Lucas and Carrie had dinner in Los Angeles, unaware that Austin and Sami were also there, trying to close the deal to take over Carrie's company. Lucas suggested to Carrie that he buy her company, and she misunderstood. She was deeply hurt. Lucas explained he was only doing it so that she could return home to Salem.
Nicole infiltrated the High Style offices, but Becky was onto her. Nicole managed to steal a vital document, and Becky noticed it was missing and called Carrie. Carrie moved off to the ladies' room in the restaurant to take the call.
Austin asked Sami how Carrie was doing, and Sami was furious that all he cared about was Carrie. Later, Austin apologized and said he hadn't been thinking. Nicole arrived, and she and Sami had words. Nicole spilled wine on Sami's dress, which sent Sami to the ladies' room, on a collision course with Carrie.
Worried about Jennifer, Frankie called Hope and said that he was leaving. Hope thought it was clear Frankie wanted to stay. Jennifer was in the garden when she met face-to-face with Jack. He told her that she should move on with Frankie. She rushed in to tell Frankie and Hope that Jack was alive.
Victor learned of Kate's treacherous deed of attempting to switch Shawn's blood type. He was about to turn her in to the cops when Kate told him Shawn was the father of Belle's baby. Kate tried to appeal to Victor, but he told Kate that she would tell Philip the truth.
Shawn showed up with food for Belle, and they had a few nice moments. Shawn looked at the baby and said she could have been his.
At the Los Angeles restaurant, Lucas and Nicole had words, and Austin nearly lost his funding. Fortunately, Nicole stepped in and helped put the pieces back together.
Carrie was trapped in the ladies' room, forced to listen to Sami prattle on to an attendant about her troubles with Austin and Lucas. Sami actually had some nice words about Carrie. Carrie slipped and was nearly caught but got out of there and found Lucas. She told him they needed to go, but it looked like Austin and Sami had spotted Carrie.
Jennifer tried to make Frankie and Hope understand that she had seen Jack. Hope talked to Jennifer about her still wanting Jack to be alive. Jennifer explained what Jack had told her about Frankie, and Hope wondered if Jack's ghost had returned. Jennifer admitted that she did have feelings for Frankie, but Frankie was not Jack. Unbeknownst to Jennifer, Frankie had overheard.
Victor wanted Kate to tell Philip the truth about the baby, but Kate avoided it. A medical crisis developed, and Kate managed to avoid telling Philip the truth for a bit longer. Kate pressed Victor, and he reluctantly agreed to keep quiet about the paternity of the baby for the time being.
Lucas helped Carrie avoid Austin and Sami. Carrie confessed she hadn't dated because she still loved Austin. She'd thought she could have him if Sami had married Lucas. He asked whether someone else would do. Carrie refused to compete with her sister again. She'd move on without him but didn't think Austin would take Sami back. Lucas tried to take her home, but she had to retrieve the file of her five-year business plan.
Austin ran into Rori Finch, a friend from New York. He said he'd enter the Rolling Stones concert raffle and give a separate donation for hurricane victims. Rori gave him an appreciative kiss. Austin led Sami underneath the mistletoe then dipped her. They kissed deeply. Hurt, Carrie left and cried on Lucas' shoulder. It was Sami's biggest and best kiss ever -- until Rori announced they'd won the Christmas Kiss for Katrina Contest. Sami shrugged it off, certain the kiss had been real. She determined she'd be the next Mrs. Austin Reed.
At Chez Rouge, Maggie asked after Claire. Marlena wanted to return to the hospital. Alex said she shouldn't be concerned with her family. Stress would exacerbate her amnesia. He wanted to dance to "I'll Be Home for Christmas," as on their first Christmas. It might jog her memory. She called him out for trying to take her mind off her family.
Kate hadn't eaten in two days, so John insisted on taking her to dinner. She wanted him to move on, as Marlena had asked. Maggie played matchmaker for John and Marlena, who kissed. Alex pleaded his case to Kate. She had no chance against Marlena and was focused on Philip and Claire.
