Steve arrives in Albuquerque and tracks down his grandfather, a diner owner. Al explains that his daughter gave up Steve because she was very young and wanted him to have a good home. He sadly reveals that Karen died in a car accident. Steve leaves flowers at her grave, and convinces an eccentric Santa-like charter pilot to fly him home for Christmas. Cindy is depressed about her first Christmas in Beverly Hills. She invites the kids' friends and their families for Christmas Eve dinner, but everyone has other plans. Brandon visits Emily in a psychiatric hospital, where she is doing very well. Brenda begins work at an upscale clothing store. She feels bad when her boss throws out a cheerful old man dressed as Santa Claus. She stops the police from harassing him and invites him over for dinner. Dylan goes to see his father in prison, and talks with the same Santa. Jackie is furious when Mel backs out of Christmas Eve plans because his estranged wife asked him to come over with David. Sam

Jim coaches a hockey team that includes Brandon, Steve and Dylan. After a practice, Brandon meets aspiring figure skater Trisha Kinney. They take a liking to each other, and Brandon gets up at 5:00 every morning to come to her practices. Trisha considers giving up the sport after a poor showing in her sectional meet. Her coach shows up during her date with Brandon and announces that she was given an exemption to compete at nationals. She bars Brandon from practice because he was affecting her concentration. Brenda's boss, Deidre, encourages her to become a more persuasive salesperson. Brenda convinces David to buy Donna $190 perfume as a belated birthday present (her birthday was Christmas day). Deidre steals a large commission from Brenda, but Cindy helps Brenda plot revenge.

Music: ""(I've Had) The Time of My Life"" by Bill Medley and Jennifer Warnes (#1, 1987)