Carly came home looking for Rosanna, who was upstairs and in bed with Craig. Guilt-ridden Ro freaked out because she's lying to her sister. She and Craig continued to discuss the best way to tell Carly and decided they'd get everyone together and announce it to the family the following day. Later, Carly approached her sis about the sexy lingerie and wondered who she's sleeping with; Ro covered and said she bought the negligee for Carly, who pointed out how stunned she is that Ro has made amends with her one-time foe Craig and kept the house and the kids in order while she was gone. Ro was uncomfortable when Carly talked about going to seduce Craig. She called him when Carly left the room and demanded that he fess up immediately. He and Carly made plans to see each other.

Luke met Noah and a very drunk Mason celebrating the movie shoot. He tried to catch up with Noah but Mason interjected; Luke wasn't happy with Mason's overbearing attitude and felt left out. Noah told him he has nothing to worry about.

Officer Grady told Meg he wants to talk to Jack about the DNA evidence before leaving town but she persuaded him Jack's too wrapped up in his own drama to care at the moment. She assured Grady that his visit to Oakdale and the news he shared with her would not be in vain. After, she went to Fashions and bought a sexy new dress.

Holden and Lily returned to face the judge. Lily was overcome with emotion as Holden explained to the judge that he's ready to move on. She confirmed that it's also what she wants and the judge annulled their marriage. After, she asked him why he kissed her yesterday; Damain watched from afar and stepped in when he saw how upset Lily had become. The men traded barbs and Holden stormed out.

Holden ran into Luke, told him that he's no longer married to Lily and pointed out how complicated love can be. He encouraged Luke to make things work with Noah. Meanwhile, Meg strolled in wearing her new outfit in an attempt to bait Damian behind Lily's back. When he refused to bite, she smirked and brought up the DNA evidence and that she knows the truth. Damian silently panicked but pleaded his case. She threatened to tell Lily, knowing that she'd end their marriage right away. They kissed and then Lily knocked on the door. He claimed he was on a call and she left. So did Meg, who knew she had Damian right where she wanted him.

Luke returned to a screening of the film and was miffed when he saw a clip of Mason kissing Noah. He confronted Mason about it; Noah assured him that Mason is harmless and promised that their collaboration would be over as soon as Mason gives him a grade for the movie.

Carly went to Craig's wearing nothing but lingerie and tried to seduce him but he pulled away and said they have to talk. Then Rosanna showed up unexpectedly and was stunned to see Carly there. She made an excuse about why she had arrived; Craig tried to shoo her out the door. Carly's suspicions were raised but she assumed Craig was just starting to resent her so she apologized. He changed the subject and made an excuse about needing to leave. She kissed him and left. Ro returned immediately; Craig admitted he didn't tell Carly. They embraced just as Carly barged in. "When exactly where you going to tell me you were sleeping with my sister!" she spat at Craig.