Nelle is already making her presence felt in the change of office atmosphere when Fish dumps another groundless case on Georgia. Ling Woo, the unpleasant plant manager, is back to sue a nurse in her sister's plastic surgeon's office for misrepresentation of results from breast implant surgery. Georgia would love to drop the case but can't. She confronts Nelle for dumping it on her anyway, but Nelle justifies the reassignment by saying she and Ling are friends and would end up hating each other as a result of the lawsuit. Cage reflects on Ally's progress with a mediation case between Fish's minister and a jilted choir singer. Nelle moves on to Cage and confronts him about his resistance to the notion of a potential interoffice romance.

Cage and Fish's firm gets a capital case to defend a man accused of murdering his comatose wife. He insists he fired up the chainsaw and cut off her hand after she was dead. Renee, who is prosecuting, has the testimony of the coroner who thinks the wife was alive and that the amateur surgery gave her a heart attack. Meanwhile, Billy and Georgia continue to patch up their marriage after Billy's indiscretion with Ally. Both of them are working on a case in which they are representing a man suing to get his job back with an insurance company who fired him over a bad hair day.

Ally's heart is broken and not by Billy or Greg. It's just one big stress fracture. She's come to the realization that there isn't anyone out there for her. She has her image of the perfect man, but is beginning to believe that he does not exist. Surprisingly, a pep talk from Fish leads Ally to become more proactive about her love life. Working on the, "you have to kiss a lot of frogs before finding Prince Charming theory", Ally decides to go on a dating frenzy. She also decides to go for a total hair and fashion makeover. Nelle is starting to become annoyed with John Cage because he seems to be the only one in the firm who understands Ally's imaginary love life. Nelle is worried that John and Ally feed off each other and now that she and John are a couple, she would really prefer her man to face life head on.

Ally is plagued with hallucinations of Al Green. She talks about these hallucinations with Dr. Shirley Flott, who is seeing patients while Dr. Tracy is away. Shirley has no patience for Ally's daydreams and wants desperately to put her on Prozac. Wrestling with the idea of going on medication leads Ally to question what is so wrong about hallucinations: they bring her comfort and keep her in perspective? Meanwhile, Nelle and John defend a boy suspended for impulsively kissing one of the most beautiful girls in his class. During all this, Billy has had a series of "off the book" appointments and refuses to tell anyone, including Georgia, where he's going.

Risa, the bride whose wedding Ally destroyed, decides to sue Ally for intentional infliction of emotional distress; Georgia expresses outrage when Billy hires a sexy twenty-year-old as his new assistant; Ling tells Fish that she has been faking in bed.

Elaine finds a real, live six-week-old baby in a nativity scene manger and wants to keep him. Cage and Ally represent Elaine in her fight to gain custody, while the rest of the office (full of child-less lawyers) become enchanted with the baby. Even Ling considers having children. Billy attempts to reconcile with Georgia. In preparation for the Christmas party, Elaine convinces Ally to sing a sexy song but Richard and Billy have their reservations.

The Christmas season is approaching, and while Ally is thrilled about it, Larry has nothing to celebrate. He confesses to her that he has a 7 year-old son who lives in Detroit with his mother, and ever since they split Larry finds Christmas sad and lonely. Meanwhile, Kimmie insists that John sings at the bar after he lies about his college band, and he doesn't do as bad as everyone thought he would. Elaine is lonely and performs at the bar to regain self esteem. Mark asks her out on a date. John and Ling handle a case about a news anchor who was fired for saying on TV that there's no Santa.

Melanie takes John to her tiny apartment (actually it's an old service elevator) and introduces him to Mr. Bo, a homeless man Melanie cares deeply for. Mr. Bo starts to stalk John around and he files a complaint against him. After Melanie convinces him to drop the charges, she reveals that Mr. Bo is in fact her father and John will have to wrestle him in order to go on seeing her. Meanwhile, Richard organizes a twist contest at the bar and while Elaine freaks with the possibility of losing to the babe lawyers, Nelle only enters the contest after Ling introduces her to a very hot twist instructor. And Ally takes a case of a woman who fired her secretary because she was slightly overweight and is shocked when she discovers that Cage & Fish only hire hot female lawyers.