Margo consoles Caroline about Ridge. Eric tells Stephanie that Ridge is going to propose to someone. Beth comforts Brooke about Ridge. Clarke is furious when he finds out Mick is working at Forrester.
Thorne considers taking Caroline out for dinner, but Stephanie cautions against it. Brooke and Caroline both get calls from a Mr. Forrester. Eric calls Beth and asks to see her. Ridge waits for his true love.
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.