Kevin argues with Michael, Jack and Phyllis shed tears, and Victor and Nikki exchange gifts.
Nick and Avery giggle in her bed. They talk about making gingerbread men and snowman pancakes. Nick goes to the kitchen and spots a dog tag with the name 'Dylan McAvoy'. He hides it before Avery appears.
At the Abbott house, Jack tells Phyllis he's glad she's there. He gifts her with an ornament that was his grandmother's on his father's side. She feels awkward. He says she's family and notes her loyalty, kindness, and patience. Jack puts on music and they dance. They reflect back on being married, but then Phyllis regrets bringing it up. Jack's just glad they remained close. They kiss. Phyllis decides it wasn't a good idea - neither of them is ready for this. She tearfully says goodbye. Jack wipes away tears too, and pours a drink.
At Adam's place, Sharon tells him about being with Noah and Faith. She asks about Chelsea. Adam says he's steering clear as per her wishes. Sharon says he shouldn't walk away from something good due to old feelings. He says they're not old - and there's a connection between them - they both know it. Sharon sighs that they've tried before and it didn't work - it won't work now. She thinks he's a better man with Chelsea - he should go back to her. She kisses him and leaves. Adam dozes off and dreams of Christmas morning with a son and Chelsea.
Fen is about to leave the house when Lauren texts his untraceable phone. Michael asks what he's doing with it. Fen rants about them not trusting him. Michael wants an answer. He says he got it to text Summer without them knowing - it's not fair that they don't want him to see her. Later, Fen leaves as Kevin and Chloe arrive. Paul is there and an argument about money breaks out between Kevin and Michael. Chloe and Kevin leave.
In the penthouse on Christmas Eve, Nikki gives Victor his refurbished bible he thought was lost in the fire.
At Crimson Lights, Chloe tells Kevin the fighting is stressing her out. Kevin says his low point was having to explain to Delia about Santa today. He asks Chloe to take the handcuffs off him so he can find a way out of this mess. She tells him, "Do what you have to do."
Sharon greets Noah, Faith, Summer, and Nick at the tackhouse Christmas morning. Summer leaves to meet Phyllis. Faith opens a gift and Sharon thanks Nick for including her. They talk about Sharon wanting a job.
Kyle arrives home Christmas morning to find Jack passed out on the sofa and the decanter empty. Jack rouses himself and gifts Kyle with a week in Maui. Kyle says all he wants is for him to get sober. He talks about a friend who flunked out of Yale and was buying pills from Kieran Donnelly his hockey pal. Later, Jack calls his doctor friend, but he won't give him pills. When Kyle goes to pack for a trip to Aspen, Jack looks for Kieran's number on his phone.
Summer arrives at Avery's place and gifts her with cookie cutters. Avery tells her to wish Phyllis a Merry Christmas. Summer invites her along.
Adam runs into Chelsea at Crimson Lights on Christmas Day. He invites her to dinner, but she declines. He kisses her cheek and goes. Summer arrives to meet Phyllis with Avery in tow. Phyllis isn't thrilled. Avery and Phyllis bicker about Nick. Phyllis says Nick and Summer will be hurt by perfect Aunt Avery. Summer tells Fen that Jamie kissed her - she didn't kiss back. Fen gives her earrings and then complains she only air-kissed him. He asks who she wants.
At the penthouse, Victor gives Nikki the plans for the new ranch for Christmas. She beams. "This is home."
Avery takes out Dylan's dog tags and seems thoughtful at home.
Phyllis arrives at the tackhouse and Nick warns her not to play anymore games - he and Avery are getting serious.
Chelsea appears at Adam's door.
Genoa City Spoilers for Tomorrow on The Young and the Restless:
Tucker plays Santa to Jill and Katherine.
Cane is put out when Neil invites Tyler to join their table.
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