aidan was upset and said she could not work there. Di said there was plenty of security and assured him that she would be fine. Aidan stated that the security team was having a hard enough time with the regular staff and did not need Di added into the mix. Di would not change her mind. Aidan warned that the killer might go after her. Di said that was her plan. Aidan was not happy with this plan and said he did not want to lose Di. Di explained that she was capable of taking care of herself because of her rough criminal past. Aidan was not convinced, but Di would not back down. Di said she and Erin shared a wonderful moment the night Erin was killed. So, Di felt obligated to nail the murderer. Then, Di declared that Aidan could not stop her. So, Aidan gave in and told her to go. Aidan then kissed Di and said he had her back.
Ryan and Annie were at the penthouse. Ryan was crying when Emma came in the room. Emma immediately hugged Ryan and gave him a "feel better" card. Meanwhile, Ryan, Annie, and Emma did not see Kendall at the door with Spike. Kendall watched as Ryan held Emma and Annie leaned her head on Ryan's shoulder. Kendall looked distraught and left. Then, Annie and Ryan thanked Emma and put her to bed. After the little girl was asleep, Annie stated that children always want to make things better. Annie then told Ryan that he was entitled to be upset. Then, Jonathan and Amanda came in and said they found something of Erin's. So, they showed Ryan the comic book that Erin saved. Ryan could not believe that she kept the comic he gave her so long ago. Annie then stated that Ryan should not feel badly because he obviously meant a lot to Erin. Jonathan heard this and realized Ryan was feeling guilty again. Jonathan explained that they did not resent Ryan for leaving them. Ryan still believed he was a coward, but Jonathan said Ryan was a hero. Jonathan also said he and Erin loved Ryan. Then, Jonathan heard Emma make a noise upstairs and thought it was Erin for a second. Everyone looked sad and Jonathan apologized. Jonathan then announced that he could not stay in the penthouse anymore because he kept expecting to see Erin. So, Ryan offered to let him stay in his condo, but Jonathan refused because Ryan may be moving soon. Amanda then asked him to stay at Wildwind. Jonathan asked if Annie would be alright living alone in the penthouse. Annie said she would be fine and encouraged him to move into Wildwind. Then, Jonathan and Amanda left. Ryan thanked Annie for her support of Jonathan. Annie said she cared about Jonathan and Ryan. Ryan believed Annie was amazing. Ryan then caressed her cheek with his hand and kissed her.
Colby was in Josh's hotel room. She was rolling on the bed and calling out Josh's name when Josh walked in. Josh was very agitated when he saw Colby and accused her of trying to get him into trouble again. Colby claimed she just wanted to talk, but Josh did not believe her. So, Josh asked the maid to come inside and be his witness. Josh wanted to protect himself from another one of Colby's lies, like he committed statutory rape again. Then, Josh searched the room because he assumed Colby planted something in there. As Colby proclaimed her innocence, Kendall came in. Kendall asked Josh to watch Spike and then threw Colby out of the room by her hair. Josh was impressed, but knew Kendall was revved up by something else. Kendall proceeded to explain that Annie was sticking her claws into Ryan by taking advantage of Erin's death. Josh asked why Kendall cared since she had Zach. Kendall then obscurely mentioned David and a lie he told her. Josh was confused, so Kendall told him that David claimed Ryan was Emma's father. Josh believed it was a typical lie David manufactured to hurt people. Still, Kendall said she could not forget it and asked Josh to help her with a DNA test. Josh said it was a long shot that Ryan fathered Emma. However, Josh said it was a possibility that Greg Madden used his own sperm to inseminate Annie. Josh asked if Kendall would tell Annie and Ryan about the test results. Kendall stated she would not tell them if Ryan was not the father. Still, Kendall was not sure if she would tell them if Ryan was the father. Josh then asked why she cared if Ryan was the father. Kendall worried that Ryan would not spend as much time with Spike and would end up settling for Annie. Josh stated Kendall was just like Erica, but agreed to help her get the DNA results.
Colby was in a restaurant watching Josh and Kendall on her computer via the nanny camera she hid in the hotel room. Then, Sean came in and caught her spying on them. Sean asked for details and Colby hesitated, but finally told him everything. Sean said she was sneaky, but it was cute. Colby explained that JR was not capable of doing this himself, so she had to do it for him. Colby believed this was the best Christmas gift she could give JR. Sean then expressed his desire to get Jeff away from Erica. Colby claimed she could get Erica back home before Christmas, but Sean did not believe her. So, Colby said if she did get Erica home, then Sean would have to take her out to New York City for New Year's Eve and help her expose Josh and Babe. Sean said it was a deal and they shook on it.
