Walker returns and apologizes to Blair for his outburst earlier. Blair makes plans for her and Walker to spend a romantic night at the Bayberry Inn. Walker goes to see Kevin but encounters Kelly, who tells him that Kevin wants to divorce her. Kelly fuels Walker's jealousy and suspicions about Kevin and Blair. Later, while making love to Blair, Walker is plagued with images of her and Kevin. Blair is frightened by Walker's behavior and leaves to spend the night at Dorian's. Blair begins to suspect that Walker might actually be Todd. Kevin is determined to move ahead with a divorce, despite protests from Kelly and Asa.
David and Dorian team up to find a phony heir to inherit Aunt Betsy's fortune. Jen feels guilty after making love with Rex. An unseen person watches Jen and Rex in their motel room. Marcie berates Michael/Al for his association with Madison. Marcie is taken aback by Michael/Al's anger towards Madison. Marcie later discovers that Madison is the latest victim of the Music Box Killer and tells John that Michael/Al had been arguing with Madison. Natalie picks up her pool cue for the first time since Cristian's death. Lindsay and Daniel enjoy their date.
Kevin moves into the Palace, leaving Kelly to explain to Asa.
Blair realizes that Walker is Todd. Fantasizing her life as a 1940's movie, she puts together the pieces and tries to figure out the ending. With the help of half of Llanview, she dreams that Todd is forgiven and accepted back into their lives. With the realization that Todd will never change, her fantasy reminds her of who he really is.
When Starr finds her mother crying, she demands to know if her dad screwed up again, causing Blair to realize that Starr knew the truth. Starr quickly covers and rushes to call Todd. Getting her message, he heads to Dorian's to try to salvage his marriage.
When her daughter leaves her alone, Blair's fantasy picks up with her plotting to get her children back and planning Todd's murder.
Back in reality, Blair heads to the door with a gun in her hand when Todd starts banging on it.
The police begin their investigation as Marcie finds Madison's body, another victim of the Music Box Killer. Bo and John talk about Ron Walsh and the fact that their tail lost him. They also have a witness who saw the deceased arguing with Michael McBain, who is called into the station. He rehashes his argument with Madison, mentioning that he used to date her and he was admonishing her for the Al/Marcie incident. Luna reminds him that he doesn't look like Al anymore as Marcie overhears him mention that he's a friend of hers. She disputes it vehemently. Al/Michael is drilled by John and Colson. Bo unsuccessfully tries to reach Gabrielle by telephone.
A suspicious acting Ron turns up at Rodi's and orders some drinks and a shrimp dinner to go. Jess stops by and sees a favorite professor, Dr. Haver, holding court with some other teachers. She tells him about an article she's writing on sexual harassment on campus and mentions the series of incidents involving a particular teacher. She's like to have his advice, since he's a psychology teacher in the field. He gives her a profile of the teacher and suggests that Jess report this teacher to the university. Antonio shows up and tells Jess he has something to tell her when they leave, but an acquaintance spreads the word of Madison's murder, which prompts a new discussion at the table. Dr. Haver believes that the killer keeps killing the same person over and over again, out of a love and/or hate relationship.
Kevin dreams that Blair seduces him and is startled awake by the phone ringing. It's Kelly and she wants to know if he's alone. Kevin insists he wants a divorce and can't believe she wants to fight it.
Todd pounds on Dorian's front door, looking for Blair who waits on the other side, gun in hand. Dorian talks her out of using it and tells Todd that she isn't there. Blair realizes that Dorian knew about Todd's true identity and is furious. Dorian admits that was the reason she was travelling to Saranac but both Viki and Todd changed her mind. Blair prefers to think that nothing has changed. Todd next tries Kevin's room and bursts in, looking for his wife. Not finding her there, he heads to the penthouse, where she appears in the dark.
Ron Walsh is brought into the station and upon questioning, admits that he thought a mugger was following him, which is why he went out of his way to lose him. Colson doesn't believe him but suddenly Ron appears unable to breathe and passes out. Al/Michael suspects an allergic reaction to the shrimp that he finds in the bag that Ron was carrying and gives him an EPI. Ron is brought to the hospital. John praises his brother who mentions that he really wanted to be a lawyer since he was a boy. John corrects him, reminding him that it was a doctor he had his sights set on. Al/Michael smoothes things over by saying it was only a joke. Daniel appears ready to prosecute Ron as Bo loses patience with his tactics and interference. Marcie returns from the hospital and graciously thanks Al/Michael for saving her brother's life. John excuses himself from the room.
Gabrielle drinks at an out of the way bar and is spotted by Troy MacIver. She tries to leave but he promises that he won't hurt her. In fact, he wants to apologize for the wrongs that he did to her, he says. He's out of jail and on medication, finally understanding his terrible acts, he confesses. Gabby thinks otherwise and asks him if he's escaped instead. Troy feels responsible for her drinking but she reminds him of her son's death. He inquires about Bo and asks if he's with Nora since she always gets what she wants. Thanks to her, his life has been ruined, he's been betrayed, Troy continues. No other woman will have anything to do with him. Furthermore, he believes that Nora has destroyed Gabby's life as well. He grabs her hand in comfort and suggests that Gabby not tell Bo about their meeting. She agrees to keep it a secret.
