Billie took a lie detector test to prove that Larry had set her up, and she passed with flying colors. Roman and Kate were pleased that Billie was telling the truth, while Abe learned that Larry had access to codes and information that would have made him look legitimate to Billie. She was exonerated, and Abe assured her that she would probably get her badge back. Bo and Hope were upset over it, and Hope thought that even if Billie was telling the truth about Larry, she still had residual feelings for Bo.
Lexie read the doctored paternity test results and was thrilled to see that Abe was the father of her baby. Brandon hassled Lexie, who was pleased to show him the test results, but he couldn't accept that Lexie was going back to Abe after all the times he had turned his back on her.
Meanwhile, Colin blackmailed Sami and promised he wouldn't tell anyone that she had changed the test results if she did things his way. Then, he blackmailed Nicole for five million dollars in exchange for keeping the sex tape he'd made away from Victor. Sami met up with Brandon and tried to get his mind off Lexie by inviting him to spend Christmas with her family.
Chloe and Craig kept vigil at Nancy's bedside as she slipped further into unconsciousness. Brady went to Chloe and taught her how to pray for a miracle, while Craig gasped as Nancy's heart monitor changed.
At Dot Com, Belle told Mimi that she and Shawn hadn't made love the night before because the sprinklers had gone off. They spotted Philip, who was an absolute wreck because he'd lost Chloe and didn't know what to do with his life anymore. He talked to Belle and Mimi, who were both very worried about him. As he left, Philip spotted something that sparked an idea in him, and he rushed off.
Meanwhile, Nicole met with a wedding planner, and Victor was amused when Nicole laid into her for arriving with cheap samples. Later, Philip called Victor and Kate together to tell them that he'd enlisted in the Marines.
At the DiMera mansion, Belle and Shawn took gifts to Cassie and Rex. Cassie greeted them with sarcastic comments about their romantic evening in the dorm. Belle voiced her suspicion about the fire alarm and Cassie's knowledge of them. Cassie was quietly determined that Shawn would be hers by the next Christmas.
At the Hortons', Lucas and Will joined Maggie and Mickey; Doug and Julie; Bo, Hope and Zack; and Sami and Brandon. Abby got her wish as Jennifer extended her hand to Jack as an invitation to place their ornaments on the tree together. Upon completing the family decorating tradition, Alice remarked to her deceased husband, "Well, Tom, we're all still here and so blessed."
At University Hospital, their prayers were answered as Craig, Chloe, and Brady watched Nancy regain consciousness. An elated Chloe uttered, "Merry Christmas, Mom." Presenting his wife with gift-wrapped proof that he was Chloe's father, Craig was the source of tears of joy to a stunned Nancy. At the Wesley house, an optimistic Chloe and Brady decorated together, and Brady presented a stocking for her baby sister and the angel -- once shared between his parents -- to Chloe. She, in turn, gave him a snow globe reminiscent of their time at the cabin in Colorado.
Nicole was torn between thoughts of Victor destroying Colin and her life being "perfect or ruined or over" because of Colin's blackmailing video. Victor and Kate were upset at Philip's decision to join the Marines, offering to use their connections to exempt him. Determined to honor his commitment, Philip left to join the Brady celebration at the pub, not telling anyone else about his plans. Kate planned to join Roman there as well.
Before leaving for the pub, John and Marlena were surprised by Tony -- bearing the gift of the painting of Marlena from the DiMera Island mansion. Despite John's protests, Marlena was mesmerized by it and felt relieved that accepting it would keep it away from Tony. As gifts were exchanged at the DiMera mansion, the twins delighted Tony with a photo of themselves. Declaring he was head of the house, Tony surprised Bart with a holiday bonus -- something he had never received before -- as a token for Bart's honesty and loyalty.
As toasts were being made around Salem, Tony privately raised his glass to the original painting of Marlena -- not the copy he'd given her -- with a toast: "To the future."
Bo, Hope, and Shawn celebrated Christmas Day big for Zack because it was his first Christmas as a Brady. Belle joined them, and Shawn gave her a gift: a night planned for New Year's Eve at the Salem Inn, where they planned to make love for the first time. Meanwhile, Abe and Lexie shared a romantic Christmas together and exchanged gifts involving the arrival of their first child.
Bo, Hope, Shawn, Belle, and Zack all headed over to the Brady Pub to be with the family, and Abe and Lexie showed up with a gift for Zack. Lexie waited outside, but Hope insisted Lexie go in and give the present to Zack herself. It was a huge moment of forgiveness as Hope allowed Lexie to see Zack then Lexie made the big announcement that she was pregnant.
Chloe and Brady woke up under the tree after making love the night before. They made love again then went to the hospital just as Nancy was being released -- still reeling from the news that Chloe was Craig's daughter. At the hospital, Mickey and Maggie were dressed as Santa and Mrs. Claus, while Roman, Colin, Grandpa Shawn, and Caroline helped prepare for the party.
