Carly told Simon to cool his jets until the building was finished. Simon suggested vilifying their exes, since Carly nixed purely gratuitous sex. Meanwhile, literally icy Katie reunited with a stressed Mike in an abandoned cabin. Meanwhile, a "smoking" Simon lazed on the bed and enticed Carly to kiss him. An electrical tower crashed into the building, then collapsed on them. This dampened even Simon's lust. In the cabin, Mike and Katie did what they always do. Back at the project, Simon freed Carly from the debris around her. He told Carly he hoped his gallantry earned him his way with her in the future. Once freed, Carly was horrified to see their damaged dream. Blissful, Katie dreamily told Mike, "I don't need a baby, I just need you," The two entrepreneurs drowned their sorrows with champagne; on the other hand, the "wannabe" parents go back to practicing for the event.
At the frigid farm, Em's newborn girl turned blue. "Why isn't she crying?" Emily hysterically screeched as Meg scootched the preemie away and tried to resuscitate her. Em hounded Nurse Meg as Paul attempted to soothe her. Meg wasn't successful, although she tried her hardest. "Is she sleeping?" Emily asked. Tearful Paul saw the truth in Meg's eyes and was forced to tell Emily that the baby couldn't be revived. "You're lying to me!" Emily shouted - just like when he told Jennifer that her baby died. She accused Paul and Meg oF a baby switch, then got more hysterical. Energized by adrenaline, Emily bolted out the door: calling for little Jen. Inside the faem, Meg held the tiny corpse and told it she wasn't alone. Paul scooped Em up and carried her back in, holding her as she demanded to see little Jennifer. Meg gently gave Em the tiny body. "She's so beautiful," Emily crooned. But the baby didn't wake up, so the truth did sink in. Emily sobbed again.
At Oakdale Memorial, a shocked Holden found Lily awake and praying in the chapel. Lucy, meanwhile, joked with his dad about overreacting to the baby's strep throat. Grateful Dusty offered to help her out. Lily blankly stared at Holden as he asked her how she'd gotten to the chapel. "Don't let Rose go," she pleaded. "She brought me." Holden tried not to look disbelieving as he lightly reminded her Rose had passed on. Then, Luke burst in. He tried to run out, but Lily told her son how much she loved him. They hugged each other tightly, like they never wanted to let go. Lucy thanked her new "slave" Dusty with a kiss before running off elsewhere to practice her Hippocratic Oath. Dusty repeatedly thanked Lucy for saving Johnny's life throughout the episode. Next, Bob and Holden talked about Lily's post-coma possibilities as she struggled to remember her life. A bit later, Dusty freaked as a nurse informed him that Johnny's "father" had taken the baby out. Safely back in bed, Lily was puzzled when Holden mentioned Ethan.. "What baby?" she asked. Looking for his own toddler, Dusty strolled into the sun room and found Craig Montgomery!!
Carly and Simon downed champagne amid the debris of Frasier Towers. He snuggled with her, but she balked, interpreting the disaster as a warning from a higher power not to get busy. Carly tried to be upbeat about the project, but he revealed he's broke. Simon was sure Carly could bounce back and showed her pictures for her resume. She wept that her career and marriage had gone up in smoke. They snuggled together under a blanket to get some sleep.
Paul comforted Emily, who cooed over the dead body of their daughter. Jack arrived, and was able to bring Emily and child to hospital. Jack comforted Meg and asked about Carly, but Meg didn't know anything. She felt guilty for not saving the baby. Then Jack got a call from Margo that Simon's building was damaged.
Jack made his way inside the building and was dismayed to surprise Simon and Carly together on the couch. Carly thanked him, and asked about the kids. She said she didn't get trapped on purpose. Jack tried to usher them out, but Simon said he would take Carly home. After Jack and the firefighters left, Simon needled her. She suggested they rise from the ashes "literally," and show the world they got it going on. Carly vowed to find more money for another project.
