At Cane and Chloe's house, Jill and Esther arrived to exchange Christmas gifts. Billy showed up, too, but Cane was not thrilled to see his brother. Chloe winced when Billy waltzed in. Chloe gave members of her family hand-knit scarves as gifts. Cane doted on his pregnant wife. Billy gave Chloe's unborn daughter a silkscreen onesie emblazoned with the slogan "I love New York." A crimson heart substituted for the word "love." Chloe secretly recalled the sunny day on a New York City street when she first met Billy, who acted overly flirtatious as he delivered a cheesy pick-up line. Jill gave both her sons framed photos of them posing with their grandmother. Jill made her sons pledge not to bicker with their mother as she had with hers. As their celebration wound down, Jill prepared to head home. Esther decided to spend the night at Cane and Chloe's house. Before Jill left, she kissed Cane on the cheek and said that her mother had been right to insist that family came first.
Cane hung a personalized stocking from the mantle for "Baby Girl Ashby." Esther shrieked with joy when she felt her granddaughter kicking inside Chloe's womb. Cane teased that he would teach his daughter to play rugby. Cane stepped away, and Esther vowed to spend every Christmas with her granddaughter. Chloe said sarcastically, "Like you did with me?" Esther began to cry and apologized to Chloe. Chloe accepted her mother's heartfelt apology, and they hugged.
At Crimson Lights, Lily and Colleen collected money for a charity. Devon and Roxanne arrived. Roxanne quizzed Lily about her mystery man, but Colleen whisked Lily away and insisted that her friend would not divulge any details. Colleen later grilled Lily about her anonymous friend. Devon was surprised, but Colleen smiled after Lily finally announced that Billy Abbott was her secret beau. Rafe walked in and Colleen immediately spotted him and declared that he was a "hottie." Lily greeted Rafe, who took obvious notice of a blushing Colleen. After Rafe stepped away, Lily told Colleen that Rafe was a public defender who was aiding Neil with Ana's custody proceedings. Lily worried that Colleen might not approve of her relationship with Billy, but Colleen gave Lily her blessing. Lily admitted that she and Billy had shared a romantic kiss. Billy arrived on cue immediately after Lily grilled Colleen about rumors that Billy might be a "player."
Colleen told Billy that Lily had exposed their covert relationship. Colleen warned Billy not to hurt her friend. Lily was beyond earshot of the conversation, and she flashed a love-struck grin at Billy from across the room. Lily explained to Billy that she wasn't completely over Cane, but she admitted that her online relationship with "Sonny" had motivated her to move on. Lily introduced Colleen to Rafe, and Devon noted that Rafe had successfully arranged for Ana to spend Christmas with her family.
Sharon phoned Jack and asked him to come to the Abbott mansion to receive his gift. When Jack arrived, Sharon explained that she planned to move out of the mansion, so Jack could move home. Sharon explained that she had booked a suite at the Genoa City Athletic Club, so she and Noah could move out. Jack was saddened that Sharon had chosen to abandon their marriage. Sharon said that it was time for her to leave the Abbott homestead, so Jack could return where he belonged. Before Sharon left, she embraced Jack, who sadly noted that his gift to her was a shopping spree with a renowned interior designer, so she could complete the redecorating project she had begun at the Abbott mansion.
At Murphy's mobile home, Katherine sipped coffee and continued to remember snippets of her past. Murphy sat down beside Katherine and produced a printed copy of an obituary. Murphy insisted that his friend "Marge" could not be Katherine Chancellor because that person was deceased, although he admitted that his friend remarkably resembled the woman pictured in the obituary. Katherine said that she had experienced numerous memories she couldn't explain. Katherine added that she could not have purchased the expensive ring she had owned with her wages as a waitress, a job that seemed foreign to her. Murphy insisted that a patron at the café had told "Marge" that she greatly resembled Katherine Chancellor, which had confused her, since she had only recently recovered from alcoholism. Katherine realized that Murphy had discovered her on the riverbank about the same time the obituary noted the purported death of Katherine Chancellor.
Murphy refused to believe Katherine's theory and suggested that "Marge" was going off the deep end. Murphy told Katherine that if Marge had had a rich friend like Katherine Chancellor, she would have "shouted it out to the world." Katherine continued gazing at her obituary and insisted that her speculations felt right. Katherine begged Murphy to accompany her to the Chancellor mansion in hopes that she might stir more memories. Katherine added that if she was indeed Katherine Chancellor then she had a family who grieved her loss because they mistakenly believed she was dead. Murphy reluctantly agreed to accompany Katherine.
