Eve comes to Karen for Courtney's paperwork. Karen is concerned that they are releasing her too early. Eve explains that Joe and the doctors think she'll recover better at home, with Neil for Christmas. Karen says she should go away to stay out of Courtney's sight. Joe comes out with Courtney just as Frank arrives. Frank asks if she has everything she came with. Courtney quietly replies she has everything but her baby. Karen returns (I'm not sure when she left, since she was there during the whole previous scene - I guess she finally left during the opening credits), and talks to Eve about the accident. Karen went over the whole storyline - Joe's chance to be a father from birth, etc. Eve tries to reassure Karen that they are doctors, not Gods. They can't control everything - maybe she was driving too fast, maybe she hit a patch of ice. Either way she has to forgive herself so she can help Joe get over his grief. Karen feels a little better after their talk, but worries Joe won't be able to forgive her after he stops worrying about Courtney and thinks about his own loss.
At home, Mary is there to help out. Neil is excited that Courtney is home and runs upstairs to get a present for her for under the tree. Frank suggests that he and his mom take a walk so Joe and Courtney can tell Neil about the baby. Joe told Courtney that Neil means more to him than ever and Courtney means so much to him for giving him Neil. Neil comes down and they tell him about the baby. Neil feels like crying.
Outside, Frank blames himself for the baby's loss. Mary wonders why - Frank tells her they had a fight, he stormed off and she followed him. Mary told him it's not his fault. Frank says his selfishness may have cost Neil his only shot at recovery. He wonders how he can live with himself.
Later, Frank is back inside and Joe is out talking to his mom. Joe worries about Neil giving up. Mary doesn't think he will - he gets his strength from Joe. She told him he's a wonderful father, despite not having a good role model. Joe says he always had her.
Inside Frank tries to talk to Neil, but he's depressed and just wants to go plays video games alone in his room. Frank talks to Courtney and asks what he can do for her. She told him he is already doing it. He told her he doesn't want to see her or Neil get hurt anymore. She sees he has a gift for her, but he won't let her open it early. She asks if she doesn't deserve an early present - he decides she does and gives it to her. It's a frame ornament of Neil with a bat and (I think) Frank.
Eve and Karen talk about the good old days as interns which leads to talk about Julie. They both worry about her being sent to prison and not getting the help she needs. Karen hopes that Kevin can give the jury insight into Julie's true (i.e. pre-murdering) character.
Chris told Julie about meeting Nicole, who thinks he's just after Julie's money. Julie says that's typical of Nicole and that Mom also distrusts Rachel. Before Chris can say anything, Rachel comes up to them. She told Julie that Kevin wants Julie locked away, but Rachel won't let him.
Victor and Kevin arrive at the courthouse, Kevin is filling Victor in on the Ellen situation and that Matt is down checking things out. Victor wonders how Ellen discrediting Rachel will help the case. Kevin explains that the defense is based on Rachel helping Julie "remember" (Kevin did the air quotes thing) that she didn't commit the murders - discrediting her will discredit the memory. If they can't Julie could be set free and Kevin can't let that happen. On the stand, Victor told the court that Julie pulled a gun on him and admitting to killing John Kanelos. Leopold cross examines. Victor says the sword was his and Julie helped herself to it. Leopold points out her prints weren't on it - Victor says there is a straight forward answer that must have occurred to "even an attorney such as yourself" - Julie wore gloves. Victor cannot definitely say whether Julie was wearing gloves or not. He also cannot say for sure whether or not Greg Cooper was there. Rachel told Leopold she hopes he can do as well neutralizing Victor's son. Julie worries about Kevin's testimony and Rachel told her she has nothing to worry about. Rachel went to check in at the hospital. Chris told Julie that she should be worried, but about Rachel. He told her Rachel is up to something bigger than Julie's freedom. She disagrees, telling him after Chris and Christina, Rachel is the best thing to happen to her. She completely trusts her.
Kevin is up to testify next and wants Dara to get a break until the next morning. She told him the judge won't go for it. Apparently, she does get a short recess, because later, Kevin talks to Matt via phone. Matt is at the clinic, people say the picture of Ellen looks like Barbara Greene. But Barbara suddenly quit a few weeks ago, no forwarding information. Dara comes out and asks Kevin if he's ready to do some damage - Kevin looks doubtful.