Holden explained to Lily that she was in a coma, and memory loss is normal, but she didn't even remember being pregnant! Lucinda arrived to comfort her, and Holden fetched little Ethan and they bonded. Later, Holden brought in Faith and Natalie, as well as Luke. Alone with Holden, Luke feared that Lily will remember that he's the reason she fell. Holden assured him she would understand. Surrounded by all her family, Lily was grateful to be back. Suddenly a vision of Rose appeared and admonished her to take a head count; somebody's missing.
In her room, Emily was inconsolable, but Paul tried. When Meg appeared, Emily shrieked: "You killed my baby!" Paul defended Meg, and Susan arrived to comfort Emily. Meg vowed to stick by Paul, then get married and have their own family.
Seeing Craig holding Johnny, Dusty hissed, "Give me my son or I'll kill you." Lucy revealed that Craig was the masked man who saved her and Johnny on the road. Dusty sniped at Lucy for defending her father and threatened to call the cops. "I'm the natural father," Craig pointed out, adding that he's a free man because his case was overturned on appeal. Lucy kept Dusty from pummeling Craig, but scolded her father, so Craig assumed they were back together. Dusty reminded Craig about the court order keeping him away from Johnny. Craig told Lucy he's here to put things right with her. He blamed Dusty and Paul for tricking him, but now he's motivated by hope, not revenge. Lucy told Dusty she didn't know Craig was back, but he asked her, now that she does, what will she do?
In the chapel, Paul lit a candle and asked God if he was being punished for taking Johnny away from Jennifer. If so, God should tell her Paul's sorry. Then Paul said God should have stopped tonight's tragedy. "I'm punished," he confessed. Craig rolled up to marvel at the sight of Paul on his knees.
At the hospital, Holden returns to visit Lily and we find that Lily is seeing visions of Rose who says she is upset with Lily for not taking care of someone. Rose then fades away and Lily tries to figure out who Rose wants her to take care of. In the hallway Luke runs into Jade and gives her the good news that Lily is awake and discusses his concerns about Lily not being the same. Holden comes across Luke and Jade and advices Jade not to visit with Lily since she is not herself. Jade continues to try to reach Will, but when he doesn't answer his phone she goes by Lily's room where she is waved in by Lily. Then we learn that Lily thinks she has promised Rose to take care of Jade. Lily still believes that Jade is Rose's daughter and Jade leaves the room to get a nurse. As she leaves she runs into Luke who is angry that Jade went into Lily's room. Luke makes Jade go back into Lily's room where Lily not only remembers that Jade is not Rose's daughter, but also remembers that she and Luke were angry at each other, but doesn't immediately remember why they were fighting. Later Lily flashes back to her fall and then says she remembers everything.
Gwen and Will are together in bed the morning after the storm and begin to discuss their relationship and future. Will and Gwen talk about their happiness and begin to make love and afterwards we see them out in living room talking about why they got together and their future. Jade returns in a cab to Will's house and lies about insisting to the doctors that they make sure their baby is okay and lets him know that she and the baby are fine. As she tells Will how happy she is to be back alone with him Gwen walks in and Will goes to Gwen's side and tells Jade that Gwen spent the night with him.
Dusty and Lucy discuss Craig's return and when questioned about her future with her father they argue over Lucy's indecisiveness in dealing with Craig. When Dusty sees Margo, who offers congratulations on Johnny's safety, he tells her about Craig's return to Oakdale and Craig's visit with Johnny. Margo and Dusty question how it is possible for Craig to be released from jail and after calling Tom they learn he was released on appeal. The court decided that it couldn't prove that Craig switched the babies so there was no motive for him to drive Rosanna off the road. The charges were then reduced to reckless driving and he was released on time served. We later see Dusty and Johnny leaving the hospital.
At the Lakeview, Lucinda and Lucy discuss Lily's waking from the coma and Lucy drops the bombshell that Craig has returned to Oakdale. Lucy talks with Lucinda about Dusty's anger and Lucinda takes Dusty's side and warns Lucy about Craig's inclination to do wrong and hurt people. After much discussion Lucy admits that she is scared of her father and what he might do, but still feels how much her father loves her and that she can't just forget him.
