Rosanna, alone at Fairwinds, hears a baby saying, "mama," just before Casey, Paul and Will arrive to get ready for the party. Paul sees that Rosanna is upset, and takes her out for a drink at metro, while the boys prepare for the party. Rosanna tells Paul that she is still feeling Cabot's presence, and that perhaps they should reconsider staying at Fairwinds. Rosanna steps outside to call the caterers and senses someone behind her in the dark. A few minutes later she receives a call from someone claiming to work for the caterer, asking her to return home. She leaves Paul at metro and starts driving toward Fairwinds, but James Stenbeck appears in the back seat of her car and demands that she continue to drive.
At Fairwinds, Alison arrives just before the high school kids come in. A long-haired, smart-mouthed jock named Tyson, is rude to Will, so Alison gives Will a big kiss and pretends to be his "older" girlfriend.
Emily comes to the police station and tells a stunned Hal that she is not ready to come home yet. Alison comes to the station to pick Emily up, and they have a very pointed conversation in front of Hal about how supportive Paul has been, in contrast to Hal. Alison and Emily go to metro, where they join Paul and Rosanna, before Rosanna gets the call from the "caterer." Alison leaves to check out Will's party, and Paul and Emily are left at metro, where Paul reassures Emily that she and Hal will find their way back together, just as he and Rosanna did.
In Julia's bedroom, Lily finds a letter with Keith Morrisey's return address in Chicago. Just then she hears Julia and Holden entering the bedroom, so Lily hides under the bed. As she hears the kissing and endearments above her, she sends Carly a text message on her mobile phone, "Help - I'm trapped." Carly receives the message and starts out the door, but finds Emma there on her way home from the airport. Emma insists that Carly stay so that she can scold her for playing a trick on Julia and putting Emma in the middle. Carly immediately apologizes and leaves for the farm as quickly as she can. As soon as Carly leaves the house, she calls Holden and tells him that she needs to talk to him about J. J. Holden and Julia are angry at being interrupted, but they dress and come downstairs to find Carly babbling about everyone trying to get along for J. J.'s sake. Carly distracts Holden and Julia long enough for Lily to sneak down the stairs and out the front door. Carly and Lily inspect the return address and the note from Keith, and plan to go to Chicago to find him. Emma returns to the farmhouse to hear Julia turning on the tears with Holden, as the two discuss their affair. Emma is furious with Holden, who responds, "I'm tired of looking after everybody but myself." Emma angrily retorts, "Well, this is my home - and I want Julia out of here by tomorrow," and stomps out of the room. Holden comforts Julia and tells her that nothing will change between them.
Unbeknownst to Craig and Dusty, they are being offered the same job at the same time. Craig and Sierra meet at Metro, and Sierra is upset when she learns that Craig plans to leave Oakdale and go to Hong Kong. She offers him the position left vacant when Jordan Sinclair resigned. "I didn't think you trusted me," he said. "I've always trusted your business sense," she says warily. Lucinda and Dusty, simultaneously, discuss the same job. Lucinda thinks he is exactly the right person to take Jordan's job. Dusty accepts.
Will's party at Fairwinds is not turning out quite the way Margo and Rosanna had hoped. The school bully has taken quite a fancy to Alison, and Will is determined to be her protector. Harsh words turn into a fist fight! Casey runs to get Paul and calls the cops. Paul breaks up the fight, and Will is mortified. He is very upset about how the party turned out, but Casey is thrilled! "Are you kidding?" he says. "Nobody can stand up to him! You're officially cool now!" Alison helps Will with his sore jaw, but when he asks her to join him for a shake at Al's or a late movie, she declines -- she has to go home to Aaron.
Rosanna is understandably upset as James Stenbeck, who was hiding in the back seat of her car, tells her that Cabot is alive. All she has to do, he says, to see him again is to get Barbara released from jail. Of course, he demands she tell no one of his return to Oakdale and he escapes from the car before she can get proof that Cabot is alive before she tries to help Barbara.
