Emily and Alison argue. Margo finally listens to Katie. Carly fills Mike in on Katie's past. Alison comes clean with Chris. Jack kisses Carly.
Chris and Alison are talking about their next fun-filled friend-date when Emily walks in. She is stunned to see them together - again! Chris suggests they visit the batting cages and Allie flips her hair, flirting with him. Emily can't take it any longer and confronts Alison - in front of Chris! Allie tells Emily to butt out and leave her alone. Emily storms out. Chris tells Alison that this is about him, not her and then tells her how Emily nearly got him fired.

Emily runs to the hospital to find Susan. Susan tells her that Alison won't let anyone run her life. Emily says that is because Susan has never mothered Allie correctly! Just then Alison calls and asks Emily to meet her at Java. "Alison's come to her senses," Emily says and leaves. Alison is waiting alone when Emily arrives. She starts in on how smart Alison is to be dropping Chris. Allie says she is doing no such thing and asks Emily why she is really against the friendship. Alison throws her engagement to Chris and Emily's affair with Chris in her face, saying she should be the one with the problems. Emily tries a new tack and tells Allie that Chris will never be able to accept her past. Alison thinks he can and Emily dares her to tell him the whole, unvarnished truth! She reminds Allie that Chris is a Hughes man and the Stewart women have always been second-rate to Hughes men. Alison is really hurt by the things her sister says but puts on a brave face. She tells Emily to leave her alone and then storms out.

At the hospital, Susan tracks down Chris and tells him to stay away from both her daughters. Chris says he and Allie are just friends. Susan brings up Sofie and says Alison doesn't need friends like him; then she warns him that if Alison becomes another of his locker-room stories, she'll make him pay! A few minutes later Alison arrives and hands Chris a brown paper bag. She asks why Chris really dumped Emily and he says it wasn't because of the prostitution it was because Emily slept with Dusty and lied about it. Alison asks him to open the bag. He can't believe what he sees - one of Allie's porn DVDs! She tells him about her meth addiction and the porn career and how Dusty and Emily saved her. She asks if they can still be friends. Chris hands the bag back to her and asks if she is busy tomorrow night. Allie is stunned and asks why he can forgive her but not Emily. He says it is because Emily lied from the start and kept lying.
Emily runs into Susan in Old Town and warns her mom that Alison is on a self-destructive path. Susan says she tried talking to Chris and he isn't interested in backing off either. She says maybe they should let Alison make her own decisions. Emily says there may be hope for Alison yet but won't tell Susan why. Emily goes back to work. A while later Alison arrives. She angrily tells Emily that she told Chris everything and he didn't care. Emily doesn't understand why he couldn't forgive her mistakes, too. Allie doesn't know. "Do me a favor and stay out of my life," Allie says and walks out.

Jack and Carly return home from a day out. Carly tells him he'll be able to go back to the farm soon. Just then Dallas calls and asks for Jack; insisting that he needs Jack's advice. She lowers her voice and tells Dallas that Jack is too ill to talk about police business and hangs up as Jack comes inside. He asks what is going on and Carly admits it was Dallas. Jack calls him back immediately. He agrees to come to the station to go over the case file with Dallas. Carly is upset but agrees to drive him there. Jack says he is capable of getting there on his own and leaves. A few minutes later Mike arrives to catch up with her! Mike tells her about his deal with Paul to develop part of the farm. Carly is shocked. She asks if he is home for good but Mike says it depends on Katie! Carly updates Mike on Katie - her relationship with Simon, then Jack and now Brad. She says he can still win Katie's heart but he has to act fast! Mike says he needs to figure out what he really wants. He asks her to keep his arrival in town a secret and she agrees. Mike returns to The Lakeview and asks the front desk to call Katie's room. She doesn't answer.

Margo tells Brad that he is taking advantage of Katie's weakened state. Brad tells Margo to stop being overbearing and rude but Katie says she can handle her sister. Brad goes into the lounge. Katie looks straight into Margo's eyes and tells her to back off! Margo, of course, keeps pushing Katie, telling her that Brad is a huge mistake. Katie tells Margo that she is finally happy and wonders why her sister can't be happy for her. Margo says she would be settling to choose Brad. Katie is hurt and says Brad has done nothing but put her feelings first. Katie wipes her tears and goes to find Brad. "Let's go get married," she says! They get to the airport but have missed their plane. While they are waiting for the next flight, Katie says she still wants to marry him but she doesn't think eloping is the right thing to do.
At the police station, Margo sends Dallas off to do some paperwork and corners Jack. She tells him that he has to do something to change Katie's mind about marrying Brad! Just then Brad walks in and tells Margo they need to talk. In a quiet room, Brad says Margo needs to accept their engagement because she is hurting Katie. Margo laughs at him. "You're hurting Katie," Margo says, telling Brad he is not good enough for Katie. Brad begs Margo to just listen to Katie, for once, before condemning Katie. Margo walks out and tells Jack she'll be back later. Brad turns to Jack and asks if he wants to know the news. Jack says no and walks away. Brad follows and starts bugging him. He tells Jack that Katie is important to him and that the family's opinion is important to Katie. He tells Jack that the family needs to be accepting.

At The Lakeview, Katie orders a drink. Margo arrives. She agrees to listen to Katie, not to lecture and to hold her decision on Brad until after they talk. Katie emotionally tells Margo that Brad puts her feelings first and that, though she loved Jack, he was the rebound guy and not Brad! "We have a real chance to grow up and grow old together," she says. Margo tells her they should take their time but Katie says she is tired of putting her life on hold. Crying, Margo gives her blessing. Brad arrives. Margo says he better not mess this up and then leaves to begin engagement party preparations.
Jack returns to Carly's. He kisses her on the cheek but she teases that he can kiss better than that. Jack turns and gives her a deep kiss.
Mike is walking in Old Town, wondering what to do. He turns to a window and asks his reflection for advice. Next to his reflection, an image of Katie appears. He smiles.
Next on As The World Turns:
Brad invites Jack to the engagement party while Katie invites Carly.
Carly pretends to be happy for Katie but is really plotting behind her back.
Lily asks Katie if she has heard from Mike.
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