Georgie walks in on Lulu and Dillon in a close moment as they are trying to re-enact Ric Weber's murder. Georgie is furious that Dillon is willing to do so much to help Lulu. It doesn't help matters when even Spinelli can see the strong connection between Lulu and Dillon. Georgie is ready to let Dillon go but he reassures her that she is the only one for him. Sam and Jason discuss the idea of having a baby. Jason tells Sam he isn't sure that he is ready to bring a child into his dangerous life. Alexis and Ric get into a heated argument about their children. Ric offers to drop all of the charges against Sam on the condition that Alexis gives him full custody of Molly. Ric feels that Alexis puts Kristina first and that she loves Kristina more than Molly. Alexis and Ric begin screaming at each other before they realize that Kristina is in the room. Alexis calls Sam to come over and talk to Kristina because she is upset about seeing Alexis and Ric fight. Sam is able to reassure Kristina that it is ok for Alexis and Ric to fight and that it doesn't mean that they don't love her. Jax issues Carly an ultimatum. He tells her that if she goes after Sonny to the island, then he is calling off the wedding. Initially Carly is furious at Jax but after listening to his side of things, she agrees not to go after Sonny. Jax gets called away by a phone call and Carly becomes jealous and suspicious after seeing Jax laughing with an attractive woman at Kelly's. Carly later confronts Jax and she learns that the woman is a private investigator Jax has hired to help find his brother Jerry. Carly questions what will happen if Jax finds out Jerry is in trouble and she is upset when Jax tells her that he will go rescue Jerry.
Jason pays Liz a visit at General Hospital. He asks her if she thinks that he would have been a good father if he had been the baby's father. Liz reassures him that he would be a wonderful father and that a child would be lucky to have him in their life. After Jason leaves, Liz is distraught and she leaves work in a hurry. She goes to see Lucky at the PCPD and while she is trying to find a piece of paper to leave him a note, she finds the Ziploc bag of pills that was planted in his desk.
Lulu brings Spinelli home with her to the Quartermaines' so he can crash there. Despite everyone's reservations, Monica agrees to let Spinelli stay there. She quickly changes her mind after overhearing Lulu and Spinelli talk about trying to prove that Laura did not murder Rick Weber.
Lucky agrees to try to be more involved with Maxie's pregnancy and to be a good father to their child. But he makes it very clear to Maxie that they will never be a couple because he loves Liz.
Back at Jason's penthouse he and Sam again resume their conversation about having a baby. Sam is shaken by her visit with Kristina but she tells Jason that she feels that if they had a baby they would not destroy their family like Ric and Alexis have. Sam agrees to wait to try having a baby until Jason is ready to be a father.
Lucky appears to have been set up when Ric and Liz go through Lucky's desk and find a bag of pills. Lucky insists to both of them that he isn't using again and he's been set up. Liz has had enough and wants nothing more to do with him and storms out. While Lucky goes to take a drug test, Mac calls Maxie in and asks if she's been supplying Lucky with drugs again. She denies it and Lucky's test comes back clean. Lucky and Mac discuss bringing in the desk clerk who was working at the station earlier to see if he saw anyone around Lucky's desk. Meanwhile, Ric goes to the hospital where Liz has returned to work. He tries to comfort her, but she's fed up and doesn't want comfort from anyone. Epiphany tries to help, too, but Liz buries herself in her work. Lucky shows up to show Liz the drug test, but she's too frustrated to listen. She tells him that all that shows is that he hasn't taken drugs yet today. He will struggle with this for the rest of his life and it will only take one little pill to knock him off the straight and narrow. Liz tells him to leave her and her children alone, but Lucky threatens to not keep him from his kids. Meanwhile, Ric goes to church to confess to a priest about the sins he commits to get his way. The priest doesn't look so innocent, though.
Lulu comes to Jason and Sam and asks if Spinelli can live with them temporarily. Jason doesn't want to allow him to stay, but Sam convinces him that they owe him for helping her out. Spinelli immediately starts interfering and tells Jason that Sam can't have a baby because she's too hot. He can't ruin her body with motherhood. Later, he goes upstairs to his room and jams out to some loud music. Jason is annoyed, but Sam tells him to make the best of it.
Nikolas and Emily go to the pageant early so Nikolas can inspect the manger where Spencer will be lying. Nikolas is very nervous and makes the pageant authorities hang the star more securely before he allows Spencer to be put in the manger. Emily thinks it is cute how protective he is, but little does she know what's in store. Jax looks longingly as Nikolas takes Spencer up to the manger. While the pageant is going on, Nikolas gets a call from Alfred. He finds that someone has been held captive in the parapet room. Meanwhile, Colleen sets herself up in a new apartment. The landlord carries up baby furniture and asks her if she likes her new place. She tells him she can't wait to spend her Christmas with her son in the new apartment.
