Everyone at the 4077 is so cranky, cold and bored, BJ decides the only way to uplift spirits is to "borrow" Hawkeye's birthday. Hawkeye is not amused. Captain Anthony Borelli (Robert Alda) visits the 4077 to lecture about peripheral nerve grafting to replace entire segments of skin. Borelli has always really annoyed Hawkeye. When the surgeon is injured at the Battalion Aid Station, Hawkeye rushes to volunteer for duty, just to avoid Borelli. But Borelli insists on accompanying him--so Hawkeye "borrows" BJ's wedding anniversary to substitute for his birthday. After ...
Pierce is upset by the fact that civilian doctors are making a lot of money off the war, and decides to bill the army for all his work. Meanwhile, Winchester is reluctantly showing 3 Korean doctors American medical techniques, putting them down all the while, until he is on the receiving end of their expertise.
En route to R&R, Hawkeye is flagged down by a North Korean soldier who holds him at gun point, forcing him to treat his wounded comrade. Back in camp, the officers change partners in a bridge tournament.
To fight an ongoing infection in the O.R., the staff decides to remove the old wood floor and make a concrete one. The surgeons do the menial labor while Klinger acts as foreman (he knows cement and it's not that hard); while an Italian soldier falls head-over-heels for Margaret.
While local orphans attend a Christmas party in the mess tent, Hawkeye, B.J., and Margaret try to save the life of a critically injured solider so that his family won't think of Christmas as the day that their father died.
As the year 1950 comes to a close, the 4077th staff and surgeons hope 1951 is "a damn sight better" and hopefully they'll be going home. The year 1951 is not uneventful: Klinger makes a bet on a baseball team Charles is sure will lose, Hawkeye and B.J. build a kidney machine, Margaret knits a scarf which soon becomes a bed sheet, and Father Mulcahy plants a garden. By the time New Year's Eve rolls around again, they all hope 1952 will be "a damn sight better" and that they will be returning home.