Zach was at Fusion and started to question Zarf. Zach held up a sketch Zarf drew for an album cover. It was a woman lying down with a flower and a ribbon. Zach also showed him lyrics that correlated with the picture. The lyrics spoke of a woman that he had to kill to save himself. Zach asked who this woman was and if he killed her. Zarf said Zach would not believe him if he tried to tell the truth. Also, Zarf believed that Zach was accusing him because he did not grieve and because he was an artist that was different from everyone else. Zach stated he only cared about the two women that died. Then, Zarf pulled a white ribbon out of his pocket and asked if Zach saw that as more evidence. Zach looked nervous and asked how Zarf knew about her. Zarf thought it was interesting that Zach had a "her" too and asked what Zach's secret was. Zach believed Zarf put the note by his door and grabbed Zarf. He yelled as he asked how Zarf knew about her. Then, Bianca walked in with a security guard and told Zach to stop. Zach finally calmed down and let go of Zarf. Zarf then explained that Zach thought he was the killer because of a sketch and lyrics. Bianca did not believe this was enough proof and Zarf left. Zach then told Bianca that the killings were his fault and that he worried Kendall might be next. Bianca assured him it was not his fault, but Zach persisted. Zach believed the murders were a message to him. Zach then left and Bianca stayed to decorate for the holidays. Bianca found an ornament with a picture that had Simone and Erin in it. Bianca looked sad, but continued to decorate. Then, she felt fake snow on her. Bianca was startled and turned around to see Zarf. Zarf asked if Bianca was scared of him.
Zach walked outside. He imagined Kendall motionless on top of rocks. She had a gardenia in her hair and a white ribbon around her neck!
Adam surprised Krystal with very expensive early Christmas gifts. Babe came in and he was full of goodness and light. Babe told Krystal that in spite of everything, she felt hopeful. Babe and Krystal talked about their favorite things as they decorated the tree. J.R. and Adam came in to help decorate and then Adam and Krystal left to leave the youngin's alone. Babe showed J.R. the remote control car she got for Little A and lots of other toys when Adam and Krystal came in and said that the baby was on his was down to see the tree. They scurried to hide all the toys and just as they finished he came in the room. He showed them his Christmas list that Winifred helped him write and on the list was a baby brother. Winifred, dressed in a (nearly) stripper Santa outfit came in and said that all their rowdy friends were coming over tonight. By "friends," she meant the truckers and cowboys from the bar where they got married.
At Fusion, Zarf explained to Bianca that they were one. He told her that she had to face that she and Maggie were over. He also read her aura and said that big change was about to happen. They talked about their Christmas' as children and Bianca said she knows about Christmas miracles. She asked what his deep, dark secret and he said he would tell her at the right time. She said she already knew his secret and that it was he was gay. Bianca then came in and she introduced Zarf to her and the nanny. Zarf picked Bianca up and asked what she wanted for Christmas
Ryan and Annie continued to kiss passionately when Emma came in and said that Santa couldn't leave gifts because they didn't have a tree. Ryan told her to go get dressed because they would go get a tree. Annie said he didn't have to do that, but he said he wanted to. At the tree lot, Stuart expressed his sympathy to Ryan about Erin. When they returned home, there were decorations everywhere and Emma was very excited.
Dixie went to see Tad and tried to spread some Christmas cheer. He would have nothing to do with it. Dixie showed him all the ornaments that J.R. and Jamie made as kids and he told her she could have them. She then told him that although he thought he had no more children, she was sure that Krystal was carrying his child. Tad told her it wasn't true, but she was not going to back down. Tad told her that he wouldn't stop looking for Kate and Dixie said that she thought he really had given up hope. He said he had not and she did manage to make him smile.
Jamie, dressed as a vaudevillian elf, helped Julia entertain the kids at the hospital. The kids told him he was too tall to be an elf, but he explained how he helped Santa one time and was made and elf. Julia looked on with stars and love in her eyes as she gazed at Jamie and gave him a big kiss when he finished and the children cheered. After all the kids were gone, Jamie told her about wishing on the Christmas star and Julia asked him about his wish. He wished Kate could come home.
At the end was a montage of all the people happy and smiling with their kids or others as "Oh, Holy Night" played.
