At the Forresters', Felicia informs Taylor, Thorne and Ridge that Ann came to apologize for not protecting Stephanie from her father's abuse. Before she can tell them too much about the visit, Stephanie walks in and tells them she wants to forget about Ann and concentrate on building a new company with Eric. Thorne tells everyone about Taylor's plan to get Forrester back for them by taking Nick on as a patient. Stephanie can't believe that Nick would ever seek advice from Taylor. Taylor explains that Nick knows what she is up to and has agreed to go along with it. As Taylor heads out the door to meet with Nick, Stephanie warns her not to trust "the son of a bitch." After she has left, Ridge and the family remain skeptical. Stephanie thinks it's dangerous for Taylor to be around Nick, saying she wouldn't put anything past him. She warns Thorne not to underestimate him, adding that Nick might try to come between him and Taylor. Thorne refuses to believe that Nick is a threat, and continues to support Taylor's plan. However, Stephanie and Ridge think Thorne is foolish to allow Nick anywhere near Taylor. Ridge says that Nick may take the opportunity to use Taylor so he can stick it to the Forresters one more time. Stephanie encourages Thorne to up the wedding date as an added precaution.
At Forrester, Jackie and Nick are disappointed with Clarke's latest designs and agree that he will have to come up with something better. Nick then begins to tell his mother about his therapy sessions with Taylor. He is frustrated because there are so many other things he had rather be doing with Taylor than discussing his childhood. Although he admits that he feels more comfortable talking with her about the subject than he would with anyone else. Fearing Taylor will uncover something she doesn't want Nick to remember, Jackie tells her son she wishes they could just go out to dinner and not do this therapy thing. She then tries to convince Nick to stop seeing Taylor as a therapist, telling him she fears Taylor will convince him to give the company back to the Forresters. Nick assures his mother that he will never do that and reminds her that she was the one who urged him to see Taylor in the first place. Jackie says that was because Taylor is the only woman he has shown any interest in since Brooke. Suddenly, Jackie gets a terrible headache and Nick rushes out to get her pain medication.
In the limo, Taylor's driver senses that she is upset and asks her if she is having family problems. She tells him her family is fine, but she is concerned about a friend who is having problems. She remembers her past conversations with Nick and is determined to find out what Nick is struggling with so she can make him face it and move on with his life. Once Taylor arrives at Forrester, Nick jokingly tells Jackie she should stay for the session so Taylor can delve into her deep dark secrets. Jackie is not amused by her son's suggestion and quickly leaves the room. Once they are alone, Nick begins talking about the miseries of growing up poor. Taylor questions why he isn't happy now, especially since he has power and wealth. She goes on to tell him that she doesn't think he ever processed what it did to him to lose Brooke. Nick turns the tables on her, asking her how she felt when Ridge left her for Brooke. Taylor says she isn't the one being analyzed even though she concedes that there are parallels in their situation. Still pushing to get more out of her, Nick asks her again if she is marrying Thorne because she feels guilty about Darla. Becoming uncomfortable, Taylor steps back into professional mode and tells Nick her personal life is off limits. She asks him about why he ended the last two sessions so abruptly and he tells her he had things to do. While Jackie unsuccessfully attempts to eavesdrops outside the door, Taylor asks Nick about Captain Kramer and the pearl earrings he gave to Jackie. Nick tells her how he used to always look forward to Captain Kramer's visits and remembers how he brought them presents when Jackie was unemployed. Nick says one day that changed and he never wanted Captain Kramer to come back again, but Nick doesn't remember why.
At Forrester Creations, Taylor continued the psycho therapy sessions with Nick. Nick had a difficult time remembering events from the past. He did recall a man named Captain Jerry Kramer who brought gifts to him. He recalled that he became angry with this man and asked him never to come back, but Nick could not recall why. Nick cut the session short and asked Taylor to leave. Jackie asked Nick how his therapy is going. Nick said he didn't feel any differently than he did before. Jackie became defensive when Nick asked her about their past.
After Taylor's session with Nick ended, Jackie spoke to Taylor privately. Jackie told Taylor that what Nick needs is Taylor to help him forget about Brooke and not by using therapy. Jackie tried to make it appear as though Taylor were looking for something in Nick's past that was not there.
At home, Ridge and Thorne decorated the Christmas tree. Ridge warned Thorne that Taylor should not be involved with Nick with therapy, because Nick cannot be trusted. Thorne asked Ridge to be his best man at he and Taylor's wedding. Back at Forrester Creations, Nick really tried to remember details about Captain Kramer. Nick did not like what he was beginning to remember.
