Christmas Eve is bittersweet in Port Charles.
Kate is in New York, but sad that she is not with Sonny. Sonny misses her but keeps a stiff upper lip. Skye visits Luke in the hospital just before his surgery, but Tracy throws her out. Alan, her conscience, appears and reads the Nativity story to her and tells her that Christmas is about family. Dillon surprises her by staying in Port Charles and offers his shoulder to cry on, which she accepts. Bobby, Lucky and Lulu also show up and Luke is wheeled into surgery. Luke has another out-of-body experience during the operation. He walks through fog until he comes to a gate. Upon entering, he finds a pianist playing a Sinatra tune and a drink sitting on the piano, which he downs. He walks over to a microphone and does a touching rendition of "My Way."
At Mac's house Felecia tries to tell Maxie how much she loves her, but Maxie is still bitter. Mac comes in and tells her that he has invited Felicia for Christmas, and that they all need each other.
Carly, Jax and the boys are very happy and enjoying the fun of Christmas. As they are preparing to leave for the hospital Christmas party, Carly faints. Jax asks if she is pregnant, but she says, "No, it's a touch of the flu." Jax and the boys leave. She stays home. Sonny drops by with Christmas presents for Michael and Morgan. Carly senses that something is wrong. She asks if Kate has left him. Before he can answer her, Jax and the boys come home. They give Sonny his presents and have a sweet time together. He leaves, but not before telling them that they should spend Christmas with their mother, instead of him, because she is ill. A short time later Jason arrives with presents. Carly comments on his hair cut. Jason is touched by the present he receives from the boys. It is a photograph of them with Liz.
Sonny goes back to his lonely house, hoping for a message from Kate. Max tells him that no message has been left, because Kate, who had called earlier, asked him not to tell Sonny that she called. At the same time Kate arrives in her New York hotel room after attending an A-list party. She hopes for a message from Sonny, but when she calls the front desk there is none.
Still under the influence of anesthesia, Luke continues his dream where he concludes that the real value in life is family, not money. He regrets that he did not spend more time with his family, but overall, he is satisfied with the life he has led.
In a montage, with a voiceover by Anthony Geary singing, "I'll Be Home For Christmas," Luke walks through a set of gates into the fog. Luke's family comforts each other in the hospital waiting room. Carly, Jax, Michael and Morgan are a typically happy family. Maxie hands Felicia a present addressed to her from Georgie. Jason looks in from the outside as Liz and her sons hang stockings. Sonny goes upstairs alone and Kate is also alone in her hotel room.