At the precinct house, Eve told Ian how she was mugged and had her purse and car stolen. A flustered Alison pulls away from Rafe and nervously assures Jamal that things are not how they appear. Watching Kevin tenderly interact with a mystery lady in the park, Lucy vows to find out what's been going on behind her back. Though Rafe claims he was merely kissing Alison goodbye, Jamal angrily demands a more plausible explanation from his girlfriend. After Val and Rafe depart, Alison admits to Jamal how much of a strain she's been under since his old flame sauntered back into town. Momentarily distracted by a passing child, Lucy loses sight of Kevin and the other woman. Ian confides to Eve how desperate he felt when he thought he would never see her again. Though Rafe advises her not to jump to conclusions about Kevin, Lucy sadly assumes that the man she loves is cheating on her. Dr. Hartman flies in from Chicago with an urgent message for Hope's biological parents.
Kicking himself for succumbing to his feelings for Alison, Rafe fears he's screwing up his entire mission. Dr. Hartman asks Val and Jamal to return to Chicago with him so they can be tested as possible organ donors for an ailing Hope. As they prepare for their first Christmas in their new home, Jack and Livvie decide to throw a dinner party for family and friends. Talking about how they happened to reconnect, both Livvie and Jack are surprised to realize that Rafe was the common denominator in their blissful reunion. At GH, Chris' sudden penchant for telling the truth continues to cause big trouble for him. Rafe confides to Livvie how he's having trouble concentrating on anything except Alison. Kevin's repeated fabrications tempt Lucy towards a confrontation but she elects to again follow him instead. When Rafe admits how inexperienced he is in love, Livvie urges him not to mistake Alison's natural ebullience for anything deeper. Feeling sorry for his brother after he gets fired from the hospital, Jack invites Chris to stay with him for a while.
While Livvie helps Alison wrap gifts, they discuss Alison's feelings for Rafe. When Livvie admits that she knows Rafe's secret, Alison is relieved that finally she can talk to someone who will understand. Livvie also shares with Alison that Rafe told her about the kiss between them. Alison is unsure of her feelings for Rafe, but Livvie explains that Alison is only drawn to him because he is an angel, then warns Alison to remember that Rafe is not real. Alison can't help feeling sad that Rafe can't experience life or love, he can only watch from the outside. For this reason, Alison can't bring herself to say goodbye to Rafe. She has decided to leave town to avoid him. Livvie tries to talk Alison out of this plan. She told Alison that she will regret it if she doesn't see Rafe his last day on earth.
At the hospital, Frank, Karen, Ian, and Eve exchange gifts while talking about their Christmas plans. Eve and Karen believe they must be on the same wavelength when they give each other identical sweaters. After the exchange, they discuss Chris getting fired and wonder who will be the next chief resident. Eve thinks she has a good chance at the job, as Alan Quartermaine wants to see her at the end of the day.
Next, the couples exchange gifts with each other. Frank gives Karen a snowglobe, while she surprises him with a copy of H.G. Wells book "Time Machine". Ian hands Eve a small box. When she opens it, Eve is stunned to find a beautiful diamond bracelet that must have cost a fortune. Ian opens his gift to find an equally impressive gift: a first edition volume of Yeats. They wonder if perhaps they didn't go a little overboard on their gifts. Chris comes into the room; takes one look at Eve's bracelet then asks Ian, "Why are you trying to impress her? You already got the girl!"
Lucy is frantically trying to orchestrate preparations for her Christmas party while Rafe tries to get her to tell him the real reason she is acting like a crazy woman. Finally, Lucy breaks down and told him about seeing Kevin go to the mystery woman's hotel room, and how she is afraid Kevin has fallen for someone else. Rafe is skeptical. He told Lucy she has no proof Kevin is doing anything wrong. Rafe assures Lucy that if she has faith, a miracle could happen that night that will bring them back together. Lucy is certain there is no miracle big enough to accomplish this and told Rafe he knows diddly about love.
Lucy receives a phone call from Scott saying they have other plans. Neither Scott nor Serena will be attending the party. Soon after, Kevin calls to tell Lucy he is on his way to help her with the party preparations. He hangs up, but inadvertently hits the speaker button so that Lucy can overhear his conversation with the mystery woman. Lucy hears Kevin say, "Lucy is getting suspicious. I need to tell her about us now." Lucy hangs up the phone totally devastated by what she has heard.
Kevin makes his way downstairs where he runs into Rafe. He asks Rafe how Lucy is doing. Rafe seems optimistic. He told Kevin Lucy went out for a breather, but she will be back soon. Next, we see Lucy on board a plane, ready to celebrate the holidays in Hawaii.
As his deadline fast approaches, Rafe wishes he could make all the sundered hearts in town realize just how lucky they are to have found someone to love. Alison checks in by phone with Jamal as he, Gabi and Val anxiously await the results of their tests. With the hour for the party almost at hand, Don nearly lets the cat out of the bag to a puzzled Kevin. Hurt by Kevin's apparent betrayal, Lucy impulsively boards a flight for Hawaii. Alison told Rafe she's leaving for Chicago but wanted to thank him first for being such a special part of her life. Later, Alison tearfully bids the angel goodbye. Dr. Hartman informs Gabi that she is a tissue match for Hope. Stormy weather cancels Alison's plans to fly to the Windy City. Serena decides to surprise Lucy by showing up unexpectedly at her holiday bash. Meanwhile, Lucy is baffled to discover herself suddenly headed back to Port Charles instead of Honolulu.
As the holiday gala gets underway, Rafe inscribes the last entry in his private journal. Jack watches in alarm as his truth-telling brother makes a beeline for Port Charles' police commissioner. After winding up back in town, Lucy tries to go home but a heaven-sent cab driver brought her straight to the hotel instead. Alison calls Jamal to regretfully explain why she won't be able to spend Christmas with him after all. Lucy finally arrives at her own party but studiously avoids Kevin's repeated attempts to pull her aside for a private chat. Jack finally manages to steer Chris away from Mac, while a giggling Livvie promises her boyfriend that the "curse" on his big brother will soon be lifted. Surprised to find a familiar looking pair of wedding rings in his jacket pocket, Kevin wonders if the universe if trying to tell him something. Lucy is cheered by some encouraging words from Serena. Alison coaxes Rafe out onto the dance floor. Kevin corners Lucy at last and pops the question in front of all their guests. Though Lucy angrily accuses him of seeing another woman, Kevin asks her to trust in his love and accept his marriage proposal.