Kelly pays Dorian a visit and pleads with her to make sure that Blair goes back to Todd. She implores Dorian to never tell Blair about Walker's true identity so that she won't run to Kevin. Dorian suggests rather blatantly that Kelly's marriage must be rather fragile if it all hinges on Blair's not learning the truth about Todd. Kelly becomes indignant and leaves in a huff, telling her aunt that her marriage is fine.
Blair doesn't let on that she knows Todd's true identity but instead mentions that he'd be dead to her if he was like Todd. He finally admits to her constant badgering that he did go to look for her at Kevin's place. She cites the fact that Todd was always jealous too. Wanting to start her plan of action, she suggests that Todd wait upstairs for her while she locks up. "Jealous won't even begin to describe you when I'm done with you, Todd, she mutters to herself. She places a call to Kevin and sets up a dinner date for the following evening. Todd drifts back downstairs and begins to pump her for information on the phone call she's just made. Elusively, she tells him she was speaking to Dorian. He heads back upstairs as she locks the door. "Let the games begin," she whispers.
Jess and Antonio head for home as Nat looks at them sadly. John arrives and tells Nat that he's worried about her. She needs to be careful with the killer on the loose, he advises her.
When Rex comes into Rodi's, Natalie asks if his good mood is because Jen finally went to bed with him. At the Palace, Jen becomes upset when Renee suggests that Joe make a statement to the parishioners about her. When Joe has to assist Andrew, Jen calls Rex and asks to see him. At Rodi's, Natalie looks on as Jen kisses Rex, fed up, she kicks her sister-in-law out of the bar. Joey shows up at the bar, Roxy begs Nat not to tell him about Jen. When Joe asks his sister about his wife, she decides not to tell him that she left with Rex.
Blair tells Dorian of her plan to get even with Todd. When Blair refuses to tell Todd where she will be dining, he calls the Palace to try to trick Renee into tell him whether or not Dorian and Blair will be dining there. While Dorian is supposed to be having dinner with Blair, she shows up at the penthouse to talk to Todd and tells him that she cancelled dinner. When Todd tries to convince himself that Blair wouldn't be with Kevin, Dorian plants a seed of doubt in his mind.
Kevin tells Kelly that he wants to go public with their separation. She tries to convince him to go to counseling, but Kevin is determined to follow through with the divorce. Blair and Kevin meet in his room for dinner, where Blair proceeds to tell him that divorcing Kelly is a mistake. He informs her that his only regret is that he hasn't slept with her yet. When she becomes upset, she admits to Kevin that she figured out that Walker is Todd. Bribing a bellhop, Todd gets a key to Kevin's room. As Kevin tries to comfort Blair, Todd pushes the door open, finding them together.
At Rodi's, Roxy confronts John and wonders when they are going to catch the Music Box Killer. Helping her decorate for Christmas, Natalie and John compare their childhood holidays. After leaving a present with John for Michael, Marcie leaves to prepare to sing at St. James.
When Jen tries to go back to Joey, Rex informs her that he is tired of being used and accuses her of denying who she really is. When he kicks her out of his apartment, she goes straight to Rodi's for a drink.
Kelly informs Viki that Kevin moved out of Asa's and demanded a divorce, then tells her that she is certain that Kevin and Blair slept together in Saranac. Viki tries to tell Kelly that she doubts Kevin was in any condition to have an affair. At the church, Viki and her family sing carols with the congregation and are stunned when Jen stumbles in drunk, confronting everyone who spoke ill of her. Stating that her Christmas present to Joey is letting him go, she takes her ring off and runs out of the church. When she returns to Rex's, he insists that she lay on the couch instead of climbing in his bed. When Rex leaves for work, the Music Box Killer attacks Jennifer.
When Todd confronts Kevin and Blair, Blair cuts him off before Kevin can tell him that she knows the truth about his identity. When Todd calls Blair a tramp, Kevin attacks him. Blair asks for a few minutes with Walker, then confronts about him about his accusations. Playing games with Todd's mind, she gives Kevin a friendly kiss as she expresses her hope he and Kelly don't divorce.
Starr insists that if Dorian won't accept Walker, she will stay with her Aunt Viki. When River starts playing the piano, Starr demands that he stop playing classical music. Confronting his grandmother, he tells her that nothing she can do is going to stop him from thinking about Adriana. When Blair and Todd show up, she tells Dorian that their plan is working perfectly but is stunned when Kelly opens the door and tells Blair that she will not steal Kevin from her. Dorian begs Blair to let Kelly in on her plan, but she refuses.