At the lobby of the Courthouse, Dara is telling Kevin how much they need his testimony. He says he'll do his best but that he wishes Matt had found something on Rachel. They chat until Rachel approaches and Victor and Dara go into the courtroom. Rachel asks Kevin if there's anything she should know about. He responds that, since they are on the opposing side of a murder case, should they even be discussing it? She says she hopes that they both understand that whatever went on in the courtroom is not personal.
Chris comforts Julie while they wait for court to start. Court begins and Dara calls Kevin to the stand.
Courtney, napping on the couch, dreams the accident and wakes up gasping. Joe rushes to comfort her (*wretch*). She told him about her dream and that it was just a dream. It's not a dream that the baby's dead, she says. They share their grief and their reactions to others well-intentioned sympathies. She says she's getting thru it and she has Frank.
In the kitchen, Frank answers the door to Karen bringing Neil's gift. She says she doesn't want to upset Courtney but she'd like to see Joe. She and Franks chat and Karen says how unusual it is for a couple to get so close so fast. Franks shrug is off and Karen asks how long they've known each other (flashing back to the pictures). She asks if she can speak to him on the porch. He agrees and she told him about the picture and asks if he and Courtney were involved 10 years ago. He stalls and she comes right out and asks if he's Neil's father. He dances around it but she persists until he says no. But she can show Joe the picture; maybe it'll make things easier on him - or is it her? Joe comes out and asks what Karen's doing there. Frank went to check on Courtney and Joe asks what that was about. Karen says he just didn't want to upset Courtney. Joe says that the way Courtney is blaming Karen for the accident isn't right; she's in pain. She asks him to help her pick out a Christmas tree and he says it's too late but then relents at the suggestion of mistletoe. They hug and Karen says that if they stick together, they can get thru anything.
In the living room, Frank and Courtney admire the tree. Courtney asks him what's wrong and he says he's just worried about Neil's reaction. He tells her that he's been thinking about the fight they had the night of the accident. He says she was right - her children's parentage should be kept between them. Courtney says they won't keep it a secret forever. She told him she likes him taking care of her and they cuddle.
In the courtroom, Kevin is testifying. He answers Dara's questions about Julie and how she had confessed to the murders; how she told him Cooper had brainwashed her into committing the murders. He agrees with the defense that Julie was brainwashed but the agreement ends there. He believes she is capable of murder and that, altho brainwashed, she did commit the murders. On cross, of course, his past is brought up to discredit him. It works pretty well.
Back in the living room with Frank and Courtney, Courtney is sorry she gave in and changed her testimony. Frank does forgive her under the circumstances. She asks where the real Frank is and he says he's there. She wonders how it is that Neil only got the best of each of them. Frank says Neil is the best kid in the world and their daughter would have been the same. They will never forget her.
Karen and Joe come in the kitchen door and she's apologizing for her car breaking down. She didn't have it checked after the accident because it was fine. Joe comments about her car having so little damage while Courtney's was so bad. She told him he can talk to her about anything but he gets carburetor spray from under the sink and went to start her car. Karen turns to see Frank and Courtney coming into the kitchen. Courtney graciously asks what the Hell she's doing there. Courtney went into nasty bitch mode and refuses Karen's apology and told her to get out. Joe comes in and asks what's going on and Frank and Courtney demand that Karen leave and Joe and Karen leave. Courtney expounds on how much she hates Karen (forgetting that she was speeding and driving unsafely herself as evidenced by her dream) while Frank sympathizes. Courtney swears revenge.
Back at court, Julie is pleased with how the day went. She and Chris have a few minutes together - usual mush. Kevin, preparing to leave, is approached by Rachel and they rerun their usual discussion . She told him to move on, he says no, she gets threatening, then he gets threatening.
Matt returned from Florida with a file that contained information about a former patient of Rachel’s whose case had eerie similarities to Julie’s. An intrigued Kevin and Eve set out to ascertain if getting dangerous criminals released was a pattern for Rachel. Meanwhile, Rachel brought Scott and Lucy a special Christmas greeting from Julie, and Lucy was genuinely affected by what Julie had written in the card. Scott went to pay his father one last visit after learning from Rachel that DV was being sent away to a long-term care facility. Later, Lucy had another dream about Julie and became convinced that it was a sign.
