The winter holidays have arrived but no one's plans are going according to plan. As Dylan prepares to go to Baja for Christmas, a mysterious woman, named Suzanne, and her 11-year-old daughter, named Erica turn up on his doorstep, claiming to have a connection to the McKay lineage. Meanwhile, the Walsh family plans a Hawaiian holiday, but end up stranded in the airborne plane. Steve dresses up as Santa for disadvantaged children. Frustrated that Donna won't give up her virginity, David starts to act coldly towards her during a Christmas party at Mel's house. Also, Jesse takes Andrea to a midnight mass.

David's addiction to stimulants spirals out of control and the result could cost him Erin's life. Meanwhile, the gang takes a ski trip where Donna meets a cute ski bum named Chad, but her attraction to him is complicated by her still strong feelings for David. Andrea gets a life-altering shock when she learns that she is pregnant. Which Suzanne out of town, Dylan spends the day with Erica teaching her how to surf, which takes a turn when Erica gets her first menstrual period, forcing him to turn to Cindy for assistance. Dylan also learns that Suzanne has been keeping secrets from him when Jim makes a background check of Suzanne on Dylan's behalf with her social security number and uncovers a hidden bank account containing $20,000 after Suzanne has previously told Dylan that she is broke. When Dylan confronts Suzanne with the lie, she tells him that the money was only recently deposited into her account from a property insurance settlement. Dylan believes Suzanne and agrees to trust her from now on, but Jim continues to remain suspicious about Suzanne and her intentions for Dylan.