Massimo starts out believing that Jackie still loves him. When Jackie asks Massimo not to hurt Deacon, Massimo realizes that he should just let her go. Massimo orders Nick and Ridge to kick Jackie out of the house.
Jackie returns to Deacon's and they profess their love for one another. Everyone else is sure Deacon is just using Jackie.
At home, Massimo told Jackie that he became stronger every day in the hospital. He did not want Deacon to know of his recovery because he was afraid that Deacon would thwart his recovery efforts. Massimo told Jackie that he does not blame Jackie for her affair; he blames Deacon! Jackie asked Massimo to try to forgive Deacon rather than get revenge on him. Massimo insisted that Deacon's fate is sealed. Massimo felt that Jackie was passionate in her defense of Deacon. Jackie begged Massimo to not hurt Deacon. Massimo would not understand Jackie request to forgive Deacon, no matter what she said. Massimo worked himself into a frenzy and screamed at Jackie to leave. Nick and Ridge calmed Massimo down after Jackie left. Ridge told Massimo that he is better off without Jackie in his life.
Meanwhile, at Deacon's Eric warned Deacon that he was not going to allow Deacon to do to Jackie what he had done to all of the other women in his past including Bridget. Eric observed that all of the women that Deacon had in the past were all off limits to him, like Jackie had been. Deacon and Eric agreed about one thing they both care about Jackie. Deacon explained that Jackie should not return to Massimo because Jackie is a free spirit and Massimo is a control freak.
When Massimo threw Jackie out of the house, she went right back to Deacon's house. She told Deacon that she does not want to lose him because she loves him. Deacon and Jackie pledged their love for one another forever.
Brooke comes home to find Ridge still in bed at noon. He tells her he has time to sleep in now that he's taken a leave of absence. The two discuss Eric's bad decision to let Thorne use the Forrester name on his designs.
Nick came to see Jackie at Deacon's house. He continued to warn his mother about Deacon, but Jackie defended Deacon, saying that Deacon has proved himself to her. Jackie is sure that, given time, Nick will trust Deacon too. Nick noticed that Jackie is not wearing her wedding ring. She doesn't think it's right to have it on and gives it to Nick. Nick tells her that he will hold on to it for her. He is sure that Massimo and Jackie will get back together. However, Nick does tell her that Massimo has started divorce proceedings and has given Jackie M to Jackie. Nicks hugs his mother before he leaves.
Deacon stops by Spectra to see Sally. Sally asks him to discreetly mention to Jackie how wonderful Spectra designs are.
Nick calls and old girlfriend who is in town and asks her to meet him.
Caitlin and Thomas meet Eric in his office. Caitlin's worried that Ridge's absence will mean the demise of her new line. Eric informs her that with Ridge gone he will no longer have time to train her. Instead of firing her Eric promotes Caitlin to the position of a junior member of Forrester's design team. He also hires Thomas to undertake some of Thorne's former duties. When the two are alone, Caitlin shows renewed interest in Thomas.
Thorne sees a sample of the new dress labels Spectra will now use. He tells Sally he wants to change the size of his name so that it is no longer the same size as the words Spectra Couture. He also tells them to remove the Forrester logo. Thorne says they are taking advantage of his father's kindness. Sally tells him to relax. Thorne leaves for a meeting and tells them all to get back to work. Sally and Clark sneak the sample label out the back door.
Jackie and Deacon go over a press release announcing Deacon's promotion to Vice President of Jackie M. Deacon worries about the effect his jump on the corporate ladder will have on Jackie's relationship with her family. Jackie assures Deacon that Nick will come around when he sees the man Deacon really is. She then tells Deacon that at one time even Massimo believe he was deserving of this position. The two come out of her office to find Clarke and Sally sitting in the store. Clarke goes to show Jackie the label while Deacon and Sally talk. Sally asks for better placement of her products in Jackie M. Deacon hesitance to comply is soothed when Sally assures him that he will make more profit from her line than any other designer, implying that some underhanded methods may be used to get them ahead. Deacon agrees and the two shake on it.
Nick looks over a copy of the Jackie M. press release saying he already knows the type of man Deacon is. Paige enters the office and the two sit and catch up. Nick fills her in on the whole Jackie/Massimo/Deacon love triangle and tells her that he wants her to talk to Deacon. Later, Nick and Paige show up at Jackie M. Nick points Deacon out to Paige and tells her to, "Go get him, baby."
Amber and Darla talk about Amber's relationship with Thomas. She says things are still good between them but admits they've been busy. With her busy work schedule and his schooling they haven't spent a lot of time together but she hopes the two will spend more time together during the holidays. Amber tells Darla that the Forrester's were wrong in thinking that Thomas only fell in love with her because he rebounding from his crush on Caitlin.
Brooke is hanging Christmas decorations when Bridget comes home from Copenhagen unannounced. She informs her mother that Oscar stayed overseas for the holidays and apologizes for not keeping in touch. Brooke fills her daughter in on the recent developments in her life and the two marvel over how much Brooke has matured. Bridget, looking very upset, suddenly wants to leave saying she doesn't want to be the one to spoil Brooke's perfect family Christmas. Brooke prevents Bridget from leaving and demands to know what's going on in her daughter's life.
Paige is shopping at Jackie M. The store is closing up so Jackie heads home to the beach house leaving Deacon alone in the store to close up. Deacon helps Paige select merchandise from the racks and the two playfully flirt and exchange playful banter as he escorts her to the fitting room. As he looks over paperwork in his office Paige enters requesting assistance with her zipper. Deacon gets up to help her and she tells him that he can take his time.
Stephanie stops by the beach house to pay Jackie a visit. Jackie, clearly expecting it to be Deacon, whips open the door wearing a very revealing little number (from her own collection, of course). Stephanie says she is there to give Jackie a warning and proceeds to tell her that, not if, but when her relationship with Deacon crumbles she better not go running back to Massimo.
Massimo is at home doing his rehabilitation with a personal trainer. Nick enters and cheers his father on. They talk about the controversial new treatment Massimo is undergoing which hasn't been approved in the U.S. as yet. Nick tells Massimo that by the end of the night Jackie will know exactly what kind of man Deacon Sharpe really is.