Lily makes some decisions. Gloria continues to try and prove she has changed. Jack tries to move forward.

At Crimson Lights, Kevin, Jana, Lauren and a griping Michael meet for one of Gloria's mandatory family meetings. Gloria comes in wearing a white sweatsuit and flat hair! She says she has changed and wants to move back in with Lauren and Michael! Kevin giggles. Gloria ignores him and talks about how she will babysit Fen and so on. Michael gently tells her that it isn't going to happen. She then suggests going back and forth between her two boys' homes. Kevin says she can't live with him and Jana. Michael tells her it's a soft market - go and find a dream home! With that, they all leave, except Jana who puts a hand on Glo's shoulder. Meanwhile, at the Club, Jeff is looking for Gloria, banging on her door and hollering. When the maid comes out, he excuses himself. Back at Crimson Lights, Gloria tells Kevin and Jana that she is over Jeff Bardwell! Kevin reminds her that she could go to prison, but Gloria seems to have a plan.

Jack arrives home and hollers out for John, but there is no response. Suddenly, Sharon comes bounding down the stairs, very happy that they have their house back! Jack can't get into the spirit though - he says he no longer feels his father's presence in the house! Jack admits to Sharon that he doesn't feel he measures up. "Sometimes I feel that I'm going to spend my whole life in John Abbott's shadow." Sharon reassures him by explaining that there is still a strong father presence in the house, but now they call him Jack! Sharon suggests getting the whole family together to celebrate being back in the house. Jack agrees. She remembers the time Jack helped Noah when Nick was missing, she reminds him how beautiful it was the way he reached out to her son. They fall into a deep kiss.

At the Club, Cane tells Jill he has to go back to work. Jill tells him distracting himself with work isn't going to solve the problem - he needs to talk to Lily again. Jill laments Lily not having her mother right now, and she asks Cane if he feels she should approach her. Cane says no way, Lily needs to be left alone to decide! Jill remarks that he really wants this baby. Cane replies that he does, but that all that matters right now is Lily. Jill says, "How gallant! But it's not true!" She advises her son that his feelings matter as well! Meanwhile, Lily reiterates to Neil, at his place, that she wants the baby, and that it is what Cane wants too. He immediately decides that she will move back into his place, and they'll figure out her school schedule and get a nursery set-up! Lily backs away. "No dad! I have to go talk to Cane!" Neil tries to convince her to stay, but she leaves.

Katherine meets Jill at Crimson Lights and Jill tells her mother that Lily is pregnant! Meanwhile, Lily meets Cane at Jabot and tells him she has made a decision. She says that it is what he wants - she's going to have the baby! Cane is overjoyed and embraces her! She explains that she received a sign from her mom, and also she knew that he would be an amazing father. He tells her that this is the greatest gift anyone has ever given him! Alistair turns up at Jabot and nearly gives the receptionist a heart attack, thinking that he is the deceased John Abbott! Jill drags him into the office and lectures him about his expenses. Lily, in the meantime, has headed to the Club and corners Devon and Colleen. She announces that she has decided to have the baby. Colleen asks what Cane said, and Lily tells her that Cane is thrilled. Devon asks if she's moving in with Cane, and Lily says she just doesn't know! Back at home, Neil talks to a photo of Dru about their baby having a baby, when suddenly there is a knock at the door. It's Cane. "We need to talk." Cane tells Neil that he is with Lily one hundred percent on this - he is thrilled to be a father! They agree that they both will do whatever Lily needs. Neil says that Lily should move back in with him. Cane says that Katherine and Jill would love to have Lily and the baby at the Estate! Neil shakes his head and reminds Cane that they aren't married, and he really doesn't know what parenthood is going to be like! Back at the Club, Colleen and Devon irk Lily by having opinions on what she should do. She stalks off. Cane heads back to Jabot, and has a talk with his grandmother. He happily tells her that they will be having the baby! She is pleased. She asks if he loves Lily. He says without a doubt. He admits there's a problem though - Neil! He explains that he is pressuring Lily to move home. "I don't want to insult the man, but it's my child!" Later, Devon arrives at home and he and Neil discuss Lily's situation. Devon notes that this might change Neil's own relationship. Neil says he'll adapt.

Dining at the Club, Lauren tells Michael that if he would've let Gloria move back in, she would've hurt him! Over at the bar, Jack tells Colleen that he and Sharon are back in the house. As she goes to get his takeout, Jack sits down. Gloria comes in and heads to the bar. As Michael approaches her, she asks him to drop the lawsuit against Jack - it's wrong and it will come back to haunt him! Jack, meanwhile is listening to this conversation thoughtfully. Gloria leaves the bar and Alistair spots her. He asks her to have dinner with him and when she spots Jeff she agrees. Alistair runs off to find a table, and Jeff wonders if Alistair would still admire her behind bars! She tells him to go ahead and do whatever! Jill comes up to Jeffrey and she again offers to be a confidante for him. He asks to buy her a drink. Gloria watches jealously. Once they're seated, Colleen serves Gloria and Alistair and is stunned by his resemblance to her grandfather! Across the room, Jill tries to convince Jeff that Gloria is very attracted to Alistair. Jeff becomes glum. Later, Alistair walks Gloria back to her room and she leaves the door ajar, when she knows Jeffrey is outside, she pretends to kiss Alistair!

Lily arrives at Crimson Lights and takes a call from Madame Chauvin asking her to come to the studio. She tells her she will be there right away! Over by the counter, Lauren and Michael get heck from Kevin for eating their Club food in his establishment. Michael explains that they had a run-in with Gloria, and that she wants him to drop his lawsuit! Lauren suggests that they find out if Glo is really sincere by inviting her for dinner! Michael agrees. Back at the Abbott House, Jack and Sharon remark on Gloria first giving back the house, and now asking Michael to drop the lawsuit! As they sit on the sofa and plan a celebration, Jack notes that there is only one way he wants to celebrate right now! They hold hands and head upstairs! Meanwhile, Lily arrives at the ballet studio and finds a single rose. Cane appears and tells her he thought that this would be the perfect spot to propose. He gets down on one knee. "Will you marry me?" She says she always imagined being proposed to, and it was always like a fairytale. She says she loves him for doing this, but in her fairytale, the Prince proposes because he wants to, not because he has to! She says she just needs more time. He accepts her answer. She tells him that she loves him very much - he is truly her Prince. They kiss and she runs out. Cane appears to be emotionally crushed.

Next on The Young and the Restless
Felicia tells Nick, "Adam came on board at Newman house, so now he's rolling on the porch with the big dog, and you're in the doghouse."
Gloria throws Alistair out of her room - without his clothes!
Nikki grabs David's cell phone by mistake!
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