At Taylor's, Taylor and Allie decorate the Christmas tree. When Allie finds Darla's Christmas stocking Taylor helps her to find a place to put it up. When they're out of Allie's earshot, Thorne tells Taylor how much better their Christmas is since they get to spend it with her. Thorne admits the holidays make him miss Darla even more. Taylor says for her, Christmas is about endings, because it's the end of the year and all the hopes for it, but she adds that it's also a time for new beginnings like their blossoming relationship and kisses him. Thorne tells Taylor he'd like to have Sally over soon and he thinks Taylor could help her cope with all of the losses she has had to suffer through. Taylor tells Thorne since women often live so much longer than men many of them have to face being alone, just like Sally. Thorne thinks Taylor won't have to worry about that since he has good genes, like his grandmother Ann. Taylor points out what a lonely, old woman Ann is. As they watch Allie place Darla's stocking, Taylor tells Thorne that no one will ever replace Darla in Allie's life. Thorne wonders about the connection that Stephanie feels with Ann. Taylor tells him no matter how much Stephanie may want to, there is no escaping the mother daughter bond.
a At the Forresters,' Stephanie and Eric prepare for Christmas and decorate the tree. Stephanie remembers happier times she shared with her mother. Eric feels that even though Ann's love wasn't what Stephanie needed when she was growing up, maybe it is what she needs now. Stephanie disagrees. Eric thinks even if she can't understand or forgive Ann, maybe she can learn to accept her again. Stephanie feels like a fool for ever accepting her mother. Eric tells her love makes a fool of everyone, including him, and lays a big one on her. Felicia walks in, shocked to see her parents being so amorous, she brazenly asks them if they are having sex again. Stephanie slyly admits that they are. Felicia is happy for them and excited about Dante coming home for Christmas. Stephanie pressures Felicia about wedding plans, but Felicia refuses to get into it until Dante gets home. After Stephanie rushes out to do some last minute shopping, Eric tells Felicia he wants to get Stephanie a special gift that will really show her how much he loves her. He decides the best thing he could do for her is to force her to reconcile with Ann. He then calls a reluctant Ann and convinces her to come for Christmas dinner. Once he is off the phone, Felicia warns him that Stephanie is not going to be happy and his little gift is going to ruin Christmas.
Meanwhile at Brooke's, Ridge reads Christmas stories to RJ and Hope. After Ridge finishes, Hope tells Brooke she really feels sorry for Allie this year because of what happened to her mother. When they are alone Ridge and Brooke talk about how strong their family is. Ridge kisses Brooke and tells her how much he appreciates her always being by his side. Ridge says she is all that he wants for Christmas and he can't wait until they make it official. Stephanie drops by and tells them she wants to make it a special Christmas for Allie. When Stephanie gets a moment alone with Brooke, she tells her she is happy to get a second chance to be friends. They hug and Stephanie thanks her for bringing the family back together. Stephanie tells Brooke that she has learned a lot about herself this year and admits she has had to face some issues she never thought she would. Stephanie is happy that Felicia is well and excited about her sons upcoming weddings. Relishing their sudden closeness, Brooke asks Stephanie if she will ever be able to forgive Ann. Stephanie tells Brooke she will never forgive Ann and doesn't want to ever see her again. Stephanie adds as far as she is concerned her mother is dead and buried and that's the way she wants to keep things.
As the Forrester family began to celebrate the Christmas holidays, members of the family arrived at the home of Stephanie and Eric. Felicia asked her father to take back his invitation to Stephanie's mother and sister, but he would not, stating that if Stephanie could not forgive her mother at this particular time of the year, then when?
On the plane ride to California, Pam spoke to her mother about how nice it was for Eric to have extended an invitation for them to attend their family Christmas gathering. Ann talked about possibly having the chance to have her daughter back in her life after all those years, but didn't count too heavily on that happening.
Eric spoke to his wife about how proud he was at the way she dealt with her mother. He then told her that he had a very special Christmas present for her. Stephanie was excited but wondered what it could be.
Phoebe and Shane spent some time together. He gave her a hand-made jewelry box and told her that he hoped one day to be able to fill it with jewels for her. He told her again that he wanted her to be proud of him. The phone rang and it was Ridge wondering why she had not yet left for the Christmas gathering. Phoebe and Shane kissed each other and wished each other a Merry Christmas.
Brooke is suddenly pulled inside the doorway by Ridge who is holding a piece of mistletoe in his hand. He tells her that he was explaining to the children what it was used for.
Phoebe arrived telling everyone that she was sorry to be late, but, her sister called. Ridge spoke to Phoebe quietly, telling her that he wants to keep her safe and that is why he wants her to be sure to stay away from Shane.
The plane arrived, finally bringing Ann and Pam to L.A. Ann told the stewardess to keep the plane handy because she didn't think that they would be staying long.
Stephanie made a speech to her family, telling them that she was very grateful for all their support during this past year. She considered this Christmas to be a very special one and said that the Forrester family always managed to be close while her previous family wasn't. She was happy to tell them that this was the family that she always wanted. She ended her speech by announcing that dinner would be served within a freckle or two.
Then came a knock on the door, which Stephanie answered. Outside stood Pam and Ann. Ann tells her daughter that Christmas time is a time for family, and Stephanie responds abruptly, telling them they are not welcome.
The family is shocked by Ann's arrival. Ann pleads with Stephanie to have a change of heart, but Stephanie asks her mother to leave. Ann tears up, and apologizes for causing Stephanie so much pain and prepares to leave, just as Taylor asks to speak with Stephanie. Stephanie admits that she wants to forgive her, but she just can't do it. Stephanie breaks down in Taylor's arms. Taylor asks Ann and Pamela to leave the party. Eric begins to play "What Child is This?" on the piano, which causes everyone to join in. Stephanie hears her family singing as she comes back. Stephanie sees Alexandria grab Ann's hand to join in the singing. Stephanie finally finds the strength to forgive her mother, as the two of them share a long overdue embrace.