Due to the Christmas holiday, there is no recap of One Life to Live.
Todd tells an appalled Sam and Viki why he had Blair arrested. Meanwhile, Skye is amused to learn how her cellmate landed in the slammer. After purchasing an enormous diamond ring, Todd daydreams about marrying Blair and once again having his family intact. Lindsay warns Asa he's going to prison if he doesn't pay up by New Year's Eve. Todd enjoys imagining the revenge he'll someday take on all his many enemies. During the lighting of the town's Christmas tree, Lindsay and Melanie indulge in separate fantasies about the men in their lives. Starr pesters her father to make her holiday wish come true by having her mom released from jail and marching her to the altar instead. Blair awakens with a start from a dream about confessing her undying love to Todd. Antonio's contribution to the tree lighting ceremony inspires visions of sugar plums to dance in Sophia's and Roseanne's heads. Todd's holiday fantasy ends badly when everyone deserts him even in his daydreams.
Sophia snarls at Roseanne during another confrontation about the man they both desire. Meanwhile, Antonio's new partner proves to be a major pain as they sit through a long stake-out. Still reeling from the news about her child's identity, Rae is grateful when Myrtle suddenly appears on her doorstep to offer some consolation. Todd apologizes to Blair for having her arrested, then watches with interest as his ex and her cellmate begin clawing at one another in a scene straight out of every "women behind bars" B-movie. Rae tells Myrtle she's decided to reveal to Skye their family ties. Jessica and Will receive a video from Todd in which he explains why he's signed over control of "B&B" to them as a combination Christmas gift and peace offering. Rae has a change of heart and elects to keep mum following a vicious outburst from Skye. Todd drops the charges and escorts a perplexed Blair back to the penthouse. Myrtle advises her daughter to let Skye go on believing that she's a Chandler.
Charlie objects when Kevin reveals that he's run a background check on all his employees. A disconsolate Rae tells John that his love is the only thing keeping her sane during this trying time. As Blair returns to the mansion to pick up the rest of her things, Max thanks Nora for agreeing to defend Skye. Todd appears for his first therapy session and demands that Rae put aside her personal problems in order to treat him. Joey and Kelly finally sit down with their attorneys to hammer out a divorce settlement. Across town, Max and Blair bitterly begin the same process but without benefit of counsel. John visits Skye in her cell and presses her to explain why she won't defend herself. Rae loses her patience with Todd when he doesn't utter a single word during the entire hour. Charlie secretly destroys some crucial evidence against "Mr. Gray." John tells Rae he thinks Skye is innocent.
Asa delivers the final payment to Lindsay, along with a news flash about his son getting ready to pop the question to her sister. Bo prepares his officers for a long night of patrolling as New Year's Eve arrives. Over several rounds of drinks, Charlie pumps Joey for the inside info on his skewered marriage to Kelly. Todd trails Blair to the hottest new bar in Llanview, where he watches her flirt outrageously with Cristian and every other man in sight. Joey admits to Jessica how hurt and angry he still is regarding the whole mess with Kevin and Kelly. Meanwhile, Kelly vows to make Kevin's New Year's Eve the most special one ever. Sophia rolls her eyes in disgust after Bo hires Roseanne to be the precinct house's receptionist. An enraged Lindsay tells Asa that Melanie will marry Bo only over her dead body. Later, Lindsay's tearful recollection of their father's dying day makes Melanie highly uneasy. A vengeful Todd turns out the lights all over Llanview.