In the hospital, chapel Paul has discovered Craig and even though Craig seems sympathetic to Paul's loss, Paul refuses his condolences and blames Craig for the death of his sister, Jennifer. Craig tells Paul that he returned to Oakdale to undo the bad things he has done and then Paul rants to Craig that he cannot undo the loss of Rosanna. Meg overhears Paul's anger and pain and also hears Paul threaten to finish Craig off. Meg walks in and Craig tells Paul that he will call the police if Paul threatens him again. Craig taunts Paul with remarks about Meg's happiness and snide remarks about the women in Paul's life and then leaves the chapel. Alone in the chapel Meg and Paul discuss Craig and she tries to convince Paul not to be vengeful.
After leaving Paul and Meg, Craig finds Margo and she tells him about her discussion with Dusty and warns Craig not to pull another stunt involving Johnny or Dusty. Craig then tells Margo he is back to make things right and give her a chance to apologize to him for not sticking by him when he was fighting Jennifer for his son. Craig tells her that the only thing important to him now is family and it is the real reason he has returned to Oakdale.
Gwen stops Will from telling Jade about their night together, insisting that nothing can change between them as long as Jade is pregnant with his child. Will refuses to believe her and later takes action to get Jade to move out. Meanwhile, Maddie is making peace with Dallas when Jade arrives, misinterprets the situation, and warns Dallas not to believe whatever Maddie's saying about her. Jade's paranoia peaks Maddie's interest – as does Dallas relating how Jade said her pregnancy was a secret. Later, Maddie calls Gwen to say something weird is going on with Jade. Dusty drops the bomb of Craig's return to upset Barbara while Margo debates giving her brother a second chance. When Casey hears Craig is back he goes ballistic off the pain Craig's baby switch caused him and Gwen. But it turns out Casey's conflict isn't just with his uncle when Margo asks him to give Craig a chance. At the same time, Dusty tells Barbara he plans to have Johnny guarded 24/7 and isn't worried about Craig's return. Barbara goes to Craig to plead with him to stay away from her family. Later, Craig decides to leave the hospital against Lucy's wishes and Lucy is intercepted from getting near Dusty and Johnny by Chaz, Dusty's new bodyguard for Johnny. If Luke was worried Lily would remember she wanted him not to be gay, his fears are washed away when it all comes back to her and she begs his forgiveness for not accepting him the way he is. But despite the peace she's made with Luke, Lily's still troubled by Rose's request that she's still not finished doing what needs to be done. Later, against Holden's better judgment, Lily decides to find Rose's lost daughter and take care of her the way she should have done from the beginning.
At Java, Maddie tells Gwen she thinks Jade is faking her pregnancy in order to keep her hooks in Will. She looks up the phone numbers for the various health clinics in town and calls the first one on her list, going through information on her cell phone so that her number won't show up on the caller ID system at the clinic. When she says she's Jade Taylor and needs a copy of her medical files, the clinic asks for her patient ID number or Social Security number; unable to provide either one, Maddie hangs up.
At Will's place, Jade comes in with coffee from Java, and Will tells her he's rented an apartment for her and prepaid it for 6 months and that she can move in today. She's upset to hear this but calms down and tells him it's not that she doesn't appreciate it, it's just that she wishes she and the baby mattered half as much to him as Gwen apparently does. Will assures her that the baby does matter to him. Jade's cell phone rings, and it's the woman from the health clinic, telling her she's sorry they were disconnected. When Jade says she didn't call them, the woman tells her someone was trying to get her medical files. Jade hangs up and tells Will that she thinks it was Maddie, and that Maddie must be trying to prove something --- maybe that Jade is faking her pregnancy. Will assures her that he doesn't believe that's true. A cab arrives to take Jade to her new apartment, and Will leaves to go to Java, where he tells Maddie about the phone call Jade got from the clinic. Maddie tries to convince him to go to the clinic to try to get a peek at Jade's files, but Will says as much as he'd like to think she's faking it, he believes Jade is really pregnant. Maddie leaves, and Will sits down to talk to Gwen, who fills him in on how college is going, saying she likes her music theory class and has to write 2 or 3 original songs for it. Will asks if any of the songs will be about them, and she says, "Only all of them."
