In the week before Christmas, an administrator asks Kelly to give a speech praising Dr. Monahan, which leaves her in a dilemma, knowing his true nature. Meanwhile, Donna reacts to Noah's lack of Christmas spirit due to his history. Carly's son, Zack, questions the existence of Santa Claus, and Steve sets out to prove that he's real, with a little help from Nat. At David's urging, a depressed Ben delivers gifts to his parents, and later he and Valerie help out a suicidal Ben. Emma refuses to back off from flirting with Brandon, and gives him a valuable watch as a Christmas present; he finally gives into her charms and has sex with her.

David gets caught in the middle of a conflict when the band keyboardist, Mark, blames Noah for his drunk-driving accident and decides to sue. Meanwhile, Donna starts a new photo shoot and deals with a spoiled child model and her demanding mother who spells trouble for her. Steve inadvertently prompts a former frat brother's fiancée, Christy, to call off the wedding. Christy then stays at the Walsh house where she gives Brandon advice on life and love, while her perplexed fiancé, Harry, gives some love life advice to Steve regarding the departed Carly. Kelly counsels a teenage girl who contracted a sexually transmitted disease after cheating on her boyfriend. Valerie, still working community service at the clinic, continues her plan to keep Brandon and Kelly apart, setting up a scene at a restaurant so that Brandon will walk into Kelly with her date Jeff.