It is Christmas time in Scranton, only this time there is no drama at Dunder Mifflin. Michael doesn't know how to deal with that.
Darryl gets his daughter for Christmas this year and wants to make it as good of a time as they had two years ago. He brings her to the office party and it is not very fun for her. Pam tries to help out by having fun in the warehouse, but Andy ruins the game by telling Darryl's daughter where the hidden star is immediately.
Dwight makes fun of Jim for liking the first snowfall of the year, so Jim throws a snowball in Dwight's face. They decide to have a snowball fight, and when Jim goes outside for it, Dwight ambushes him by jumping out of a snowman with a backpack full of snowballs. He continues to pummel Jim with snowballs after dressing up like Pam and sitting at her desk.
Toby has jury duty so Holly is taking his place at the office. Michael decides to cancel the current office party and have a classy Christmas party in honor of Holly's return.
Michael and Holly hit it off immediately, but he soon finds out that she is still dating AJ from Nashua and gets upset. He throws her Woody doll in the trash and pours coffee on it. When AJ shows up to surprise Holly, Michael hides his anger, is nice to AJ, and cleans up the Woody doll for Holly.
Pam tells Michael that Holly is giving AJ an ultimatum so be patient on Holly. He has hope.