Angelus kills Daniel, a man who owes him money in a poker game. It is Christmas.
Angel wakes up from his flashback dream. It's Christmas and he runs into Buffy who is out Christmas shopping. He sees Daniel on the street, but Buffy doesn't see anything.
Buffy discusses Christmas holiday plans with Xander and Willow. Willow reminds them she's Jewish, Xander will be camping out to avoid his family and Buffy just wants a quiet holiday. Oz walks up and Willow and he go to discuss what happened in "Lover's Walk." Oz says he misses her and would be willing to give their relationship another shot.
Buffy and Joyce go out shopping for a Christmas tree. Joyce says it would be nice to invite Faith for the holidays. Buffy isn't keen on the idea, but agrees to ask. Buffy says it would be good to invite Giles, but her mom quickly rejects the idea, saying he wouldn't want to be around a bunch of girls. Buffy sees a pile of dead trees and a guy who works there says they just up and died.
Buffy goes to Faith's hotel room and invites her to dinner. Faith says she already has plans.
Angel goes to Giles' and asks him for his help. Giles invites him in, but only after getting his crossbow. Angel explains to Giles that he keeps having dreams about his past. He wants to know why he is back in Sunnydale and not in the demon dimension. As Giles bends over to put down his crossbow, Angel sees Jenny standing beside Giles and runs out.
Another flashback begins, this time of Angelus attacking a servant girl. In the flashback, he looks up and sees Buffy. Angel startles awake, at the same time Buffy also wakes up from her dream.
Jenny comes back and begins to talk to Angel. He says he's sorry for what he did to her, but she says he should feel sorry for himself. Jenny then transforms into Daniel, then into others from his past. They call him a demon and tell him to accept his destiny.
Buffy goes to Giles to tell him she was in Angel's dream and something's wrong. Giles says he knows and explains he had come to him for help. Xander walks in and offers his help in figuring out what is going on. Willow arrives and they all begin to research what has been happening.
Buffy falls asleep, as does Angel at his house. They dream of making love, and then Angel bites her neck. In the background, a man with no eyes watches. Angel wakes up to Jenny telling him to take Buffy and go back to being Angelus.
Giles finds information about The First Evil. Buffy recognizes the men with no eyes in the book. They are known as the Bringers, high priests who can summon the First. She and Xander go to Willy, who tells them they might be underground.
Oz goes to Willow's, who has set the mood with candles and Barry White playing in the background. Oz tells her he's not ready to move to that point in their relationship.
Joyce and Buffy are getting the Christmas decorations set up when Faith unexpectedly arrives. Buffy goes upstairs to get gifts and Angel is there. Jenny appears to Angel, urging him to take Buffy. Angel jumps out the bedroom window. Buffy leaves Faith to protect her mom and goes to Giles for help.
While reading through books, Buffy finds a line that says nothing shall grow above or below where the Bringers are – she remembers the dead Christmas trees and breaks through to find the Bringers. Jenny then appears, but is really the First. Jenny says by sunrise, Angel will be dead, and then disappears.
Buffy goes to search for Angel, and finally finds him waiting for the sunrise, intent on killing himself. Buffy tries to explain the First was manipulating him, but he says that part of him wanted to do what it wanted from him. Buffy tells him that she loves him, though, despite everything he has done. It begins to snow for the first time in Sunnydale history. Buffy and Angel go walking hand in hand through the snow covered city.