Kay made sure that Miguel was preoccupied with her and the baby so that he couldn't spend any time at all with Charity. Miguel wanted to do the right thing and struggled with paying Kay's and the baby's medical bills. Meanwhile, Jessica and Kay gave Grace the cold shoulder and told her they didn't want her around. Ivy made matters worse when she demanded Grace give back the key to the Bennett house.
Julian told Eve he loved her -- always had, always would. However, Julian knew that he had to be with Rebecca to protect Eve. Touched, Eve told Julian that she was concerned about what he was giving up for her. She admitted that she loved him every bit as much as he loved her.
Gwen and Sheridan bonded from their common experience of losing a child. They tried to console each other but were consumed with grief. Meanwhile, Antonio and Luis went at each other over Sheridan. Antonio accused Luis of betraying him by stealing his wife.
Back in her old bedroom in Harmony, Whitney sheepishly admitted to Eve how foolish she felt about trusting Chad. Simone arrived and blasted her sister, then shocked Eve by wishing aloud that Whitney hadn't survived the shooting. Little Ethan inadvertently created an awkward situation for his namesake by begging Ethan to play with him and his mom.
Pilar tried to forge a truce between her embattled sons, but Antonio refused to forgive and forget. A vengeful Gwen bitterly informed Sheridan that she wouldn't rest until she had made Theresa pay for causing her baby's death. Despite his pledge to cut Theresa out of his life, Ethan couldn't resist spending time with her and her son as he felt the void left by Sarah's tragic demise.
Fox guessed the real reason his father was wedding Rebecca. Eve nearly let her own secret pain show as she encouraged Whitney to remain true to her feelings. Luis and Antonio both vowed to have Sheridan for their very own. Rebecca advised Julian to stop moping about Eve and give Rebecca a chance to make him happy instead. Eve admitted to an intrigued Whitney that she had loved another man before she met T.C. Sheridan told Gwen she was still torn between the two Lopez-Fitzgerald men in her life.
Liz got under Eve's skin when she tormented her sister about being in love with Julian and never being able to have him. Meanwhile, T.C. planned a surprise for his family and told Fox he was welcome to be part of it. Rebecca sickened Julian by planning an elaborate wedding for them that would make all of Harmony sit up and take notice.
Kay reached out to Tabitha, hoping Tabitha could devise a plan to help Kay get Miguel back into her life. Kay feared that Miguel and Charity would always be together. Meanwhile, Miguel and Charity were trying to tune out the rest of the world and enjoy the Christmas season. An angel came to life in the Bennett house.
Gwen became furious when she found out that Theresa actually had her wedding ring. She wondered how Ethan had let Theresa get her hands on that. Gwen was so upset that she told Ethan she never wanted to see him again -- it was over between them. Jessica was upset about her family troubles until Reese returned to town and lifted her spirits.
Tabitha enjoyed needling Charity about Miguel's permanent bond with Kay. Sam and Ivy bumped into Grace at the skating rink as she posed for a family photo with David and a beaming John.
Kneeling beside the tiny casket, Gwen had a vision of her daughter at age eight and imagined a joyous Christmas with Sarah and Ethan, then she pictured their happy family through the years as the girl grew to adulthood.
Though Theresa eagerly assumed that Ethan was returning to her, he abruptly set her straight by declaring that their relationship was at an end. Miguel promised Kay he'd share the workload with her in caring for their infant daughter. Ivy warned Grace she had no intention of losing Sam ever again.
Rebecca ordered Julian to help carry out her plan of revenge. Kay exulted when Miguel canceled plans with a disappointed Charity in order to spend more time with little Maria. Ivy renewed a blackmail threat to keep Eve in line. Theresa pleaded with Ethan to reconsider, but he bade her farewell.
Luis was duped into believing that the baby belonged to Beth. He knew he should spend quality time with Beth and his son, but he didn't want to leave Sheridan alone. Sheridan told Luis that it was the right thing to do and urged him to go to Beth. Luis reluctantly agreed, but his heart wasn't in it.
Eve reached out to her friend, Sheridan, and said she was there if Sheridan needed her. Meanwhile, Liz and Antonio complained to each other about how their siblings had betrayed them. Theresa and Whitney discussed their lost loves and which one of them should go after Fox. Fox admitted that he was hopelessly in love with Whitney.
Charity got through to Gwen and softened her position on Ethan. She said maybe there was a way they could reconcile what had happened in the past and have a future together. Ethan promised that Theresa was out of their lives and he'd be devoted to her. Rebecca pressed Julian to fight for custody of his child with Theresa. Rebecca wanted to leave her with nothing.