Ryan is the first person to arrive at the joint funeral for Simone and Erin. Everyone else follows behind, carrying roses. Kendall, Tad, Jonathan and Ryan talk about how wonderful Simone and Erin were during the funeral. Tad and Aidan grill Derek about details of the murder cases, but Derek tells them to stay out of his investigation. Tad and Aidan figure that means Derek has nothing and will have to work on the case without him.
Dixie asks Tad if he wants to come with her and see JR. Tad declines the offer and decides to stay in the park after the funeral, but is interrupted by Zach. Zach tells Tad he needs him to investigate himself, but Tad wants to know why. Zach tells him that the murders are revealing clues connected to his past. Zach gives Tad all the information to his past and asks him to dig as deep as he can until his questions are answered. Zach says the white ribbon and gardenias are somehow related to him.
Dixie goes up on the roof to offer to check on Babe. Dixie tells Babe that she has been incredibly strong throughout the entire ordeal. Babe thanks Dixie for her kind words, noting that it is important to keep her family together. Dixie says that Krystal is also strong, which is way she can understand why Krystal won't tell Tad he is the father of her baby.
Erica, Bianca and Kendall head to the reception at Fusion. They look at old pictures of the Fusion girls wearing Santa Claus hats for a holiday photo shoot. Spike and Miranda stop by to visit before heading to the Miranda Center. Miranda rushes over to give Babe a hug, which makes Bianca slightly uncomfortable. Jonathan is unable to stand being at the party and rushes out with Amanda. Erica tries to offer Ryan some advice as he and Jonathan mourn over Erin. Ryan thanks Erin for her kind words as Kendall watches Emma rush over to hug him. Olivia tells Jackson and Erica to make amends with each other before it's too late. Josh gives Emma a juice box to sip on while Annie and Ryan are distracted. Ryan gives a speech encouraging the crowd to remember Simone and Erin for the rest of their lives. Josh tells Kendall that he got a DNA sample from Emma and asks her if she still wants him to run the paternity test.
Jonathan goes to the boathouse and remembers when Erin first took him ice skating. Amanda says it is fine for Jonathan to stay at the boathouse if he doesn't want to be at Fusion. Jonathan thanks Amanda for her constant support during his time of need, but thinks he is taking advantage of her. Amanda says it is fair for him to try to push her away when he needs her most. She tells Jonathan that she is treating him no different than any of her other friends, but understands where their relationship stands. When Amanda begins to walk away, Jonathan asks her to stay with him.
At the Chandler mansion, Stuart is busy decorating JR's room for Christmas. JR tells Stuart that he still loves Babe, but isn't sure if he can forgive her. Stuart said that forgiving is more of an emotion that choice, as the party continues with Krystal, Adam and their rowdy friends downstairs. Colby joins the party, but is less than thrilled at the thought of chewing on Beef Jerky and singing cowboy songs. Jamie checks on JR after the funeral. Jamie tells JR that if he going to hurt Babe again, he should end their marriage.
Erica goes to work and finds a present from "J" on her desk.
At Fusion, Zach approaches Kendall from behind and she tells him that she can't leave yet. She feels that if she turns out the lights, that signifies that this whole day has been true and that Simone and Erin are really gone. Zach tells her that they can stay in the offices as long as she needs to.
Across the room, Bianca makes it her priority to do some after party cleaning, and Jack tells her that she needn't worry about such things. Bianca tells him that she feels she has to, and continues on. He tells her that she needs to remember that he is here for her no matter what and she asks if that includes no matter what happens between he and Erica. Jack tells her that she shouldn't be worried about the status of his marriage. Instead, he asks her to focus on giving Miranda the best Christmas ever, because they both deserve it. He then goes over to Kendall, kisses her cheek and tells her that if she needs anything at all, she should be sure to call him. She nods her consent, and he starts to go. He sees Zach in the doorway and, without words, he conveys that he is leaving the care of his family in Zach's hands. Zach accepts the responsibility, and Jack boards the elevator and leaves the building. Once gone, Bianca approaches Zach and tells him that she can read his face regardless of how many things are going through his mind at one time. She tells him that she is aware he wants to do everything possible to protect them, and she wants him to stop focusing on Zarf. Although she knows the musician is on the weird side, she also has gotten to know him well enough that she is certain he is not violent. Zach tells her that although Zarf is being considered, he is nowhere near the top of his very long list. Kendall turns around at that moment and announces that she is ready to go. Zach is all for it but before they leave, Kendall stops and tells her little sister that she has to go with them. Bianca assures her that she will be fine, especially since she has her guard with her. Tearily, Kendall asks her to promise that nothing bad will ever happen again. Unable to make such a promise, Bianca simply wraps her sister in a loving embrace.