Mickey had laryngitis and couldn't read the Christmas story, so Alice stopped Chloe on her way out with Brady and her parents and asked her to read it to all the sick children. Jack, Jennifer, and Abby arrived at the party after spending the morning together, and later, Colin told Jennifer that he was thinking about moving back to Ireland. After Chloe and Brady took Nancy home, they made love, while Nancy still had trouble dealing with the fact that she had given up Craig's baby.
Philip said goodbye to Victor and Kate and later told Belle, Shawn, and Mimi that he was leaving. He got a chance to see Billie and Lucas before he took off, as well. Brady and Chloe arrived after Belle called them, and Brady had a heart-to-heart with Victor, who was glad Chloe was out of Philip's life. He warned his grandson to be careful she didn't break his heart the way she'd broken Philip's. Victor promised Philip that he'd take care of Kate. Chloe wished Philip a fond farewell as he picked up his bag and walked out the door.
Colin dreamed about Jennifer in bed and of killing Bo.
John and Marlena spent a nice, quiet Christmas at home. Shane called and told John he was not Stefano's son. Daphne DiMera related John and Tony; they shared her as a mother. Daphne and Philamina Alamain were sisters; Daphne had given birth to John, a.k.a. Forrest, and given him to her married sister, Mrs. Alamain. Daphne had apparently cheated on Stefano with another man. John believed that was why Stefano had so much hatred for him. John and Marlena shared a romantic evening with great past Christmas flashbacks and ended the evening in bed.
Bo and Hope shared a quiet evening at home as well. They danced to their song, "Tonight I Celebrate My Love for You," from a music box. Hope thought she saw Larry in the window. Bo went to look and found no one. She told him maybe it had been the neighbor, never revealing she'd thought it had been Larry. They reminisced about their first Christmas as a married couple and the year Bo had given Hope the music box. Bo carried Hope upstairs, where their evening ended in bed.
Jack and Jennifer exchanged one last gift. Hers was a Santa Claus figurine; his was a Mrs. Claus figurine. They discovered their love once more, realizing they didn't want to start completely over, just start somewhere. A flashback to the Christmas Jack proposed and the year Jennifer received her hope chest flooded their minds. They kissed. Jack picked up Jennifer to carry her upstairs, but Abby stopped them.
Jack and Jennifer tucked Abby in bed, and she asked them to stay with her until she fell asleep. Jennifer lay down beside her and closed her eyes, seemingly very tired. Jack said, "Do you know how much I love you?" to no one in particular, but it was definitely to Jennifer. Abby told him she loved him and so did Jennifer. He kissed them both goodnight, headed to the door, and said, "Merry Christmas."
Colin went to see Jennifer and caught Jack professing his love to her and kissing her. He left before Jack and Jennifer saw him. Jennifer headed out, and Jack stayed behind for Abby. Colin was on the roadside and got a call from Tony but delayed the meeting because of his rage toward Jack. He pulled a gun from the glove compartment, ready to kill Jack. Jennifer spotted Colin, not the gun, and heard his resolve to kill Jack. Colin took off, with Jennifer in pursuit.
Meanwhile, Sami met with Tony and asked him to protect her from Colin, but when she wouldn't tell him why, he refused. She went to Dot Com and ran into Jack, who was confident about getting back together with Jennifer because things wouldn't work with Colin.
Jennifer followed Colin to the Salem Inn, where he met with Tony and exploded when Tony warned him not to lose focus. Jennifer eavesdropped from the corridor and watched Tony leave. As she turned to go, Colin opened the door and caught her. Desperate to save Jack, she tried to seduce Colin. Sami entered the corridor, going to see Colin, and stopped in her tracks when she saw Jennifer beg Colin to make love to her.
Nicole was at the Salem Inn to give Colin the five million dollar bribe, and Victor almost caught her. She covered that she was there to overcome her fear after being shot and convinced Victor to get a room so they could be together for a while. He complied, and in the room, she asked him to draw her a bath. Nicole sneaked the check into her glove just as Victor reentered. While Nicole was in her bath, Victor picked up her glove and found the check for five million dollars to Colin.
Nancy insisted Craig explain how he could be Chloe's father, promising not to get upset. Chloe walked in as he revealed he had tracked down Sykes, and Nancy finally broke down and told Chloe that Sykes had raped her. She was pleased that he was not Chloe's father -- Craig was.
Roman questioned Kate about Raymond Grant, but she distracted him by admitting Victor's threats to destroy her and Sami. Sami entered and was furious Kate had told, thinking it was her way of winning Roman. Later, Kate met with Tony, and he inquired about the secret bequest. He deduced that Stefano had left her a large sum of money and advised her to confide in him, threatening that if she didn't, he would find out why.