Meanwhile, the frantic Tanners search the nearby woods with kerosene lanterns for any sign of ALF.
George Foley, the generous man who played Santa at the hospital, and who rented the cabin to the Tanners, is summoned to fix the elevator. As he's working on it, Denise begins to give birth in front of a panicked ALF. As Denise's husband races up the stairwell, he hears the first cries of his infant daughter. Since "Gordon" doesn't work well as a girl's name, ALF suggests Denise name the baby "Tiffany." Denise agrees that it's a beautiful name.
ALF finally gets back into the toy pile in the lobby and is transported into George Foley's car. In the backseat, he hears over the radio that weather conditions are worsening, and is excited that it's beginning to snow. ALF is surprised when George stops the car on a bridge and gets out. Two weeks earlier, George lost his beloved wife, Margaret, and has been going through the motions of living. As George grabs hold of the pilings and steps up on the hand rail of the massive bridge, ALF gets out of the car and tries to reason with him. George can't see ALF too well in the dark, and tells whoever it is to leave him alone. ALF says that he knows that George lost his wife, and that it feels as though he's lost his whole world. ALF tells him he can relate. He also tells George that his work is not yet finished, and to look around at all the wonderful things he's done for others, including a dying little girl. George listens, and asks ALF who he is and how he knows all this stuff. ALF persuades him to believe that he is an apparition of St. Nick. He also tells George that he's going to recruit Willie Tanner next, and to please drive him to the cabin. George agrees.
At the cabin, George watches as ALF climbs on top of the roof and prepares to jump down the chimney. Knocking some snow down to extinguish the fire, he says, "here goes" and jumps into the chimney. He lands – headfirst and stuck – in the fireplace, staring upside down at the Tanners…who are very glad to see him. ALF simply says, "Merry Christmas."