No 22
Daniel asks Imogen what happened. She claims it was because he was being so sweet: she doesn't have feelings for him. She begs him not to tell Amber, but he says that he and Amber are always honest with each other.

DANIEL: It doesn't feel right if I keep it quiet.

Daniel leaves and Imogen sighs.

The Waterhole
Naomi tells Sheila that the band she had book have pulled out because of the elf fight. Sheila comments that the Carols are really important to her.

NAOMI: This isn't about launching a new me. One without disaster - just success.

Sheila has an idea...

Harold's
...and Karl is thrilled! He offers to play some Right Prescription songs. Naomi points out it's "Erinsborough Carols", so they just want carols. Karl agrees, then asks loudly where he could find a support band. Georgia and Chris are at a nearby table. Chris says his hand has not recovered, but Karl gives him the all clear. Georgia reminds Karl she hasn't sung since her operation, but she agrees to be MC. On her way out, Naomi meets Bailey.

NAOMI: That stupid elf fight of your has given me nothing but headaches.
BAILEY: Yes, but all publicity is good publicity, so...
NAOMI: OK. You know, from now on, you're going to be my personal assistant, and when I say "personal assistant", I mean "slave".

Meanwhile, Amber is talking to Lauren about Daniel.

AMBER: He was very Daniel. Completely reasonable and agreeable. It's like he didn't hear a word I was saying.

Lauren comments that maybe Daniel did hear what she said, but didn't want to listen. She says that now she's left school, it's the start of her life, and she should embrace it.

The Waterhole
Karl is taking something (his amp?) outside, and Daniel offers to help him. He tells Karl that there's a "thing" involving someone else, which was a mistake, and not mutual. Karl suggests he could "sit on it" but it could crop up later.

Sheila is pleased to see that Karl has agreed to help. Naomi says she's waiting to hear from a potential sponsor. However, she gets another text...

NAOMI: I've just been blacklisted by the Santas' Union
SHEILA: Come again.
NAOMI: You know, I hired some people to play Santa and the Snowman, and now they've pulled out because they said I "endangered the life of one of their card-carrying elves".

Naomi says she can't have Erinsborough Carols with no Santa...

Waterhole - outside
Naomi and Santa (aka Sheila) emerge from the Waterhole. A bratty kid (Stuart) comes up and tells Sheila that she sucks, as she's "not even a man".

STUART: Is that a real beard?
SHEILA: Of course not.
STUART: You look old enough to grow one.
SHEILA: The beard's false, the teeth aren't. So any more smart comments from you, you'll have bite marks into the New Year. [he runs off]
NAOMI: You remember when we spoke about projecting the appropriate Christmas spirit?

Susan comes up and wants to take a photo of Sheila. Naomi explains that her professional Santa had pulled out... and signs up Susan to be her Snowman. Later they bump into Nate, who comments that it's the middle of summer and a bit hot for a Snowman. Naomi says that why it's called Melty. Susan takes Melty's head off and ducks behind a tree as someone from school goes past. Sheila says that people think it's hilarious when they are not getting dressed up themselves. Naomi says they have a Sugar Plum Fairy costume. Nate hurries off to decorate a tree!

No 22
Imogen tells Paige that she kissed Daniel, and that she thinks Daniel is going to tell Amber. She wonders if she should tell Amber first. She wants to make things right.

PAIGE: No, you are trying to find a way to make yourself feel better because you feel like crap and by telling Amber you are going to make her feel the same. As your sister, I can't let you do that to my other sister.
IMOGEN: What if Daniel blabs?
PAIGE: My advice? Say nothing and hope like hell that he doesn't.

Harold's
Daniel comes in to drop off some candles for the Carols. He asks Amber if she's seen Imogen, as she needs a friend. They agree that they will meet somewhere private for the Carols.

The Waterhole
Sheila is grumbling about her Santa outfit.

SHEILA: You're a doctor. Why don't you tell her I shouldn't be doing this because I've got a medical condition.
KARL: Last time I heard, irritability wasn't a medical condition.

Naomi arrives, followed by Bailey with the carol sheets. Unfortunately, they have been printed in Wingdings, and it's too late to take them back. Karl's "solution" of a medley of Right Prescription songs is rejected, but Bailey suggests putting the lyrics online so that people can download them.

Harold's
Amber apologises to Imogen, much to her surprise. Amber says that she's been wrapped up in her life and hasn't been there when Imogen needed her. Imogen admits it's been difficult. She asks about Amber, who says that she and Daniel are having issues. Imogen assures her they are perfect for each other. Then Paige, who was listening to everything, comes over and comments that Imogen obviously took her advice, and the important thing is she knows what she did was wrong.

The Waterhole
Oliver Klozoff - hasn't he been on the Simpsons? - arrives. He is from the Council, and he says that the Carols must be called off, as $15 million public liability insurance is not sufficient. Naomi says that *Mayor* Paul Robinson said it was fine. He says that Councillor Sue Parker says it wasn't, and until it's resolved, the event can't go ahead. Naomi says it must be a political payback against Paul. Sheila suggests discussing it in her office, rather than arguing in public. Naomi doesn't want to do that, but Oliver is pleased that someone is civilised. Not for long, because after he walks in, Sheila locks the door behind him, claiming that it often sticks.

Lassiter's Complex
Georgia welcomes everyone to the Carols, and she introduces the Right Prescription. After a short while, she joins them on keyboards.

Harold's
LAUREN: Do you realise this is our first Christmas together?
PAIGE: Yeah, pretty cool.
LAUREN: It's more than cool. This time last year, I was... The pain of losing you was getting to me. Having you here now is the best Christmas present ever.

Paige says that Christmas never meant much to her before. She had presents and fancy dinners, but it wasn't a happy time, and they had no fun traditions. Lauren says they should start some.

Lassiter's Complex
It's dark and Karl is still singing. Then he says it's time to meet Santa, Melty the Snowman and Bossy the Reindeer. They all count down and Melty turns on the Christmas lights. Karl starts singing Silent Night.

By Lassiter's lake
With Silent Night in the background, Daniel invites Amber up to meet his parents and sister for Christmas. She says she wants to spend Christmas with her family, and she thinks they should spend some time apart.

AMBER: It's not fair to you or me that I can't really commit to us until I know who I really am.

She says she needs to take a break and it's not fair to keep wearing the engagement ring, which she gives back to him. He asks if they're breaking up, but she can't answer.

Lassiter's complex
Imogen sits alone. Karl tells Susan that she looks good in Melty's costume and they kiss.

No 32
Paige and Lauren decorate their tree, hanging up their two bears together. They hug. An upset Amber comes in, and Lauren rushes over to hug her.

The Waterhole
Naomi and Santa-Sheila go over to the office door to let Oliver out. He leaves without a word, and Naomi and Sheila hug. At the bar, Daniel looks at the engagement ring as he drinks his beer.

Unmissable Drama
- Paige tells Imogen about Amber and Daniel, and Imogen feels guilty
- Mark tells he thinks he knows where Erin is
- Paul tells Gary to make sure "this" doesn't blow up in their faces
- Sheila sees Gary talking to Paul