Erica is staring at the pin she received at her New Beginnings office when Jeff shows up and tells her that he wanted to check in on her after the funeral. She asks if the gift is his doing, and although he wants to take credit, he is driven by truth and says that someone else must have gotten a jump on Christmas.
Outside in the hall, Sean and Colby are listening at the door. Sean is upset that initially, it doesn't seem that things are going his way. He starts to leave but Colby stops him. She tells him that because she is a girl, she has the upper hand and knows what she is doing. She tells him that he needs to go into Erica's office, and before he can protest she shoves him in, startling Erica and Jeff in the process. Sean has to quickly come up with some reason for his entrance, so he clumsily makes his way over to the desk and spots the pin. She asks if Jack is the person that sent her the gift, and Sean answers with a question: does she know of any other true loves? Before she can answer, a colleague interrupts to get some decisions from Erica. After that wraps up, Sean picks up where he left off, hinting at more mystery gifts to come and asking her to come home. Erica doesn't think that Sean is making much sense, but Jeff is starting to figure things out. Erica tells Sean that she will get back to him with her answer, so the young man accepts that and leaves the office. As he does, Colby grabs him, quickly tells him that he did great, and then shoves him out of the way as the next gift two turtle doves make their way in.
Once they are alone again, Erica tells Jeff that Jack was at the funeral and was surprisingly pleasant. This plus the gifts is confusing her since they had already talked about divorce and separate lawyers. She asks if Jeff can explain the mind of a man in love, but Jeff declines as that may be viewed as him rooting for the other side. He admits that he would much rather root for himself, and whatever chance he might have with her. She then decides that she is done discussing her current husband with one of her ex-husbands, so Jeff switches the topic to her plans for Christmas. He invites her to go to the symphony with him, but she tells him that she isn't sure what her plans are yet. He notes that this non-committed version of herself is new and...odd. She asks if he is okay with waiting for a decision and he tells her that he all about doing whatever she decides. He gives her a kiss on the cheek and quickly exits. Upon finding herself alone again, she resumes staring at the brooch that was sent, trying to figure out what is actually going on.
Completely invested in the holiday spirit, Krystal tries to convince her reluctant husband that if he does a good deed today, he will certainly like his Christmas gift tomorrow. Adam grumpily tells her that she must have him confused with Stuart. A short time later, Krystal is dressed as Mrs. Claus and is sitting with the children in a playroom at the Miranda Center. She asks them who they want to see, and of course they tell her Santa Claus. She tries to coax Adam out of the changing room but he refuses and calls her to the doorway. Initially oblivious, she reminds him that he won't get his present if he doesn't play along. He yanks her into the room, and when she sees his costume, she realizes that something has gone terribly wrong. Adam tries to leave, but Krystal will have none of it. She drags him into the room with the kids, and they are a bit upset because Adam is not wearing a Santa suit, but rather a frumpy pair of pajamas and a sleeping cap. Krystal tells them that her friend is Mr. Scrooge and they need to help her get him in the Christmas spirit.
On the rooftop of Fusion, Dixie continues to try to press Babe until she breaks on the truth about who fathered Krystal's baby wording it as though she already knows the truth. Babe tells her that it has been a long time since her mother found someone willing to love her in the same way that they are loved, and asks why Dixie would want to threaten that happiness just to investigate a lie. Babe reminds her that even though her theory is a lie, she needs to stop talking about it because Adam would believe it without having any proof. If that happened, he would leave Krystal and break her heart. Dixie tries to justify it by saying that she broke Tad's heart when she had an affair with David, and when she lied about Kate, and then notes that sometimes it's so hard to know what the right thing is to do. She then says that she can understand what a difficult time Krystal must be having, and without thinking, Babe agrees. Dixie thinks that she has made some headway but Babe quickly covers, saying that the hard time she was referring to was dealing with the lie. Babe says that she understands what it's like to lose a child, even though her hell was only for a few months. She then asks that Dixie keep the pain of losing Kate between her and Tad, and let Krystal and Adam enjoy the happiness that they have found.