Jax and Carly put their foot down with Michael when he doesn't want to have Christmas or attend the pageant without his dad. Jax reminds him that Morgan is too little to skip Christmas, and he's been looking forward to the pageant. Michael agrees, but says he's not going to be happy. While the kids are at the pageant, Jax and Carly slip back to the house. Jax surprises Carly with a Christmas tree with a necklace wrapped around it. Carly reminds Jax that they're only engaged and when they are married they'll have even less time for each other between PTA meetings and other kid functions. Jax tells her that he wants to be with her, regardless. He then proceeds to tell her that he wants to see her in her new necklace, and only the new necklace.
Carly was distraught when Jax accidentally saw her in her bridal gown. She lamented to Bobbie that their marriage would be jinxed, and insisted they must find a new dress. Later, Jax was back at the house when the phone rang. It was a collect call from his brother Jerry.
At Lucky's request, Lulu tried to plead his case to a reluctant Liz. Liz criticized Lucky for involving his sister, and insisted that their marriage is over. Lucky speculated that Maxie was the one who planted the pills in his desk. This did not change Liz's feelings.
At Kelly's, Mike was curious about Maxie's craving for spicy mustard, as most women are bothered by it in pregnancy. Mike tried to reiterate to her that Lucky is devoted to Liz. Lucky arrived, and openly accuses Maxie of planting the medication. She vehemently denied it. As they argued on the steps, Maxie took a fall.
Robin helped Patrick find an apartment. She found one that reminded her of Paris, and fell in love with it. As they were about to take the apartment, the landlord suddenly claimed to have another offer. Robin and Patrick realized he was denied housing because of his work with HIV patients. The landlord countered that the other tenants in the building would be opposed to his occupancy. When Patrick threatened a discrimination suit, the landlord granted him the apartment. Robin expressed to Patrick that she was proud of him, and they begin to make love.
At Sam's pre-trial, Alexis became weak from her treatment and requested to be released from the case. Ric motioned to drop the charges, alleging that Sam killed Diego in self-defense. The judge dismissed the case. Sam brought a very weak Alexis home. She thanked Alexis for representing her. Alexis acknowledged that she did not want Sam in jail, but cannot forget what happened between Sam and Ric. Sam left, but reminds Alexis that she cannot do this alone. Alexis's side effects worsened. A call to her doctor did not help.
Jason was frustrated with Spinelli, and caught him smoking pot at the penthouse. He told him that this is not allowed in his house. Sam asked Jason for the drugs, in order to help "someone".
Ric continued to go to confession. He justified planting the pills by saying that Liz could leave Lucky with a clear conscience. The priest, who appeared to be Manny Ruiz, told him that it is never right to hurt someone, and encouraged him to do right
While Maxie and Lucky argue on the stairs at Kelly's, a light bulb goes off in Maxie's head and she tumbles down the stairs. Lucky and Lulu rush her to the hospital where she is admitted. When the doctor goes to get the ultrasound machine, Maxie quickly hides her fake pregnancy belly under her coat in the chair. When the doctor doesn't find a heartbeat, he assumes she has lost the baby. He wants to do a pelvic exam, but Maxie stalls by telling him she's been through enough. Meanwhile, Lucky insists to Liz that this was all an accident. He swears to her that he hasn't had any drugs since he left rehab. When the doctor comes to tell Lucky the news, he asks to see Maxie. She tells him that she knows this is what he wanted, since he didn't want their baby. She turned to him for comfort after Jesse's death, but then she fell in love with Lucky. She really wanted this baby. Lucky feels responsible for the miscarriage and vows to make it up to her. Meanwhile, Lulu tells Liz how worried she is about Lucky. Liz is worried, too. Ric overhears the conversations and immediately gets to work ruining Lucky's life.
Jason is questioned about planting drugs in Lucky's drawer at work, but then he begins to suspect that Lucky was set up by Ric. When Liz comes to see him later, he tells her so.
Sam takes Spinelli to go see her mom. Alexis is in terrible pain and can't keep anything down. She tells Spinelli that she isn't up for company. He tells the "goddess mother" that he has come to bring her some medicinal comfort and brings out a bag of pot. Alexis is horrified. She is an officer of the court and even for medical reasons, pot is illegal in NY. When the pain and nausea get too bad, though, she decides to go ahead and try it. She claims that it isn't working, but strangely has a craving for potato chips. Then she tells Spinelli that she likes his beanie hat, and he offers it to her. He starts to call her Mrs. Lansing, but she tells him that she prefers "goddess mother".
