Lucas and Carrie have dinner in Los Angeles unaware that Austin and Sami are also there trying to close the deal to take over Carrie's company. Lucas suggests to Carrie that he buy her company and she misunderstands; she is deeply hurt. Lucas explains he was only doing it so that she could come home to Salem.
Nicole infiltrates the High Style offices but Becky is on to her. Nicole manages to steal a vital document and Becky notices it's missing and calls Carrie. Carrie moves off to the ladies' room in the restaurant to take the call.
Austin asks Sami how Carrie is doing and Sami is furious that all he cares about is Carrie. Later, Austin apologizes and says he wasn't thinking. Nicole arrives and she and Sami have words. Nicole spills wine on Sami's dress, which sends Sami to the ladies room on a collision course with Carrie.
Worried about Jennifer, Frankie calls Hope and tells him that he's leaving. Hope thinks it's clear Frankie wants to stay. Jennifer is in the garden when she comes face-to-face with Jack. He tells her that she should move on with Frankie. She rushes in to tell Frankie and Hope that Jack's alive!
Victor learns of Kate's treacherous deed of attempting to switch Shawn's blood type. He's about to turn her in to the cops when Kate tells him Shawn is the father of Belle's baby. Kate tries to appeal to Victor but he tells Kate that she will tell Philip the truth.
Shawn shows with food for Belle and they have a few nice moments; Shawn looks at the baby and says she could have been his.
At the Los Angeles restaurant, Lucas and Nicole have words and Austin nearly loses his funding. Fortunately, Nicole steps in and helps put the pieces back together.
Carrie is trapped in the ladies' room, forced to listen to Sami prattle on to an attendant about her troubles with Austin and Lucas. Sami actually has some nice words about Carrie. Carrie slips and is nearly caught but gets out of there and finds Lucas. She tells them they need to go, but it looks like Austin and Sami have spotted Carrie.
Jennifer tries to make Frankie and Hope understand that she did see Jack. Hope talks to Jennifer about her still wanting Jack to be alive. Jennifer explains what Jack told her about Frankie, and Hope wonders if Jack's ghost did come back. Jennifer admits that she does have feelings for Frankie, but Frankie is not Jack. Unbeknownst to Jennifer, Frankie has overheard...
Victor wants Kate to tell Philip the truth about the baby but Kate avoids. A medical crisis develops and Kate manages to avoid telling Philip the truth for now. Kate presses Victor and he reluctantly agrees to keep quiet about the paternity of the baby for now.
Lucas helps Carrie avoid Austin and Sami. Carrie confesses she hasn't dated because she still loves Austin. She thought she could have him if Sami married Lucas. He asks whether someone else would do. Carrie refuses to compete with her sister again. She'd move on without him, but doesn't think Austin will take Sami back. Lucas tries to take her home, but she has to retrieve the file of her five-year business plan. Austin runs into Rori Finch, a friend from New York. He'll enter the Rolling Stones concert raffle and give a separate donation for hurricane victims. Rori gives him an appreciating kiss. Austin leads Sami underneath the mistletoe, then dips her. They kiss deeply. Hurt, Carrie leaves and cries on Lucas's shoulder. It was Sami's biggest and best kiss ever...until Rori announces they've won the Christmas Kiss for Katrina Contest. Sami shrugs it off, certain the kiss was real. She'll be the next Mrs. Austin Reed.
At Chez Rouge, Maggie asks after Claire. Marlena wants to return to the hospital. Alex says she shouldn't be concerned with her family. Stress will exacerbate her amnesia. He wants to dance to "I'll Be Home for Christmas," as on their first Christmas. It might jog her memory. She calls him out for trying to take her mind off her family. Kate hasn't eaten in two days, so John insists on taking her to dinner. She wants him to move on, as Marlena asked. Maggie plays matchmaker for John and Marlena, who kiss. Alex pleads his case to Kate. She has no chance against Marlena and is focused on Philip and Claire.
Belle paces. Seeing Shawn, she chokes up and recounts Claire's kidney failure. Lexie tells them Claire's hemorrhaging. Belle feels faint and sways into Shawn's arms. Blood supplies are low, but without more transfusions, Claire will die. It's too soon for Belle and Shawn to donate again. The blood bank has no luck with previous donors. Shawn cons his way into donating two pints. When Lexie has more bad news, Belle screeches she needs Shawn!
Lexie and Belle are shocked when the nurse rushes in with another blood transfusion for the baby. They realized Shawn lied and risked his health to save Belle's little girl. Belle is moved and finds Shawn just as he collapses. Belle can't revive him. Lexie comes in, stabilizes Shawn and reads him the riot act about his reckless behavior. Shawn doesn't care what happens to him, all that matters is saving the baby. He feels as if she was his own child. The baby's condition worsens and Belle calls John. John, Marlena, Kate and Alex rush to the hospital. When the alarms sound again, tearful Belle collapses in Shawn's arms. Kate is not pleased.
John kisses Marlena and she is upset. John points to the mistletoe and feigns that it is simply a holiday tradition. Nearby, Alex encourages Kate to go after John but Kate says it's no use. Alex, suddenly wondering where John is, moves off with Kate to find John and Marlena kissing. Alex is angry even though Marlena says it didn't mean anything, it was just the mistletoe. Marlena has memories of being with John and with Alex during holidays past. Alex asks which memories have stronger feelings -- John hopes Marlena will pick him, but Marlena chooses Alex. John is fuming and Kate begins to think that she may have a chance with John after all.
Bo and Hope spend a romantic night decorating the tree and hanging Christmas stockings. Hope mentions that her grandmother ordered a Christmas ornament with Belle's name on it for the Horton Christmas tree. Alice is keeping it, believing eventually Shawn and Belle may be together. Mrs. H. is seldom wrong! Hope bought a stocking for Chelsea and Bo is touched. Hope considers Chelsea a part of their family now. Deeply moved, Bo dances with Hope and they make love.
Bonnie can't wait for Mimi to get her own ornament on the Horton Christmas tree. Mimi blurts out that she's sleeping with Shawn and Bonnie does a happy dance; this is Mimi's chance to nail a Horton trust fund. But whatever Mimi does, she must keep Shawn away from Belle. Mimi plans to surprise Belle and Philip with a fully decorated Christmas tree.
Claire's situation becomes dire as Father Jansen is called to baptize her and give her last rites. Shawn, Mimi, Marlena, Alex, John and Kate are worried and helpless. Belle doesn't want everyone staying on a "death watch" and asks them to please leave so she and Philip can be alone with their daughter. Shawn goes over to Bo and Hope's and gets a special angel from the Christmas tree, which he brings back and hangs on the baby's crib. Mimi hears two nurses discussing Shawn's blood type matching the baby's... Marlena and Alex return to the penthouse. John, concerned for Marlena, watches from Kate's hotel room as Marlena berates herself for not doing more for Belle. Alex reassures her and says he loves her and will be there for her. He kisses her and Marlena responds. John watches and tells Kate it looks like he's lost Marlena.
Chelsea and Max visit Bo and Hope. Chelsea sees the stocking Hope bought for her and appears to be moved. Bo catches Max and Chelsea kissing and warns Max not to mess with Bo's daughter. Max assures Bo his intentions are honorable. Chelsea bonds with Zack and Bo lectures her about her recent speeding; Chelsea insists she'll be careful. After she leaves to go back to the tree trimming with Billie and Patrick, Chelsea spins off the road and has an accident.
Austin and Sami win tickets to the Rolling Stones concert. Meanwhile, Lucas manages to get two tickets for him and Carrie via Titan connections. They all arrive go to the concert, clearly on a collision course.