A short time later, Bianca finds Dixie on the Fusion rooftop alone. After assuring the bodyguard that Dixie is a safe person, he closes the door so they can talk in private. Dixie immediately apologizes for Bianca's loss, and notes that the tragedy probably makes her want to run home and hug her daughter. As Bianca agrees, Dixie lets on that she had heard about the situation where Babe kept Miranda as her own, and asks how she found a way to forgive Babe for what she did. Dixie then apologizes if she brought up any bad memories, saying that she was simply trying to get an angle on how to handle forgiveness from someone that was in a similar position. Bianca tells her that she is okay to talk about what happened, but that she might not be the best person to seek advice from since she never forgave Babe. Dixie asks how she could stand next to Babe at the funeral if she never forgave her and Bianca tells her simply that the funeral was not about her issues with Babe. Before she can ask more questions, Bianca stops her and says that although it's not Dixie's fault, she is tired of people assuming how she should act toward Babe. She then explains that on any given day, she can run the gamut of feelings for Babe. She says that for her, the bottom line is that there is no excuse or rationalization for keeping a parent from their child it's unthinkable and it's unforgivable. Bianca then notes that everything that she shared was for her experience alone, and that she never meant to confuse things for Dixie. Dixie tells the young woman that she did nothing wrong, and thanks her for being honest.
Back at the Miranda Center, Adam successfully continues his Scrooge act, and Krystal asks the kids for ideas on what could help Scrooge snap out of his bad mood. They settle on tickling, and Babe steps in and calls to her mother while the kids are attacking Adam. She tells them all that she has a message from the North Pole and steps out into the hallway. Krystal insists that Babe come into the room to see how much fun her son is having, but Babe tells her that she has more important news Dixie is set to blow her secret wide open. Babe fills her mother in on the rooftop conversation, and Krystal admits that Dixie has been putting everything together since she found out about Krystal's happy news. Babe asks what she thinks Dixie will do, and Krystal tells her that Dixie is willing to do whatever she can for the man that she loves. Babe asks Krystal what she wants and Krystal tells her that she wants to give a baby to the man she loves. She then admits that the reason she didn't share all of this with Babe is because she knew her daughter was busy handling her own problems. Babe demands that she never do such a thing again because no matter what, they promised to be there for each other to the end. They go back into the room, and Mrs. Claus asks Mr. Scrooge if he has anything else to share with the children. Adam starts to tell them about a miracle baby that came to life and saved them all, and when he looks at Krystal, she knows that he is referring to baby Charlotte. When she glances over at Babe and their eyes lock, they both know that he is talking about a child that might not be his.
While working alone at home, Tad is audibly visited by a scenario in while Dixie is speaking to their daughter. He tries to shake himself out of it, forcing himself to enter information about Zach into his computer, hoping to find a connection between Slater's past and the murders of late. His efforts are to no avail, however, as more scenarios between his ex and Kate play out intermingled with his own voice, disguised, and speaking to Greg Madden during his final days. The torture is cut short when there is a knock at the door. Tad goes to open it and finds Livia on the other side. After she comes in, she tells Tad that they both know who really killed Greg Madden, and that it doesn't need to be said out loud. He responds by saying that the incidents surrounding Greg's death are all a part of a closed book, and that the important thing now is the loss of two women who met with death far too soon. In addition, Tad notes that the person that he used to be is probably gone as well. Livia tells him that she will not give up on him but Tad replies that he is alone and his family is in shreds because of what he decided to do. He made a choice and took a chance, but because of all of the pain he caused, there is nothing left of the Tad she once knew. Livia hugs him and although he hangs on for a moment, he disentangles himself shortly thereafter and says that she doesn't get to comfort him or make him feel better, and she certainly doesn't get to forgive him. She tells him that there is only one entity that is in the position of judgment and forgiveness and it's not her. He tells her that he and God turned their backs on each other when he was pushed to the point that murder was the only answer. Livia gives him a lecture about God's forgiveness but Tad rejects her words and reiterates that there is nothing in him worth saving. Livia leaves soon after that, and Tad takes a seat in his now darkened house. The scenarios that were running through his head come back with a vengeance both Dixie's chat with Kate and Tad's lecture to Madden.
Zach and Kendall return home and when he turns on the lights, she sees that he completely covered the condo with decorations. He tries to play coy by telling her that elves must be responsible but, of course, she knows better, and rewards him with a kiss. She inspects everything, and is most delighted by the train and tracks set up to run around the base of the tree. Zach insists that no Christmas is complete without it, and then asks if she wants to see if it all works. She agrees, and when they sit down by the start, she finds a conductor's hat that she thinks is far too large for Spike's head. Zach starts the train, and then tells her that the hat she has is for him. He fishes a smaller, matching version out for her son, and it only takes one look for Kendall to decide that she needs to have her way with her husband. Some time later, basking in the afterglow, the couple remarks giddily that they were unaware that trains were such a turn on.
