Katherine and Murphy brought home a scraggly Christmas tree, and Murphy mentioned that it was the first time he had decorated a tree since his wife Betty died. While Murphy and Katherine affixed shiny ornaments onto each bough, Katherine experienced a brief and hazy memory of Esther, in uniform, decorating a grand tree at the Chancellor mansion. Katherine shared her memory with Murphy, but she concluded that the image was likely just a recollection of something she had viewed on television. Katherine and Murphy munched sugar cookies and sipped eggnog.
To celebrate the season, Katherine offered to propose a holiday toast with their non-alcoholic beverages. Murphy found humor in Katherine's formality and teased that she might have been a duchess in a former life. The word "duchess" struck Katherine, and she wondered why the term sounded familiar. Murphy raised his glass and thanked Katherine for making his Christmas the best he had enjoyed in many years. Murphy explained that he truly enjoyed "Marge's" company since she had become sober. A group of carolers serenaded the couple. Murphy and Katherine served refreshments to the singers, and they gave the couple a sprig of mistletoe. Murphy suspended the mistletoe from an overhead light fixture, and then he gently kissed Katherine on the lips. Katherine embraced Murphy as they admired their festive tree.
At Crimson Lights, Lily engaged in a texted tête-à-tête with her secret boyfriend, Sonny. Billy arrived and approached Lily's table. Lily told Billy that she had agreed to meet Sonny Crawford for the first time. Lily worried that it might not be a great idea to meet face-to-face with a man she had met online through a dating service. Billy pointed out that meeting prospective dates online made better sense than waiting around to pick up a guy at a bar. Lily and Billy shared a laugh when Lily swiped part of Billy's pastry and stuffed it into her mouth. Lily was pleased when Billy pledged to donate a significant amount of money to the Feed America program, which provided fresh vegetables and fruits to people in need.
Billy, as Sonny, covertly invited Lily, via text message, to meet him at a local bookstore on Christmas Eve. Billy nearly revealed his alter ego prematurely when he accidentally dropped his phone into Lily's view after he returned to their table with coffee refills. Lily told Billy that she and Sonny had agreed to meet at a bookstore. Lily added that although she could not offer an explanation, she felt a connection to her mysterious online friend. Lily again had second thoughts about meeting her friend, but Billy allayed her fears and convinced Lily to go ahead with her plans. After Lily left, Billy sighed in relief because he knew he had convinced her to meet him at the bookstore.
Inside a Genoa City courtroom, attorney Rafael Torres defended Adam during his arraignment hearing on fraud, conspiracy, and obstruction of justice charges. Rafael insisted that the state's key witness was an untrustworthy felon. Heather told the judge that new witnesses from Mexico would offer testimony that would substantiate the state's charges and prove that the defendant was guilty. Adam pleaded not guilty, but the judge remanded Adam into the state's custody after Heather pointed out that the defendant was about to leave the country when he was initially arrested. Heather glared at Adam as the bailiff cuffed him. Adam remained stoic.
Before the bailiff escorted Adam to jail, Rafael mentioned the threat posed by the prosecution's new witnesses. Adam offered to provide evidence of Jack's involvement with Victor's forged diary. Outside the courtroom, Dennis congratulated Heather. Heather vowed to put Adam behind bars, and insisted that she had severed ties with her former fiancé. Adam encountered Heather in the hallway, and she accused him of using and deceiving her. Adam accused Heather of prosecuting him in order to advance her career. Heather sadly noted that she would not send Adam to prison for breaking her heart. Instead, Heather pointed out, she would send Adam away for breaking the law. Adam warned Heather that he would not forget what she had done. Paul, standing nearby, offered Heather words of comfort, and he told his daughter that he admired her strength and courage. Later, in her suite, Heather held Adam's lovingly wrapped Christmas gift. Heather sobbed and crawled into her bed to cry. Alone in his jail cell, a formerly stoic Adam broke down and cried.
At the Genoa City jail, Nikki arrived with papers for Victor to sign. Nikki explained that the documents proved he was not dead and would allow them to transfer funds into trusts for Victoria and Nick before year's end. Victor noted that a common link to their progeny would always bind him and Nikki. Nikki showed off photos of Summer's recent birthday party, and the estranged couple shared fond memories as they reminisced. Nikki anticipated Victor's release from jail after Adam's arrest for his part in forging the diary. Nikki said, "Whatever happened in Mexico between you and Walter Palin, you would never be foolish enough to write it down." Victor recoiled and vigorously defended himself. Victor added, "You know nothing about Mexico, and you will never know."
Nikki told Victor that she was not judging him, but she claimed that Victor had to have a reason to follow Walter to Mexico. Victor angrily ordered Nikki to leave. Nikki insisted she had earnestly tried to help Victor. Victor became angry and said, "I don't need your damn help! I don't now and never did. You got it?" Nikki became frustrated and said, "When will I ever learn?" Nikki noted that she and Paul brought the Mexican bartender and his daughter to Genoa City to defend Victor. In frustration, Nikki concluded that she was repeating the same fruitless attempts and hoping for different outcomes. Victor continued to yell. Nikki told Victor she was finished with him and sarcastically wished him a merry Christmas before she banged on the cell door to alert the guard. Victor reminded Nikki that his and Sabrina's baby had been due on Christmas day, and he told Nikki that she could never wash the blood from her hands.
After Nikki departed, the jail guard escorted the Mexican bartender and his young daughter into the visitation area to see Victor. The young girl embraced Victor and told him the visit was her first to America. Victor assured the girl that she could keep Sabrina's earring, which the youngster wore on a chain around her neck. After the girl's father gave her some paper and crayons, she seated herself at a nearby table. The bartender told Victor that he somehow knew that two men who came to Mexico seeking information about Victor weren't his friends. Victor thanked the man and acknowledged that the two men were definitely not his friends.
Victor seemed stunned when the bartender assured him that he had kept Victor's secret. The man laughed and added, "What happens in Mexico stays in Mexico." Victor thanked the man again after he expressed hope that he could help free Victor from jail. The man noted that many had questioned him, including federal authorities, about Victor, the fishing boat, and the storm. Victor looked his foreign friend directly in the eye, rapped his knuckles on the table, and concluded, "Justice will be done!"
The little girl presented Victor with a crayon drawing of him and her enjoying the Mexican sunshine together. Victor noted that he looked sad in the drawing. Victor hugged the girl and thanked her for the sketch. As the bailiff escorted Adam to his cell, he spied the bartender and his young daughter laughing and talking with Victor. Adam seemed deflated as the bailiff nudged him along.
Nikki drank coffee with Paul at Crimson Lights after her distressing visit with Victor. Paul told Nikki that the judge denied Adam's bail and that Heather, although distraught, was handling the matter well. Paul felt that Victor would surely be pleased with the court proceedings, but Nikki said she didn't care if Victor was pleased or not. Nikki admitted that she had seen Victor, and explained that the visit had not gone well. Paul noted that although Nikki claimed she no longer cared about Victor, his ability to stir immense emotional responses proved that she did care. Paul asked Nikki if she believed that Victor killed Walter Palin. Nikki admitted that she understood why Victor would have wanted to kill the man. Paul said they might never truly know, but at least the Mexican bartender would prove that Jack and Adam were involved in the scheme to forge Victor's diary. Paul added that he found no evidence that tied Victor to Palin's murder. Nikki concluded that they should let the matter go.
Paul acknowledged that Nikki and Victor would always share a connection, but Paul asked where he and Nikki stood with their relationship. Nikki smiled and assured Paul that she wanted to be where she was, and she embraced him. Paul encouraged Nikki to forget about Victor and just enjoy Christmas with him.