The Forresters gathered in Eric and Stephanie's for a family Christmas. Brooke joined a solemn Ridge in the living room. Ridge put his arm around Brooke. "Come, let's join the group," he said. Steffy and Thomas arrived and reported that Taylor was still "struggling." "I think your mother needs to be here tonight," Stephanie said as Ridge listened closely. Rick showed up. "You shouldn't be here," Steffy barked. Bridget defended her brother and confirmed Rick's version of the accident. "She was attacking him. That was what made the car crash," Bridget told a wide-eyed Steffy. Stephanie confronted Eric about allowing Rick in their home. "Rick is a member of this family and that's final," Eric said. "You son-of-a-bitch," Stephanie sneered at Rick.

Brooke, Kate and Donna wondered how Taylor would get through the holidays. Donna informed Marcus that after the holidays Eric would tell Stephanie that he and Donna have reconciled. Donna couldn't wait. Nick returned with Jack, dressed as a tiny Santa. They had delivered gifts to the hospital. Donna told Katie that she thinks Nick finally met the right match. Katie smiled. Nick, Jack and Katie all kissed under the mistletoe.

Rick wept by Phoebe's grave. "Doesn't feel much like Christmas, Phoebe," he cried. Taylor walked up behind him. "It should have been me," he sobbed. "It's all my fault.” Taylor replied, “I could think of a million reasons to blame myself.” Taylor and Rick talked. Ridge put his hand on Taylor's shoulder. Taylor didn't want to join the Forresters. Ridge tried to convince his ex that Phoebe was with the family watching them celebrate. "Come with me," he said as he took Taylor's hand. Outside of the house, Taylor had second thoughts, but soon joined the family in singing Christmas carols, accompanied by Eric on the piano.

Taylor was touched by the star Hope had made for Phoebe. The Forresters gazed up at the tree and thought of Phoebe.