And Barbara does need that help! Hal has no sympathy for her, no matter how hard she tries to pull his strings. She attempts to manipulate him with comments about his "estrangement" from Emily, but Hal refuses to take the bait. Hal tells her that everything that is happening to her is her own fault because she mistreated everyone who loved her. "And you're being paid back in kind!" he snarls. Barbara looks shaken and alone when he slams the door behind him.
Julia comes to the police station and surprises Jack by asking him to keep JJ for a few days while she looks for a new place to live, since Emma asked her to leave the farm. Julia thanks Jack but when the discussion turns to her and Holden's growing relationship, Jack refuses to give her and Holden his blessing. Holden then enters and tells Julia that he's found a great apartment for her to see and Jack is shocked, thinking that they are making plans to move in together. Later, when Holden shows Julia the apartment, she loves it, signs the lease and the two decide to christen the place and make love. Meanwhile, a disguised Carly and Lily show up at Keith's condo in Chicago to try to get information on the mystery man from Julia's past. As Lily stands watch and Carly goes through Keith's mail, Keith's neighbor opens her door and catches Carly red-handed! Carly covers and learns from the neighbor, Mrs. Grace, that though he's never mentioned Julia, Mrs. Grace knows that Keith has an ex. Feeling satisfied with that information, Carly leaves, but asks Mrs. Grace to pass on a message that she'd heard Julia was in trouble in Oakdale. Later, when Carly and Lily return to Milltown, Jack tells Carly about JJ staying with them and Lily's thrilled to hear that Emma kicked Julia out. But, her happiness is short-lived when Jack tells her about Holden and Julia's possible apartment plans.
Dusty summons Craig to Metro to tell him he wants out of their business and he's taken a new job. Craig, however, has also been offered a new job and his new commitment leaves him no time for Metro. When the two decide to close down the place and sell it, Curtis overhears and reminds them of the people who work there. Dusty and Craig reconsider and decide to hire someone to run it until they can sell it. Meanwhile, Lucinda welcomes Sierra to her new position at World Wide with the surprise that Lucinda has hired the perfect second in command for her, Dusty. Sierra can't believe that Lucinda would hire someone behind her back and announces that she has already hired someone herself, Craig. Lucinda is appalled and Sierra is shocked but when neither will rescind their offer, all hell breaks loose as both men show up for their first day on the job. Eventually, a compromise is reached, leaving Craig in charge of Street Jeans and Dusty supervising over new businesses and both Craig and Dusty go to work at World Wide.
When Aaron and Alison bump into Rafi, they learn that Rafi's visa is expiring and, without a job or a sponsor, he'll have to go back to Montega. Rafi and Aaron realize that Dusty owes them both big time and Aaron heads down to Metro to try to work something out. At Metro, Aaron learns from Curtis that Dusty and Craig are hiring someone to run the place until it sells. When Aaron brings the news back to Alison and Rafi, they suggest that Aaron run it, and Aaron decides he will talk to Dusty on both his and Rafi's behalf.
Ben meets Jessica at Metro and they discuss the final divorce papers they have received. Ben surprises Jessica by suggesting that now that they're officially divorced, they should go on a date. A thrilled Jessica asks when and Ben says now. After their date, Ben tells a hopeful Jessica that though he can't make any promises, they should do it again soon.
Katie is looking for Mike and he rushes in, gives orders to his crew and prepares to leave. Katie tries to stop him, runs into a movable wall and it falls on her. Mike rescues her and cleans up the wound on her cheek. In the process he sat on some wet paint. Katie tells him to take his clothes off and she'll wash them. They flirt for a while and Katie leaves to find Mike some clothes to get into. Katie comes back with clean clothes and as Mike dresses, they talk and tease each other. Things become serious and they come close to a kiss.
Aaron is excited because Dusty made him the manager of Metro. He starts to make a list of everything he has to do and he wants to make a good impression on Dusty. Rafael walks in looking desperate for a job because his visa is running out. Aaron tells him to relax and offers him a job.
