Ridge proposes to Caroline. Brooke realizes her call was from Thorne, not Ridge. Eric tells Beth that he missed her, and they kiss. Stephanie thanks Sally for the gift and tells her the Forresters had a wonderful Christmas.
Clarke confronts Kristen about Mick. Kristen begins to doubt Mick after what Clarke said. Ridge and Caroline plan to tell the families about the engagement. Thorne and Brooke both hope that Caroline and Ridge aren't together.
Clarke agrees to marry Sally as long as she gives him time to accept her sexually. Donna tells Macy she is in love with Thorne, too. Eric is confused to hear that Brooke has left town. Stephanie congratulates Eric on his singing.
