At The Crane House, Ivy and Julian are discussing Martin Fitzgerald. Ivy wonders if he is really dead or if he has something on the Cranes that is making Julian and his father afraid. Ivy wants to know if the man in New Mexico was really Martin. Julian tells her that they better pray that he never shows up in Harmony. Julian and Ivy discuss the Tree Lighting Ceremony. Julian is very disinterested, but Ivy feels that it is important for Ethan's political career that they get to know the people of Harmony. After the tree lighting ceremony, Ivy will be having her dinner party. Julian can't understand why Ivy invited the Bennetts. He wonders what kind of boring dish Grace will bring to this dinner. Julian says that he might ask Sam to dig into Ivy's past. Ivy tells him that there is nothing in her past that he doesn't already know.
Martin Fitzgerald is lurking outside the Lopez-Fitzgerald house. He says that everyone will be surprised to see him, especially Julian. Pilar and Luis are in the kitchen. Pilar lights a candle for Martin and Antonio to keep them safe and for them to return home one day. Luis said that Pilar probably wouldn't recognize Martin. Pilar said that she would always recognize her husband. Luis tells her that she doesn't know Martin, just like she doesn't really know Sheridan. He tells Pilar how Sheridan pretended to be happy when he gave her the compact, but he later found it in the trash. He said that she was just a spoiled debutante. He said that Sheridan acted differently when they were in New Mexico, but he should have known that she was just like her family. Pilar tells him that Sheridan is nothing like Julian or Alistar. Luis said that he would be there for Hank when Sheridan dumped him.
Sheridan and Hank are at the tree lighting ceremony. He tells Sheridan that his family really likes her. He said that the girls were probably wondering when they would be getting married. Sheridan said that she is not planning on marrying anyone for a long time. She says again how glad she is that she found the compact that Luis gave her.
Grace is telling the girls how wonderful it would be if Santa picked Charity to light the Christmas Tree. She said that Charity had been through a lot this year, losing her mother. Kay, Simone, and Jessica all say that they would be very happy if Charity were picked. Kay tells Simone that she knows that Santa will pick her and she will pick Miguel. Charity and Miguel are at the Book Cafe eating chestnuts. Miguel says that it reminds him of his father roasting chestnuts when he was little. He said that if his father were to return, it would be a wonderful Christmas for his mother, but that it would be horrible for Luis.
Tabitha is dressed as Santa Claus. Timmy is dressed as one of her elves. Tabitha is going to pick Charity to light the tree, and she knows that Charity will pick Miguel to help her. Timmy is supposed to manipulate the switch, and when they light the tree, Miguel and Charity will die. Timmy said that they were nice kids, and he didn't want them to die. Tabitha says that she doesn't really want them to die, but there is just no other way. It has to happen tonight.
Gwen and Ethan encounter Theresa and Whitney at the ceremony. Gwen asks Theresa where her boyfriend is. Before Theresa can answer, Whitney said that Theresa had some things to check on for the ceremony. Gwen said that they would be waiting. Gwen tells Ethan that Theresa doesn't really have a boyfriend. She said that the only boy that Theresa was interested in was him. Ethan doesn't really believe her. Gwen says that once he finds out that Theresa is interested in him, she will accept his proposal because she will really believe that he is sincere. Whitney tells Theresa that she should just tell Gwen and Ethan the truth. Before Theresa can go on with her story to Gwen and Ethan, they are interrupted by Santa (Tabitha).
After Pilar and Luis leave, Martin enters the house. He places a call to Julian, but a housekeeper answers the phone and tells him that the Cranes attended the Tree Lighting Ceremony. Martin decides to attend the ceremony, himself. He is not sure where it is held, but decides to follow the music.
Julian and Ivy arrive at the ceremony. Ivy spots Sam and says to herself that she has a surprise for Sam. TC and Sam also see Ivy and Julian, but Sam quickly turns away from Ivy. Pilar and Luis also arrive and spot Hank and Sheridan. Hank tells Sheridan that she should get in line so that Santa will pick her to light the Christmas tree, and then she could pick him. She tells him that she won't get in line for him or Luis. Hank leaves to get some hot cider. Sheridan sees Luis and thanks him again for the compact. She said that it really came in handy. Luis asks her if she got some sick pleasure thinking that she could play him for a chump. He tells her that he knows what she thought of the compact. He tells her that whatever rich girl game that she is playing, it's not working. Sheridan looks stunned as Luis walks away. Sheridan catches up with Luis, and wants to know what he meant by what he said. He said that he just wanted her to know that he really knew what she thought about the compact. Sheridan shows him the compact and he is surprised that she still has it. Neither one of them sees Martin lurking nearby.