Belle paced. Seeing Shawn, she choked up and recounted Claire's kidney failure. Lexie told them Claire was hemorrhaging. Belle felt faint and swayed into Shawn's arms. Blood supplies were low, but without more transfusions, Claire would die. It was too soon for Belle and Shawn to donate again. The blood bank had no luck with previous donors. Shawn conned his way into donating two pints. When Lexie had more bad news, Belle screeched she needed Shawn.
Lexie and Belle were shocked when the nurse rushed in with another blood transfusion for the baby. They realized Shawn had lied and risked his health to save Belle's little girl. Belle was moved and found Shawn just as he collapsed. Belle couldn't revive him. Lexie entered, stabilized Shawn, and read him the riot act about his reckless behavior. Shawn didn't care what happened to him; all that mattered was saving the baby. He felt as if she were his own child.
The baby's condition worsened, and Belle called John. John, Marlena, Kate, and Alex rushed to the hospital. When the alarms sounded again, a tearful Belle collapsed in Shawn's arms. Kate was not pleased.
John kissed Marlena, and she was upset. John pointed to the mistletoe and feigned that it was simply a holiday tradition. Nearby, Alex encouraged Kate to go after John, but Kate said it was no use. Alex, suddenly wondering where John was, moved off with Kate and found John and Marlena kissing.
Alex was angry even though Marlena said it didn't mean anything -- it was just the mistletoe. Marlena had memories of being with John and with Alex during holidays past. Alex asked which memories had stronger feelings -- John hoped Marlena would pick him, but Marlena chose Alex. John was fuming, and Kate began to think that she might have a chance with John after all.
Bo and Hope spent a romantic night, decorating the tree and hanging Christmas stockings. Hope mentioned that her grandmother had ordered a Christmas ornament with Belle's name on it for the Horton Christmas tree. Alice was keeping it, believing eventually Shawn and Belle might be together. Alice was seldom wrong. Hope had bought a stocking for Chelsea, and Bo was touched. Hope considered Chelsea a part of their family. Deeply moved, Bo danced with Hope, and they made love.
Bonnie couldn't wait for Mimi to get her own ornament on the Horton Christmas tree. Mimi blurted out that she was sleeping with Shawn, and Bonnie did a happy dance; it was Mimi's chance to nail a Horton trust fund. But whatever Mimi did, she needed to keep Shawn away from Belle. Mimi planned to surprise Belle and Philip with a fully decorated Christmas tree.
Claire's situation became dire, and Father Jansen was called to baptize her and give her last rites. Shawn, Mimi, Marlena, Alex, John, and Kate were worried and helpless. Belle didn't want everyone staying on a "death watch" and asked them to please leave so she and Philip could be alone with their daughter. Shawn went over to Bo and Hope's and got a special angel from the Christmas tree, which he took back and hung on the baby's crib.
Mimi heard two nurses discussing Shawn's blood type matching the baby's. Marlena and Alex returned to the penthouse. John, concerned for Marlena, watched from Kate's hotel room as Marlena berated herself for not doing more for Belle. Alex reassured her and said he loved her and would be there for her. He kissed her, and Marlena responded. John watched and told Kate it looked like he'd lost Marlena.
Chelsea and Max visited Bo and Hope. Chelsea saw the stocking Hope had bought for her and appeared to be moved. Bo caught Max and Chelsea kissing and warned Max not to mess with Bo's daughter. Max assured Bo his intentions were honorable. Chelsea bonded with Zack, and Bo lectured her about her recent speeding. Chelsea insisted she'd be careful. After she left to go back to the tree trimming with Billie and Patrick, Chelsea spun off the road and had an accident.
Austin and Sami won tickets to the Rolling Stones concert. Meanwhile, Lucas managed to get two tickets for him and Carrie via Titan connections. They all arrived to go to the concert, clearly on a collision course.