Michael and Hope are negotiating over Christmas/Hanukkah celebrations. Mike starts watching TV and sees himself in an old black & white TV sitcom, with the Westons interrupting his plans to be with Hope. The next day at work, Elliot tells Mike he seems distracted. Michael gets a phone call--Hope has been in an accident with Janey. Rushing to the hospital, he finds Janey unhurt and Hope looking tired with some contusions on her face, but otherwise apparently OK.
Mike watches the TV show again, this time with Santa in it. He drives Melissa to the synagogue and she encourages him to come on Friday. Michael returns home with a tree and finds Hope getting ill in the bathroom. He tells her to go to the doctor about the dizzy spells she's been having. Another flash to the TV show: Hope is missing on a wintry night. Ethan doesn't believe it's Santa, but he becomes convinced when Santa knows he wants his parents to get back together. Santa asks Mike what he wants. Later, feeling guilty about being a non-practicing Jew, Michael goes to the synagogue, but doesn't go to the temple service. He sees the rabbi there--he looks just like Santa from the TV show! Mike returns home to find Hope sitting on the kitchen floor, saying she's scared.
Hope goes to the hospital again, where the doctor says she seems fine, but he'll run some tests. Mike returns home alone. He watches the TV show again. On it, he tells Elliot that Santa isn't a phony, but the real thing. The Westons give each other gifts and are reconciled. Mike asks Santa about his missing wife; he says she'll never come back home. Back to reality, Hope happily comes through the door with Janey. A worried Michael is upset and in tears. Hope laughs and tells him her medical problem--she's pregnant. Melissa arrives and hears the good news. Michael goes back to the synagogue to talk with the rabbi, but instead of the older man (Santa) he saw before, it's a younger man! Before leaving, Michael dons a yarmulke and goes to temple.