All the young ladies of Harmony are gathered around waiting to see who Santa picks. Gwen says that Ethan wanted her in line because he thinks that she is the prettiest girl there. Gwen tells Theresa that it won't be long before the truth about her boyfriend comes out. Santa is looking at all the young ladies, and it looks like he is about to pick Kay.
Santa (Tabitha ) ends up picking Charity, instead. Everyone applauds for Charity. Charity picks Miguel to help her light the tree. Julian notices that Santa and his helper are leaving instead of having their picture taken with the winner. Gwen tells Theresa that since the contest was over and that there was no chance for her to be interrupted again, she wanted to know about Theresa's boyfriend. Gwen asked her if her boyfriend were there. Theresa said that he was. Gwen told Theresa to just go over and tap her boyfriend on the shoulder. Tabitha and Timmy are making their getaway. Timmy said that they are nice kids. Tabitha said that she is sorry that it took so long to get rid of them. Everyone is counting down until it is time for Charity and Miguel to pull the switch.
Pleasantly surprised when Sheridan produces the compact, Luis realizes he may have misjudged her yet again. As Julian grumbles about having to mingle with the rabble, Ivy advises her husband to force a smile onto his face and fake some holiday spirit until the tree lighting ceremony is over. Gwen demands that Theresa point out the man of her dreams. Tabitha grinds her teeth in frustration when Charity interrupts the countdown to thank her new friends and family members for all the love they've shown her. Meanwhile, the real Santa comes to and discovers he's late for the ceremony in the park. Hank confides to Pilar how much he hopes to woo and win Sheridan. Martin averts his face when Luis and Sheridan offer to help him extricate his foot from a grate. Timmy wails along with the other citizens of Harmony as their Christmas tree suddenly bursts into flames and an electric shock knocks Charity and Miguel to the ground. Later, Tabitha slips a special potion into her guest's next hot toddy to ensure that Santa will recall nothing about their meeting when he's questioned by the authorities. Miguel and Charity emerge from their ordeal completely unscathed.
Julian is upset to spot Martin on the streets of Harmony. Tabitha faints dead away when she finds the "late" Miguel and Charity at her front door. Sam and T.C. listen skeptically to the drunken Santa's story about a weird little elf and some strange woman luring him away from the park. After coming to, Tabitha feigns joy at her young visitors' miraculous escape from certain death. Ivy refuses to let Grace off the hook when Sam's wife hesitates at accepting an invitation to the Cranes' holiday party. Luis watches Hank kissing Sheridan under the mistletoe. Eve hides from Grace the real reason she tries to avoid the Cranes like the plague. Kay is humiliated when Reese accidentally spills glitter all over her dress just as Miguel walks in with her rival. Sam finally confides to T.C. the details of his youthful romance with Ivy. Sheridan laughs off Hank's suggestion that she's beginning to fall for Luis. After Charity decides to decorate her neighbor's house as a surprise, Kay reluctantly chips in the money she was going to use to buy a new outfit. Meanwhile, Tabitha exercises her nasty streak by robbing a blind woman on the street corner.
Over dinner, Ethan tells a thrilled Gwen they can get on with their wedding plans because he now knows she was right about Theresa. Charity recalls for Miguel how her mother used to love angels. Julian is appalled to spot Martin skulking outside the window. At the Book Cafe, Chad says bah humbug to the holiday spirit and tells Whitney the only Christmas gift he wants is for Orville to regain his memory. Ivy gleefully informs a bristling Grace that he only kissed Sam because she caught him standing under the mistletoe. The little angel urges Tabitha to come into the light and save her soul. Out of his wife's earshot, Sam furiously hisses at Ivy never to pull such a stunt again. Kay's face falls when Miguel gives Charity the romantic gift she was hoping to receive. Martin demands more money from Julian. Though Timmy hopes for a Christmas miracle, Tabitha stubbornly rejects the angel's offer of redemption. Hiding nearby, Theresa watches Ethan open her "anonymous" gift. The little angel promises a dazzled Timmy that his heavenly reward will always be waiting for him when he's ready to leave Tabitha and her evil ways behind. Eve is agitated to see Chad sitting with her daughters at midnight mass.