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 boutique. 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. Samantha, Kelly, Jackie, Andrea, David, Mel, Donna, Dylan and Steve all show up at the Walsh house for dinner and caroling. The old man gives everyone presents and describes his lonely life; his children are grown and his wife died a year earlier. He thanks Brenda for her kindness and generosity and then mysteriously disappears as footsteps are heard on the roof.