Jax decides to go rescue his brother, much to Carly's dismay. Lady Jane comes to Carly's house and they discuss the possibility that Jerry is doing all this to postpone the wedding. Jax comes back and tells them that he's done trying to rescue Jerry. He will always need saving, and there will come a day when he can't be saved. He tells them that he's sending someone else after Jerry. After Lady Jane leaves, Carly insists that Jax go find Jerry. She tells him that it's ok to postpone their wedding. When he comes back, they will plan another wedding and just not tell Jerry the date so he won't be able to ruin it.
While Colleen heads back to Port Charles, Nikolas and Emily take Spencer to see Laura. Nikolas is disappointed that she's back in a catatonic state and even seeing baby Spencer doesn't wake her. Emily tells him to be thankful for the time they had together. At least they got to talk to her again and tell her they loved her.
On the docks, Alexis bumped into Ned, where the former lovers sat down to catch up. Alexis gave Ned the update on her condition, and thanked him for her Christmas gift. He gave her warm words of support, which she deeply appreciated. She said she wished she had appreciated him more when they were together, prompting him to smile. (Nexis fans got their Holiday gift with this sweet scene!)
At the penthouse, Jason and Sam brought home a tree to decorate. She thanked him for sending Spinelli to Tennessee to spend the holiday with his grandmother. He was just glad to have him out of the house.
At her house, Carly broke the news to the boys that Jax was gone and the wedding was postponed. She promised they'd all elope when Jax returned.
At the hospital, Liz was upset that she couldn't get the hot toy of the season for Cameron. Audrey tried to calm her irate granddaughter. Lucky arrived and asked to escort Liz to the Christmas party. She turned him down. Alexis and the girls arrived and bumped into Ric. The adults remained civil and Alexis mentioned that Kristina still hasn't spoken. Mac and Lucky admonished Maxie for donning her traditional elf suit so soon after her "miscarriage," but she said she refused to sit home and mourn her "loss." Patrick pulled Robin behind the Christmas tree to smooch. Georgie, dressed as Mrs. Claus, was furious to find Dillon, dressed as Santa, with his pants down as elf Lulu adjusted his costume. It was innocent, but Georgie stormed off anyway.
As the children gathered 'round, Alan read the traditional Christmas story. Maxie snuck off to cry and Lucky consoled her. A warm exchange later, Maxie smiled at knowing she'd manipulated the man who she's obsessed with. After the reading, Tracy advised Georgie to give up on Dillon. Edward invited Skye to Christmas dinner but she said only if the invite included Lorenzo. Lulu teared up when Bobbie gave her the present Luke left behind for her — the engagement ring that he'd given Laura last month. Alexis and Sam were thrilled when Kristina spoke the words, "Merry Christmas, Mommy!"
Meanwhile, at the Christmas pageant, as Emily and a nervous Nikolas arrived with Spencer, Helena lurked in the background, as did a disguised Colleen. Mike showed up, camera in hand, to take pictures of his three grandsons. Father Coates mentioned to Emily that he wanted to introduce her to the new parish priest, Father Ruiz (the dead ringer for psycho Manny!). As the pageant began, Colleen, Helena and Father Ruiz all kept a watchful eye on the manger. Carly teared up when Michael spoke his lines, and Sonny appeared to hand her a handkerchief. Carly took it and hugged Sonny. The boys were thrilled to see their dad in the audience. The pageant was a hodgepodge of sweetness and light, and Morgan stole the show with his goofy antics as the Little Drummer Boy. The snow began to fall after the pageant concluded. Nikolas was relieved it was over. As Mike showed Nik his photos of the baby, a shadow fell over the manger.
On the docks, Liz was thrilled to find the toy she'd been seeking for Cam, courtesy of Jason. Liz was touched beyond words. During a montage set to "Have Yourself A Merry Little Christmas," Patrick and Robin headed to the supply closet as Epiphany smiled and shook her head. Edward went to ask the Qs about Alcazar but he just smiled and escorted Skye and Lila Rae home. Lulu tried on her mother's ring. Jason and Liz hugged. Michael told Sonny the camel missed its cue. Sonny was shocked to see Father Ruiz. Nikolas was horrified to find the manger empty and Spencer nowhere to be found.