Chuck tells the audience (in a breach of the fourth wall) what occurred in the previous two episodes. Including, but not limited to, his kiss with Sarah, Bryce's "return" from the dead, and Chuck and Bryce's reconciliation.
At the Buy More, we see Lester and Jeff engaging in some sort of gambling game involving a dreydl. Lester wins, to the dismay of everyone watching, as they all bet on Jeff to win.
Meanwhile, Chuck is checking the Wienerlicious to see for a sign of Sarah. Casey walks over to share some snide remarks. Chuck inquires to him as to where Sarah is. Casey tells him that Sarah and he do not talk off hours.
Next, Morgan walks over to tell him that he thinks that Anna is cheating on him. Morgan explains that he was hiding in the bushes and saw her get dropped off. Chuck claims that it is probably nothing.
Lester and Jeff inform Chuck of an installation job, and that he has to come, as Jeff cannot be trusted to be by himself during the holidays. Morgan asks if Chuck can stay, so he can have Chuck's moral support. Never the less, Chuck goes.
The scene shifts to Sarah, who is still in bed. It is obvious she has had a rather rough night. When her alarm clock goes off, she loses her temper and stabs it with a knife.
At the marina, all is going well with the installation job. However, Jeff impulsively goes to the lower level of the boat, to the protest of Lester, Chuck, and the security guards. They all see two men counting piles of money. The security guard explains that the money is from the boat's owner's recent AIDS fund raiser. While Jeff and Lester are distracted by two beautiful women who have just walked in, Chuck picks up one of the dollar bills being counted. Suddenly, he has a flash, and the dollar bill is revealed to be counterfeit.
Chuck and Casey inform General Beckman and CIA Director Graham of this immediately, with Sarah arriving late for the briefing. She reveals that Lawn Kirk, the owner of the boat previously mentioned, devotes most of his time to charity work. However, they are suspicious, as he has had contact with Eastern criminals, and they have intel that a major counterfeiter is in the area. They tell Chuck, Casey, and Sarah to investigate a charity event that Kirk will be hosting, but tread cautiously.
After the briefing, Chuck runs up to Sarah and asks why she stayed. She replies that she has a job to do, and she is committed to it.
Back at the Buy More, "Big Mike" goes over the rules for the upcoming Holiday Party. He tells Jeff that he cannot spike the eggnog, or cop a feel on any of the female workers.
Anna goes looking for Morgan, and eventually finds him. Seeing that he is upset, she asks what is wrong. He tells her that he saw her getting dropped off. She explains that her parents are in town for a charity event being hosted. Morgan requests that he meet Anna's parents.
Morgan quickly realizes his mistake, and goes to Chuck for help. Chuck tells him to just be himself. Lester and Jeff disagree, and tell Morgan that he must be a completely different person in order to impress Anna's parents.
The scene shifts to Chuck standing outside Sarah's apartment, and then walking in. Sarah prompts him on the mission, and Chuck confirms the objectives. The two share a rather awkward conversation and then proceed to the gala.
As Chuck and Sarah enter the gala, Chuck asks Sarah how much money he has to gamble with. Sarah replies that he has "100". They then spot Kirk and walk over to the table at which he is playing. Chuck then finds that Casey is posing as the dealer. After Kirk introduces himself, and being rather flirtatious with Sarah, he puts a wager up. Unfortunately, Chuck bets all of his money on one chance. Casey asks him to reconsider, but Chuck refuses. However, Chuck quickly realizes that Sarah mean $100,000 instead of just $100. It too late though, and Chuck loses all of his money. Kirk then leaves the table, winking at Sarah, with Sarah winking back. Sarah and Casey chastise Chuck for making such a foolish decision, with Chuck criticizing Sarah for winking at Kirk.
Chuck quickly spots Kirk going over to talk to an unidentified Asian man. Suddenly, Chuck has a flash, and finds that the man is Rashan Chen, the Taiwanese attaché who is using the charity event to launder counterfeit money. Sarah strides over to Kirk to attempt to expel information from him. Chuck has a growing feel of unease with Sarah's flirting with Kirk.
As Sarah is about to drop Chuck off at his home, Chuck asks Sarah what Kirk told Sarah. She replies that Kirk invited her, and her only, to his yacht. Chuck says this is rather disrespectful to her boyfriend. Sarah interprets this to mean Bryce Larkin, responding that Bryce is not her boyfriend and even if he was he would understand. Chuck tells her that he actually mean Charles Carmichael (Chuck's cover/alias). Chuck gets out, and Sarah drives away.