Henry goes to see Emily to give her a ride home from the hospital because Susan's all tied up with storm victims. Emily calls him a traitor for having called Meg to say she was planning to leave town with Daniel, but Henry insists he was being a good friend by doing that. He tells Emily if she needs to blame someone for what happened to her baby, to blame him. Meanwhile, Meg tells Paul that she's made arrangements with the hospital chaplain to have a memorial service for baby Jennifer and that she'd like to be there, too, to tell Jennifer goodbye; Paul thinks that would be fine. When Paul goes to see Emily, she begs him to let them be alone together to say their goodbyes to their baby, saying this is the one thing she'll be able to do for her daughter. Paul leaves to go tell Meg, who says she's not surprised and assures him it's okay. Meanwhile, Henry tells Emily that one day, she'll want to call the one person who's never asked her, "What's in it for me?" and she says, "Don't wait for your phone to ring!" He leaves, saying, "I will, Emily ---- for as long as it takes."
Paul returns and takes Emily to the hospital's chapel, where the chaplain offers his condolences and tells them their baby was a gift that was taken the moment it was given. He says there's no answer to "why," but they've had a glimpse of parenthood and should always mark their daughter's birthday. He tells them perhaps their baby's mission was to remind them how precious love is, then he has them light a candle for the baby and one for each of them, to represent their bond as a family. The chaplain leaves, and Emily asks Paul, "What happens when the candles go out?" Paul hugs her and says, "If we remember her, she'll always be a part of us."
A nurse tells Meg that a package has been delivered for her; Meg opens it, seeing a beautiful glass vase,and thinks it's from Paul, but the card reads, "Congratulations on your engagement. With warmest regards, Craig Montgomery."
At the Lakeview, the bodyguard, Chaz, whom Dusty has hired to protect Johnny from Craig, tries to stop Lucy from approaching Dusty and the baby. Dusty tells Chaz that it's okay to let Lucy approach, and when she sits down, Lucy tells Dusty that she's never liked being told what to do or who to see, by anyone. She tells Dusty she loves her father but that she can separate who he is to her from who she thinks he should be to Johnny. She says she doesn't want Johnny to grow up having to make excuses for his dad the way she's always had to make excuses for her, and she says she wants Johnny to be proud of Dusty. Then she introduces herself to the bodyguard and explains exactly who she is, and Dusty tells him, "She's okay." Mr. Yamamoto walks up, explaining that he had a business meeting in Chicago that allowed him to make a side trip to Oakdale since Dusty had to cancel his meeting in New York. He says he has a conference room set up for a meeting if Dusty can come, and Lucy tells Dusty she'll watch Johnny for him, accompanied by Chaz. Dusty and Mr. Yamamoto leave; as soon as Lucy sits down with Johnny, Craig walks in, and the bodyguard grabs him. Lucy demands to know what he's doing there when he should be in the hospital, and he tells her he checked himself out against medical advice. Lucy tells him she thought he said he'd changed, and Craig asks if she expects him to just sit by and watch another man raise his son; she says yes, if he really loves Johnny, that is what she expects him to do. He informs her that he's rented a suite upstairs at the Lakeview, and at that moment, Dusty walks up, takes Johnny from Lucy's arms, and demands to know what Craig is doing there. Craig tells Dusty he can keep him from holding Johnny but he can't make him invisible; glancing at the bodyguard, Dusty replies, "I wouldn't be too sure about that!" Craig leaves, and Dusty turns on Lucy, saying, "Is this becoming a habit? Setting up Johnny?" Lucy insists she knew nothing about her father's discharge from the hospital or plans to come stay at the Lakeview, but Dusty tells her to tell him what she and her dad have planned next, because he's not in the mood for any more surprises.