A dollhouse comes to life in Oakdale!

Faith and Natalie are walking through Old Town with Lucinda when a dollhouse catches their eye. They look at it for a while and then continue on. The dollhouse comes to life!

Inside, Lily, who is a widow, and Dustin are sitting before a roaring fire in a Victorian living room. Faith is with them. They talk about holiday plans and Faith scurries away. Dustin asks Lily if it is the right time to announce their engagement. Just then Holden walks in from the stables! Dustin leaves. Holden tells Lily that Dustin doesn't deserve her. Before he can say more Mrs. Jenkins (Bonnie) arrives and flirts with him a little. When he leaves she reminds Lily that being seen with a stable boy is beneath her station. Meanwhile in the kitchen Lucinda, who is a cook, is ordering the other staff around. Bob, who is a butler, is also keeping the staff in order. Holden comes in and Lucinda reminds him that being forward with Lily is not a good idea, especially when Dustin will soon be lord of the manor. In the parlor, Luke welcomes Noah to the get-together. They hug and then pull apart quickly when they realize Dustin is watching them. Noah tells Luke he is engaged to be married to a family friend. Luke is stunned. Back in the main parlor Chris presents Emily to Lily and Mrs. Jenkins. Bob sidles up to Kim, who is one of the ladies of the house, and they make plans to meet on the sly a little later. Dustin comes in to the room; he and Chris don't like one another at all. Bob sees Holden come into the room and tells him to get back to the stables. Dustin pulls Emily away from the crowd. He tells her not to marry Chris, promising that they will be together once he has married Lily for her money! They kiss and Emily hurries away. As Dustin returns to the party, Holden confronts him about what he just heard. Lily comes up; Holden tells her what he heard and she is torn between believing Holden or believing Dustin. Lily faints! Later, Holden brings Lily a glass of wine. He tells her Dustin has been removed from the home and the rest of the partygoers are in another room. He comforts her, telling her that he will always be there for her. Before he can leave Lily calls to him and asks him to sit with her for a while. "It's all I want for Christmas," she says. Holden comes to the sofa, sits with her and takes her hand.
Faith and Natalie return to the window because Faith dropped a glove. Faith realizes that a different man is sitting with the lady on the sofa. Lucinda doesn't think anything of it. In the attic of the dollhouse, a young woman is sitting at the window.

Back in the dollhouse, Rosanna is a sickly woman and Margaret (Meg) is her caretaker. She tells Rosanna to return to bed as Paul returns to her room. Rosanna returns to her bed after a little more time watching the carolers. Margaret goes downstairs where Lucinda, the cook, is exchanging barbs with Dr. Montgomery (Craig!). Margaret tells the doctor, who is quite attracted to her, that he needs to concentrate on Rosanna. He returns upstairs and sends Paul on his way. The doctor sits with Rosanna, who is upset at the attraction between her husband and Margaret. Dr. Montgomery promises to take care of the situation for her! "I will attend to the matter this very night," he says. Downstairs, Paul and Margaret hurry to one another and embrace. Paul tells her he dreams of having a home with her, having children. Margaret reminds him that he has to stay with his sick wife. Paul gives her a gift, a locket engraved "Forever, Love". Dr. Montgomery listens to them from outside the room. He enters as Paul kisses Margaret's hand. He tells them that Rosanna has made great progress and Paul hurries away. Before Margaret can leave Dr. Montgomery pulls the locket from her hand and swears he will tell Rosanna - unless she sleeps with him and leaves the manor! Back upstairs, Paul sits with Rosanna until she is asleep. Margo, a maid, delivers two glasses of wine and a note from Margaret. It is a Dear John letter, explaining that she must leave him but that she will never forget him. Before he can reach her, Margaret leaves the home with Dr. Montgomery. Rosanna watches the carriage pull away from her upstairs window.

Back in Old Town Parker and JJ try to pull Sage away from the dollhouse but she can't turn away from a woman doll, watching the house from outside.

Back in the dollhouse, Carly is on the outside looking in at Dallas and Jack, who are soldiers at a party. Katie is there with Brad, who is a minister. Katie talks with Lady Hughes (Nancy) and thanks her for the invitation; Lady Hughes introduces Katie to the Spinster Hyatt (Vienna). Katie wonders if she will become a spinster, too. Across the room Jack sees Katie and is instantly attracted. He is soon distracted, however, by Mrs. Tenney (Carly), a poor woman with three children in need of shelter. Brad tells them all that Mrs. Tenney is a divorcee and everyone is shocked. Jack and Brad retire with the other men as JJ and Parker walk in to tell her that Sage is missing! Jack, alone in another parlor, finds Sage hiding out behind the tree. He lifts her so that she can see the angel. Carly and the boys walk in and Carly sends the kids away. She apologizes to Jack, but he doesn't mind spending time with Sage. He wishes her a happy Christmas and a blessed New Year. Officer Coleman (Henry), a constable, arrives to see Spinster Hyatt. He is very nervous around her but tries to ask her something. Before he can say more than that he is a widower, Lady Hughes screams out that someone has stolen her necklace! Jack returns to the main room in time to hear the women accuse Carly of the theft. He tells them that they cannot simply accuse. Just then Spinster Hyatt finds the necklace, which only fell to the floor. The women apologize to Carly. "It will be a merry Christmas afterall," Carly says.
Back in Old Town, Will and Gwen pass by the dollhouse as a light goes on in the nursery. Both of them believe this is a sign.

In the dollhouse, William and Gwen are standing over an empty crib. Their baby died earlier in the year. He tells her there could be other children but Gwen doesn't believe it will happen. She hears a baby crying but believes it is only her imagination. They go downstairs when Ms. Stewart (Alison) is going through their mail. She thanks Gwen for taking her in and shows her a letter with a necklace in it. Gwen hears the crying baby again and this time doesn't think it is only her imagination. William hears it, too, and so does Ms. Stewart. They all go outside and find a baby in the cold. William says they have to notify the police; Gwen says they can offer a notice and reward for information. Ms. Stewart hurries off to place the notifications. Gwen and Will are standing over the crib when Iris enters, telling them the baby's mother has been found. Downstairs Barbara, the proprietress of a home for unwed mothers, is waiting with Sofie and Aaron. She shows them a birth certificate and asks for the reward. A baby nurse (Susan) arrives and tells them that she believes the baby is really Gwen's because she saw Barbara leaving the hospital with a baby the night Gwen's baby "died". Sofie tells them it is true and that she was in on it but has wanted to return the child for some time. Alison returns and shows Gwen the necklace that came in the mail. Angry, William confronts Barbara. Barbara tells them that Iris was part of the scam! Aaron tries to run but William stops him. Alison calls the police and the criminals are taken away. It begins to snow outside.

The servants all return to the kitchen to toast their own Christmas Eve. Tom, who is a lowly servant, proposes to Margo as Bob returns. Bob tells Tom he may become a butler yet.
Back in Old Town, Faith, Sage and Natalie return to the window and watch. They realize that all of the dolls are now in the main salon and all of the servants are now in the kitchen. As Sage watches the Carly doll turns and winks at her!
Next on As The World Turns:
Chris' guilt begins to eat at him.
Parker decides to skip Christmas Eve at Carly's!
All recap pictures are courtesy of Soaps.com.
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