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Diesel starts causing trouble at Christmas time and he gets visited by the Ghost of Christmas Past.
Philip starts showing-off to James saying that he is very strong, so James tries to prove him wrong, but he pulls far too many trucks which causes him to have an accident on a bridge and Philip sacrifices himself by making James land on his roof.
Diesel now meets up with two other ghostly engines.The Ghost of Christmas Present and the Ghost of Christmas Future and he later finds the Fat Controller still at Knapford during the Earl's Christmas party at Ulfstead Castle.