After Angela blackmails Nick with incriminating information about his past, Nick surrenders Falcon Crest to Angela. While Angela makes plans to rebuild the house, Nick regrets his deference to her and warns that he will not bend in the future. Nick decides to tell Ben the truth about his mother, which enrages the young man. Richard's newspaper prints the fact that Melissa had placed a phone call after Lance's departure, proving that Lance is innocent of her death. Richard warns Pilar not to let her affair with Lance interfere with Richard's takeover of the valley. When Frank's old friend Libby appears, Nick and Ben are surprised. Libby requests Frank to join her in Columbia to mine emeralds, which is an offer that disturbs Angela. As Emma and Cabot begin an intimate relationship, Cabot questions her true identity.

As Christmas arrives in Tuscany Valley, Frank agonizes over whether or not to leave his family to mine emeralds with Libby. Ben turns against Nick for lying to him about his mother. Unaware of Richard's assistance, Maggie is delighted with the overwhelming response to her special advertising offer. Richard offers to back Pilar's failing consortium through a blind company for a controlling interest. When Daniel Cabot discovers Emma's true identity, he abandons her. Although Angela celebrates the holiday by surrounding herself with family, Pilar's holiday is spoiled when she spots her brothers Tommy and Paco being chased by security officers. However, Christmas dinner at Pilar's home brings Nick and Ben closer together and Nick to admit his love for his father.