At the Abbott house, Jack admires the Christmas tree with a drink as Kyle comes down the stairs and strikes up a conversation. Kyle suggests they finish their earlier discussion over a drink.
At Society, Ashley and Traci are talking about Christmas when Diane arrives. Ashley groans, and Traci encourages her to be nice. Diane approaches and asks if they can start fresh. She apologizes for the deception she and Jack carried out and the pain it caused. Traci acknowledges that Jack is getting back to himself and ready to move forward. Diane asks if Ashley can do the same. Ashley admits she can keep things civil and work toward moving forward, but it will take time. They also discuss Kyle and Diane’s efforts to earn his forgiveness. Diane offers to buy them a drink. The conversation turns to Alan and Traci, and Diane proposes a toast to overcoming challenges. Diane eventually leaves.
At Sharon’s home, Phyllis continues her tirade. Sharon denies killing Heather and reveals new information, but Phyllis insists she confessed and accuses Sharon of manipulating the truth. As Tessa, Faith, Mariah, and Nick look on, Nick tries to intervene, but Phyllis persists. Sharon, having had enough, tells Phyllis she is upsetting her family and accuses her of taking pleasure in attacking her. Sharon declares that the truth will come out and tells Phyllis to leave. Phyllis continues her accusations until Faith steps in to defend her mother and her innocence. Phyllis argues that Daniel is suffering while Sharon’s family makes excuses, accusing Sharon of manipulating the justice system before finally leaving.
Afterward, Faith remarks that Phyllis won’t let things go. Nick explains that Phyllis is lashing out because of Lucy and Heather’s pain. Sharon expresses her love for her daughters and says they’ll enjoy the holidays despite the drama. Tessa sings, and the family joins in with carols, savoring the moment together. As snow begins to fall, the girls head outside to enjoy it, leaving Nick and Sharon to share a private moment, wishing each other a Merry Christmas.
Back at the Abbott house, Jack reflects on past Christmases with his family. He shares how he once resented those memories because of his mother’s absence but now finds joy in them. Jack regrets not spending more time with his mother and recalls how quickly his father passed away. Jack and Kyle discuss cherishing the moments, especially with Harrison, and touch on Diane’s challenges. Jack urges Kyle not to waste time with his mother, Diane, as he once did with his own.
Diane returns home and mentions that her meeting with Traci and Ashley went well. She says she cleared out her former office and asks Kyle to open his gift early. Diane gives Kyle a meaningful present symbolizing his role as co-CEO, along with journal notes from her Christmas entries during the years they were apart. Kyle is touched by the gift and leaves to meet Claire.
Alone with Jack, Diane asks if things went well. Jack believes they did. The two exchange early Christmas gifts. Diane receives a necklace that belonged to Jack’s mother, passed down from his father, symbolizing his trust and affection.
Meanwhile, Phyllis visits Daniel to vent about Sharon, complaining that she missed Christmas Eve because of her. Daniel is frustrated, noting that Phyllis made things dark when Lucy wanted joy. Phyllis tells Daniel about Sharon denying Heather’s murder. Daniel is upset, questioning Sharon’s change in stance and wondering about the unidentified third party involved. Phyllis insists Sharon is lying, while Daniel points out that there must be a reason others believe her now. Phyllis becomes increasingly upset.
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