Later, Colby and Sean hang out at the Montgomery residence and Colby assures her partner in crime that after the slew of presents that she has planned, she is certain that Erica will run back into Jack's arms. Sean is still skeptical but has little time to keep questioning her tactics, as Jack soon returns home. He enters the living room and finds the duo giggling. He asks if he should be worried, but they feign complete innocence. He leaves them alone again, and while they talk about how Colby's creative side completely overshadows the part of her that she showed as a student, Jack roughly stashes some papers in his briefcase in the foyer, knocking over his wedding photo with Erica in the process.
It was Christmas Eve and Dixie went to Wildwind looking for Tad. Julia and Jamie said they did not know where he was. Jamie also expressed his concern for his father. Dixie assured Jamie that she had some news that would make Tad feel better. Then, Dixie left and called Tad on her cell phone. Tad picked up and Dixie asked him to meet her at his home. Tad was reluctant, but finally agreed. Meanwhile, everyone in Wildwind was getting ready for Christmas. Amanda, Aidan and Di were decorating. Julia was excited because her only friends from the witness protection program were going to spend Christmas with her. Then, everyone exchanged secret Santa gifts. Jonathan looked sad as all this went on. Then, Jamie gave Julia her gift. It was new speakers and construction plans for a media room. Then, Julia and Jamie went outside to hang a wreath and found Tad walking around. They wanted to give him a ride home, but he refused. Julia asked Tad if he made a wish on the Christmas star. Tad said no because miracles can break your heart.
Tad continued to walk outside. Tad recalled his past as he walked around. He remembered when Brooke told him Dixie died in a car accident. He also remembered David saying that Tad was a walking grenade. He then recalled Dixie saying that she gave Kate up for adoption because she did not have enough faith in Tad. Finally he remembered when Dr. Madden was found dead in the park. Tad proceeded on his walk and then fell to the ground.
Dixie went to Tad's house, but he was not there yet. Then, she heard a knock at the door and it was Father Clarence. Dixie assumed he wanted a donation for the church, but he said he was there to see Dixie. Dixie was confused and assumed Father Clarence knew Tad and that Tad told him about her. Father Clarence said Tad wished on the Christmas star last for Dixie's return. Dixie did not think she made everyone happy by returning. Father Clarence then asked if Dixie really wanted to give Tad the gift she came by to give him, since one child could not substitute for another. Dixie was shocked. Father Clarence then asked if it was worth making some people unhappy in order to make another happy. Dixie wanted to know the answer, but the priest said Dixie would make the right decision because she was no longer alone in life.
Adam was looking at Krystal's sonogram and saying that the baby looked just like him. JR chimed in that the baby had Chandler eyes. Then, Adam wanted Little Adam to open some gifts early, but JR wanted to wait for Dixie. Babe and Krystal inquired where Dixie was and Adam said she left early to find Tad. Krystal looked worried and said she had to go finish last minute wrapping. Babe did not believe Krystal and found her outside. Babe apologized for slipping up with Dixie, but Krystal insisted it was not her fault. Babe asked what Krystal was going to do. Krystal was undecided and said she has been struggling with her dilemma. Krystal wished she could help Tad by giving him another daughter, but did not want to hurt Adam. Krystal compared her situation to Babe's with Miranda. Babe explained that Krystal was right about not telling JR the truth about her affair with Josh. Babe believed sometimes a lie was better than the truth. Babe pleaded with Krystal not to say anything until they found out what Dixie was up to. Meanwhile, Colby was telling JR she got him a great Christmas gift. JR wanted to know what it was, so Colby told him about the camera. Adam said he loved that Colby was looking out for JR, even though her plan was devious. Colby offered to remove the camera, but JR said to leave it. JR stated he was giving Babe a second chance, not a free pass to make him look like a fool. Then, Adam realized Babe and Krystal were outside and made them come inside. They all proceeded to watch Little Adam open gifts. JR and Babe exchanged smiles and held hands. Then, Adam saw Dixie come home. He went to greet her, as Krystal watched. Dixie was acting strange and stated she could not talk to Adam. Adam was confused. Then, Krystal walked up and told Dixie not to say a word because she would tell Adam!