Just as things between Beverly Ann and Oliver are progressing. Her ex-husband Frank shows up. He starts to tell her something which she at first thinks is his desire to reconcile but he has a heart attack. At the hospital she learns what he was trying to tell her is that someone wants to buy their old house and that he has remarried.
Blair starts law school. She spends a lot of time with her law professor. While the two of them are in his office talking, his wife comes in and assumes that they're "together". So word gets around about Blair and her professor. She considers dropping out.
Natalie's been given an assignment to do an article on the ROTC. Natalie gets close to a cadet. Later when they get a new drill sergeant, they learn that they're going sky diving which makes Natalie nervous. She has to decide if she wants to stick with it or drop out when the cadet she got close to will.
With Tootie's boyfriend, Jeff, away she gets asked by another guy to go out on a date. At first, she doesn't want to because it might seem she's stepping out on Jeff. But Blair convinces her to. And on the night they're suppose to go out, Jeff shows up. And Natalie's boyfriend, Snake finally shows up.
Everybody has their own plans for Christmas and Beverly Ann feels unappreciated. During a visit with Santa, she tells him she wishes she'd never come to Peekskill. He shows her what it would have been like without her.