Kris Kringle gives happy dreams to Victoria, Sophia, C.C., and to Julia and Mason. Upon waking, Mason and Julia leave the cabin to return to Santa Barbara, where they learn that charges against Kris were raised. Julia drives Chip to see Victoria for Christmas. Ted surprises his parents by coming back from Los Angeles to spend December 25th with them. He invites Hayley, Laken, T.J., Jake and Lionel to start singing a traditional song for Sophia and C.C.. T.J. is contacted by Olivia who asks him to come to see her and to comfort her, with her husband having left her. In Hawaii, Cruz accepts a call from Richard. He decides to explain the situation to Eden. After a walk on the beach, he announces to Eden that he decided to accept the dangerous mission which they want to entrust him with. Mason comes to find C.C. and both make peace for the day. Kris says goodbye to Julia and leaves the home by the fireplace... Kris Kringle will reappear in the series as from episode 1061, Olivia Welles as from episode 942.
—Johnny Quick