Blair's father, Harold, comes home for the holidays with an unexpected guest. Blair cannot hide her disappointment and makes a plan to get rid of Roman forever. Jenny and Vanessa help Serena get the best Christmas present ever for Dan, who has a surprise of his own for Serena. Rufus refuses to remain the understanding husband any longer after Alison's former lover sends a letter to the house.

Serena's world descends into chaos when a former friend, the evil Georgina Sparks returns to town. Nate connects with the last person he expected, Vanessa. Blair hatches a plan to sabotage her biggest rival, Nelly Yuki. Meanwhile Serena goes out with Georgina, but things get so bad that Serena thinks someone spiked her non-alcoholic drink. Jenny develops a crush on a dog-walker, Asher Hornsby, who might be her ticket to permanent popularity.

Blair is over the moon that she is dating royalty and has every intention of becoming a royal herself, but a scheming Chuck has other plans for Blair and her new love, Marcus, when he introduces Blair to Marcus' stepmother who happens to be Catherine. Meanwhile, Nate learns the downside to having an affair with Catherine when he keeps getting caught in his lies and learns his family has gone bankrupt due to his father jumping bail.

Serena invites Aaron to a charity event, but soon uncovers a secret Aaron has been keeping from her. Thinking it will help her get into Yale, Blair agrees to babysit the 15-year-old daughter of a Yale donor, but her plan quickly backfires. Meanwhile, Jenny and Agnes plan a fashion show.