Tim Cole's estranged wife, Louise, arrives in Oakdale. After recovering from injuries suffered in a car accident, Louise files an alienation of affection lawsuit against Tim and names Ellen as a co-respondent.
Ellen, who has just given birth to Jimmy, feels betrayed that Tim didn't tell her about his wife, Louise. Therefore, Ellen leaves Jimmy in the care of Dr. Meadows, and she starts dating Burt Stanton, a friend of Jeff's. Ellen and Burt soon become engaged, but Burt breaks the engagement after learning of her affair and baby with Tim. With seemingly nowhere else to turn, Ellen gives up Jimmy for adoption.
Jeff, after leaving the Army, joins the Baker family business. He wants very much to prove himself to his parents, but he also has never stopped loving Penny. Penny, however, is now engaged to Tom Pope. After overhearing Jeff's declaration of love for Penny, however, Tom frees Penny from their engagement.
Penny and Jeff marry each other (for real this time) in a beautiful Christmas church wedding. (The minister who married them is played by the Reverend Sidney Lanier.)
© 1997 drjackso@suffolk.lib.ny.us