At the Chancellor estate, Murphy wasn't impressed that Katherine had correctly guessed the security code that opened the gates into the Chancellor grounds, since it was the same as the birth date listed for Katherine in her obituary. Murphy marveled at the vast size of the estate as he rang the doorbell. Murphy attempted to leave when no one answered, but Katherine found a key behind a planter. Murphy worried about being charged with breaking and entering, but Katherine insisted that she was about to enter her own property as they unlocked the door and stepped inside. Katherine gazed at a photo of Jill and recalled harsh words they had exchanged long ago. With tears in her eyes, Katherine insisted that the home was hers and that the woman in the photo was Jill. Murphy refused to believe his friend, but Katherine sobbed as she anticipated a joyous reconciliation with her family.
Katherine invited Murphy to wait with her, but Murphy was uneasy. Katherine begged Murphy to stay, but he insisted that he and Mrs. Chancellor ran in different circles. After Murphy left, Katherine sat on her sofa, drank in her surroundings, and celebrated her miraculous Christmas homecoming. Jill returned and berated an absent Esther's inattentiveness for forgetting to lock the front door. Jill failed to notice Katherine's coat crumpled on a chair as she neared the sitting-room bar to pour herself a drink. Through the reflection of a wall mirror above the bar, Jill suddenly noticed a figure standing behind her. Jill dropped her glass and whirled around in shock. Jill fell against the bar and shrieked, "Mother!" Katherine, dressed in a pale blue sweater, grinned matter-of-factly at her dazed daughter.
At the gaily-decorated tack house, Nikki joined Nick, Phyllis, and Summer for Christmas revelry. Victoria, J.T., Reed, and Noah arrived and joined the family's festivities. Nikki insisted that Victor would show up after Noah expressed concern that their family was not complete without his grandpa. Nikki seemed jovial, and Victoria supposed that living with Paul might be good for her mother. Nikki agreed and added that Paul would spend Christmas with Heather. During a moment alone together, Nick gave Phyllis a diamond-encrusted bracelet. Phyllis proclaimed that her gift was perfect. Nick assured Phyllis that she was perfect. After Nick expressed his desire for their relationship "to be okay again," Phyllis said she had almost forgotten about what happened in Paris. Phyllis gave Nick a satellite-guided navigation device, so he could always "find his way back home from wherever he roamed," she added. The couple shared a passionate kiss.
At the Newman ranch, Victor gazed at a drawing of Sabrina and an ultrasound image of their unborn baby. Victor seemed saddened as he reflected on his losses. Ashley appeared from the kitchen and greeted Victor with mugs of hot chocolate. Victor's somber mood lightened. Victor told Ashley that Sabrina's baby had been due on Christmas Day. Ashley and Victor kissed, but Ashley opted not to accompany Victor to the tack house to visit his children and grandchildren. Before Victor arrived at the tack house, Nikki opted to take a walk around the ranch. Nikki stepped out of the door just as Victor arrived, trailing Zapato along on his leash. Nikki and Victor briefly and awkwardly greeted one another before Nikki hurried along. Victor stepped inside, greeted his family with hugs, and sipped eggnog as they toasted the season and their love for one another.
Victor cooed at baby Reed. Tears welled in Victoria's eyes when she acknowledged that she had been thinking about Sabrina. Victor added that his and Sabrina's baby would have been born on Christmas, and he urged Victoria to cherish each day with her family. Victor thanked Nick and Victoria for looking after the company during his absence. Noah approached Phyllis and told her that he and his mother were moving to the club. While Victor enjoyed spending time with his grandchildren, Nikki visited the barn and offered carrot sticks to her horse. Nikki confided to her horse that she no longer cared if Victor was mad at her. Victor and Zapato walked into the barn. Victor noted that he had not known that Nikki was there. Nikki told Victor she was glad he was out of jail. Victor said only that Ashley was waiting for him in the bedroom at the ranch, and he turned to leave. After Victor led Zapato away, Nikki seemed deeply hurt by Victor's cool rebuff.
Nikki returned to the tack house and told Nick that she had seen Victor in the barn. As a gift from her family, Nikki received a triptych-style frame with photos of Noah, Summer, and Reed. Victor returned to the ranch house. Ashley readied champagne and four champagne flutes. Ashley explained that two of the glasses represented him and her. One glass represented Sabrina, who would always remain part of Victor's life. Victor smiled tenderly when Ashley directed his attention to the drawing of Sabrina that Ashley had framed and hung on the wall. After Victor asked about the fourth glass, Ashley summoned Abby, who had grown into a lovely teenage girl with long, silky, blonde hair. Abby greeted Victor, and he marveled that she had grown so much. Ashley mentioned that Abby would sip cider from her glass. Victor embraced Ashley and Abby and joyously exclaimed, "My goodness. My Christmas present is this."