Jess and the gang go to a series of holiday parties and Jess runs into Sam. She still likes him, but doesn't trust that he's ready to be in a relationship as he claims he does. Even after leaving a party, Jess sees Sam again because Winston called him in order to get the cranberry out of his ear, that was thrown at him earlier when he claimed Santa wasn't real. Jess rejects Sam and they move onto the next party.

Schmidt is avoiding Cece after being rejected by her. She bought Schmidt a Christmas gift: a bracelet with metal that is Schmidt-approved. She bought him this to thank him for telling her "I love you." He finally accepts the gift and the two remain friends in the end.

Meanwhile, Nick is insecure about dating a stripper, but tries to prove he is fearless about sex when Angie suggests they have sex and Nick wants to do it at the party in Santa's sleigh. After an unsuccessful and embarrassing attempt, Nick insults Angie and they get into a fight. He realizes he is too scared to date someone who is so fearless until Jess encourages him to make amends.

Nick apologizes to Angie and strips for her to show her he is serious about taking a risk with her. This inspires Jess to want to believe Sam. Jess, Winston, Angie, Nick, Schmidt, and Cece all go to the hospital to help Jess see Sam. They pose as carolers until Sam pops out and the two kiss and reunite.