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.

Henry has had an accident at the hill leading to Ulfstead Castle after hitting a fallen rock and Rocky is sent to help out, but his coupling snaps when the rock hits him and he plunges down the hill and derails and the Search and Rescue Team have to work together to put him back on the rails again.