Chuck walks out of his house to empty the trash, only to find Casey polishing his car. Chuck inquires as to why Casey is doing this. Casey replies that the Crown Victoria is his dream car, and he keeps it in spotless condition at all times. Moving on, Chuck asks Casey what exactly Sarah's mission is aboard Kirk's yacht. Casey vaguely answers that she is there to "gather information from Kirk, using whatever it takes." and then "I hear Agent Walker can be quite the giver." Chuck is shown to very nervous at this response.
The scene shifts to Morgan, who has just arrived at the restaurant where he is meeting Anna's parents. At first, he behaves like he always does. Then, realizing Anna's parents are apprehensive of him, he starts to pretend like he is an upper blueblood. Still, Anna's parents are not impressed. Suddenly, Morgan spots Kirk talking to Sarah on his boat. Immediately, he calls Chuck and expresses his concern that the blonde woman his looking at is Sarah. Although Chuck knows Sarah is there, he tells Morgan that he will look into it.
The scene switches to Casey, who is watching Sarah along with other agents. Hearing footsteps behind him, Casey springs around in attack mode. The person is Chuck, who has come to bring Casey lunch. However, Chuck soon unwittingly reveals why he is there, to spy on Sarah. In an instant, Chuck flashes on some crates being loaded onto Kirk's boat. He tells Casey that they are currency printing plates being disguised as AIDS medicines. Casey asks Chuck if he is sure what they are, and Chuck confirms it. Casey and the other agents raid the boat, and ask Kirk to open the crate. Outraged, Kirk never the less opens the crates. The contents are revealed to be indeed medicines for Taiwan. Kirk then asks for the names of Casey's superiors, so the proper people are held responsible.
Back at his house, Chuck hears the door bell ring. Sarah walks in, and lashes out at Chuck that he let his emotions interfere with work, and he faked the flash. Chuck expresses his disdain that Sarah has been so cold to him since Bryce came back. Sarah, furious, storms out of the house.
Back at the Buy More, Morgan has returned from his lunch with Anna's parents. Morgan promptly asks Chuck if the woman he saw was Sarah. Chuck lies and replies that it was not her. Morgan goes on to invite Chuck to a boat trip he will be attending with Anna and her parents. Chuck declines, as he has had a long day.
Meanwhile, Sarah and Casey are being chastised by Director Graham and General Beckman for being to rash in raiding Kirk's boat. Casey defends his actions, and says that the decision was based on the information he received from the Intersect (Chuck). Their superiors are still furious, and they are benched from the mission. Casey is quite angry with Sarah, and gives her one last chance to come clean and admit that she compromised herself "in the Intersect". Sarah starts to get emotional, and asks Casey if he has ever wanted a normal life and a family. Casey affirms that the decision they made to protect their country is always the right choice. Sarah realizes this, as says she will go to Chuck, and if she cannot fix it, she will ask for a reassignment.
Back at the Buy More, Chuck is thumbing through pictures of him and Sarah (In a similar fashion to Sarah in the Pilot). He then receives a picture from Morgan, who is currently with Anna and her parents. Chuck suddenly spots Rashan and the crates he flashed on earlier in the background of the photo. Quickly, he blows up the photo and heads straight to Casey. Casey tells him that orders are orders, and they cannot resume the mission. Chuck proceeds to Sarah, and tries to convince her to come with him to save Morgan and Anna. Sarah immediately agrees, and they head down to the docks.
At the docks, Sarah and Chuck are rushing to the boat when they spot Casey. Casey tells them that he came to protect the Intersect, and he didn't want to miss any "gun play". The team spot Morgan, and they rush to the scene. Chuck flashes on a device attached to the boat, and it is revealed to be a missile GPS tracking device. Casey realizes that, now that Kirk has his money, he is going to bury the evidence of his crime. Casey says he will get the guards, while Sarah and Chuck will create a diversion.
Sarah runs up to Kirk, who is about to fire the rocket. She pretends that she desperately wants to talk to him. Chuck runs in, pretending to be an outraged boyfriend. As they are enacting this ploy, Casey barges in and starts the fight. The fight ends when Kirk fires the rocket launcher and escapes. Chuck grabs the GPS control and resets the software that directed the missile. Casey makes Chuck realize that reset means return to sender. In order to direct the missile somewhere else, Chuck needs another set of GPS coordinates. He realizes that Casey knows the GPS coordinates for the Crown Vic. Reluctantly, Casey gives him the coordinates, and the Crown Vic is destroyed. Casey is extremely dismayed.
The team heads back to the Buy More, where Chuck is standing alone, depressed. Sarah walks up to him, and tells him that she wants to be friends with him again. He agrees.
Casey receives a call from General Beckman, who informs him that Intersect 2.0 will be up and running soon. Beckman asks Casey if he has been compromised. Ominously, Casey confirms that he will carry out his orders.