After her latest dream, Lucy convinced Scott to sit in on Julie’s trial with her. At the courthouse, an interested Kevin noticed the tension brewing between Chris and Rachel. Kevin then gave Chris a firm warning about Rachel. Dara devastated the defense’s case by playing the tape of Julie’s confession for the jury. Later, Chris and Julie shared a heartbreaking goodbye before she was returned to Ferncliff for the night. Meanwhile, Joe admitted to Karen that he was angry about the part she played in Courtney’s accident.
Rachel calls Julie to see how she's doing. Julie is not happy to be spending the holidays in a mental institution and is depressed over the way the trial is going. Rachel promises to find something to cheer her and hangs up. Chris walks up and Rachel told him she has the perfect present for him. Later, Rachel arrives at the hospital with a special visitor for Julie - Chris! Julie's spirits rise through the roof! (I just love these two together!!) Rachel somehow was able to get him visiting privileges, at least for the day. They thank her and find out that she has no Christmas plans. Chris told her he knows what it's like spending holidays alone with a martini. Julie says Rachel is a member of her family and wants her to stay. Julie has homemade gifts for them. They wouldn't let her wrap them, so she tells the two to close their eyes and hold out their hands. She gives Rachel a lace edged handkerchief embroidered with an R. Rachel seems truly touched and says she has to go and leaves. The gift for Chris is a box with a note - "To Chris, who helps me escape any box". Chris says the goodies he brought were confiscated, but he has three promises: 1) He'll get her out, 2) Christmas next year and every year afterwards will be spent at home with him and her daughter (Julie corrects him - "Our daughter"), and 3) no matter how hard she tries to spend their millions, he won't complain - all he has is theirs now. He holds up imaginary mistletoe and they kiss.
Serena and Scott are about to sneak peeks at their gifts when Charlene comes in with Christina. They discuss the GH Christmas party, Serena wants to stop and see the Wyndham's Santa first. She explains that the store Santas are not the real one - they are just his helpers, so she wants to see as many of them as possible. One of the gifts is partly open, having been attacked earlier by Christina. Scott notes that it's the gift that Rachel brought over. Serena opens it - it's a hand made rag doll.
Kevin and Eve stop by with gifts. Serena and Eve go to search for Kevin and Eve's gifts under the tree. Scott and Kevin discuss how Kevin's testimony helped the prosecution - Kevin fills Scott in about the other mentally deranged patient that Rachel helped. Eve says they should leave, the Baldwins, etc. were about to leave. Kevin told them that he and Eve are on their way to Wyndhams - Victor called and that's the only word they could hear.
At Wyndham's, Lucy talks to the scratchy voiced Santa and realizes it's Victor. He needs her help, he can barely speak. He talks her into being Santa. Lucy talks to a couple kids, who don't notice her heavy eye make-up, giving one fashion advice. Victor is dressed as an elf (fortunately, there must have been a huge elf costume on hand!) He told Lucy what a good job she's doing but she's panicking because of Serena's arrival. Serena still believes in Santa and she doesn't want to disappoint her (not having been in the first scene where Serena explained that she knows the real Santa isn't hanging around GH and department stores.) Kevin returns with a gift for Mary from Victor - a dragonfly pin, which Victor proclaims as perfect, it's an ancient Chinese symbol of faithfulness and strength. He went back to work as Eve appears. Eve and Kevin realize that Santa is Lucy (Eve: "No wonder the line is so long - she's probably giving out make-up tips!") They decide to go home and start a tradition of tree-decorating.
Lucy tries to fool Serena, who is no fool and calls her Lucy Claus. Lucy tries to keep up the charade until Serena calls her Mom. Lucy is stunned and Serena asks if it's okay to call her that - of course, Lucy says it is - and it's a nice Christmas gift. Serena went to tell her little sister that they need to get candy canes from the weird big elf. Scott asks if he could sit on Santa's lap and gives "Santa" a big long kiss. When he pulls away, the beard is stuck to Scott, the waiting children all laugh, luckily, none of them thought she was the real Santa!