Christmas is ringing in Schooner Bay, bringing that special "spirit" in everyone.
Claymore discovers a baby in his car and brings the small boy to the Muir home, trying to decide what to do with the tot. Carolyn eagerly takes care of the baby thrilled with the cradle the Captain brings down out of the attic for him to sleep in. While Carolyn and Captain Gregg watch the baby fall asleep, Carolyn asks the Captain what his best Christmas had been. To which he replies, that his best Christmas could never be, because it is only a dream.
As each family member falls asleep, they each share the same dream. The time is set in the 1800's and Captain Gregg is alive just returning from sea to spend Christmas with his loved ones. Each dream becomes specialized according to the person --Jonathan dreaming of toys, Candy of the beauty of Christmas and Claymore getting a good haunting ala Charles Dickens 'A Christmas Carol.'
Carolyn's dream takes a different turn as well, with a special time alone on the porch with Captain Gregg. They talk quietly with one another, the love they have for one another shining on their faces. When Carolyn remarks that everything is so wonderful and it seems unreal, the Captain lovingly replies that perhaps it is because it is only a moment in a dream. As the music starts around them, the two realize their deepest wish when they are finally able to share a kiss. The dream fades as we see them standing on the porch, Carolyn held securely in her Captain's arms.
In the morning they all discover they had the same dream, to which the Captain tells them he had nothing else to give them for Christmas and he hopes they enjoyed it. A phone call comes telling the family, the baby's mother has been found making it a very Merry Christmas for all.moreless