Sierra meets Jennifer at the door and wants to introduce her to her new boss, Craig. Jennifer becomes incensed and threatens to quit if she has to report to Craig. Craig tells her she should forgive and forget. Craig doesn't take it seriously that Jen will quit and wants her to pitch her campaign for Street Jeans. After Jennifer presents her ideas, Craig is impressed but tells her that he has some ideas of his own that will enhance hers. Jennifer doesn't want to listen until Sierra insists that she try to cooperate with Craig. After Craig pitches his ideas, Jennifer becomes angry. She tells him to stuff it and walks out! Over at Lucinda's, Dusty walks in on her massage. Lucinda teases him and Dusty seems to be enjoying himself. They put their heads together to try to get Craig out of Worldwide.
Holden shows up at Julia's new apartment with two chairs. After they kiss for a bit, Holden leaves to get some coffee. Luke shows up at Julia's door to tell her to leave his father alone. Julia says that Holden is there because he wants to be. Luke says she has no idea what she is doing to his family but Julia doesn't want to listen to him. Luke continues to tell her off. They are interrupted when Keith calls and tells Julia he found her. Julia tells Keith to leave her alone and hangs up. She then tells Luke to wait for Holden but Luke can't stand to be with her so he leaves. Holden returns and Julia tells him what happened with Luke. Holden promises to fix it. The phone rings and its Keith who wants to see Julia today! Julia pretends it is the hospital and hangs up. She tells Holden to go find Luke. Keith calls again and tells Julia she can't avoid him!
Carly overhears Lily's conversation with the school principal. Luke has cut school again. As Lily is trying to call Holden, a man from Julia past walks in. Keith sits at the next table and calls the hospital looking for Julia and gets her phone number. Keith calls Julia and tells her that he came to see her. She tells him to leave her alone. Holden walks in and Keith asks him for directions to the farm but he lost the address. Lily interrupts them to tell Holden about Luke. Holden and Lily argue. Holden leaves with two cups of coffee upsetting Lily even further. Luke comes in and Lily questions him about school. Luke said he went to see Julia. He tells Lily and Carly that he overheard her phone call with Keith and said that Julia was definitely hiding something! After Lily gets Luke to go back to school, she and Carly leave to spy on Julia!
Rosanna anxiously awaits proof from James that Cabot is alive. She hears a child's cry coming from the nursery, races in, and finds a TV set broadcasting an image of Cabot. Rosanna is emotionally overwhelmed when James appears and she agrees to do whatever it takes to get the charges against Barbara dropped. Meanwhile, Hal meets with Will to apologize for not believing in him when he said he wasn't the one haunting Rosanna. Hal reveals that the D.A.'s office has offered Barbara reduced jail time if she'll plead no contest to the charges but Will thinks his mother would rather die than admit she's guilty. Later, as Barbara tells Jessica there's no way she's admitting to something she didn't do, Will arrives at the police station. He surprises Barbara by making a heartfelt plea to accept the deal so as not to put their family through the agony of a trial. When Will leaves, Barbara is seriously tempted to sign the plea bargain until Rosanna arrives and tells Barbara not to sign.
While Craig continues to push Jennifer into agreeing to work with him at Street Jeans, Jennifer continues to resist and calls Paul to get his input. Paul is horrified to see Craig trying to worm his way into Jennifer's company and insists Jennifer walk. Jennifer entertains the possibility that maybe Craig's changed, but Paul thinks she's kidding herself and says he will have nothing to do with the company if Craig's anywhere near it. Paul storms out, as Mike enters and says he's supportive of Jennifer no matter what she decides.
Henry interrupts Mike and Katie's close moment and jokingly wonders if he should challenge Mike to a duel. Later, Henry gives Katie a wedding gown he bought off ebay, and she hurries to try it on as Margo arrives. Margo, who is suspicious of the wedding, has turned down Katie's request to act as matron of honor. Henry tries to talk her into changing her mind but Margo is resistant until Katie emerges in a comically awful dress. Margo feels sorry for her, agrees to stand by her side during the wedding. When Margo leaves, Henry reveals the first dress worked its magic and convinced Margo she needed to be involved in the wedding. He then shows Katie a second dress, a designer original that's everything Katie ever dreamed of. When the conversation turns to Mike, Katie admits she definitely feels she is making progress in her quest to win Mike's heart.