Christmastime is here, and Cedar Cove is a flurry of activity. Justine is shocked to learn Warren is under investigation by the FBI. She and Seth fear all is lost when it looks like their new restaurant is the target of arson. Eric finally turns up in town, and Jack is eager to help his son become a responsible father. While Grace does her best to make up for past mistakes with Cliff, Maryellen finally tracks down the elusive John Bowman.
As the holidays approach, Olivia is dead set on going to Philly to win Jack back, only to find out he is back in town unannounced to tie up loose ends. Seth returns to Cedar Cove with good news of a new business venture, but it’s complicated by Warren’s involvement. Meanwhile, a beautiful, pregnant stranger comes to town, and her true identity is a surprise to all, especially Jack.
As Jack contemplates taking his dream job far away from Cedar Cove, Stan separates from his wife and returns to town hoping to win Olivia back. Meanwhile, Maryellen does some sleuthing to find out what is in John’s past and Grace finally decides to come clean to Olivia about the kiss she shared with Will.
Grace finds herself drawn to two different men as Jack worries about Olivia getting closer to her ex-husband. Meanwhile, Seth and Justine take their relationship to the next level, while Maryellen and John grow closer but his secretive behavior makes Maryellen worry that he may be hiding something.
As Olivia deals with the news that Jack may get a job offer that will take him away from Cedar Cove, Grace struggles with what to tell Olivia about the kiss she shared with Will. Meanwhile, Justine helps Warren though a health crisis which causes tensions between her and Seth and Stan’s wife becomes concerned that Stan is growing away from her and closer to Olivia.
Everyone in Cedar Cove gets involved in the town’s charity bachelor auction as Justine and Olivia scheme to help Grace and Maryellen land the bachelors of their dreams. Meanwhile, Stan asks Olivia to accompany him to see his therapist as they deal with past hurts involving their lost son.
Olivia and Jack finally have their Seattle getaway, but things don’t quite go as planned and later Olivia becomes distracted trying to help an ex-con she put away who claims to have turned his life around. Elsewhere, Rosie and Zach are trying to follow the judge’s orders about their shared custody, but their continuing battles begin taking their toll on their daughter.
Justine and Olivia must each face their own fears when Seth goes missing in Alaska and Justine sets out to find him. Meanwhile, love is in the air in Cedar Cove as the local theater company puts on Romeo and Juliet while Jack wants to take his relationship with Olivia to the next level and Maryellen seeks to deepen her friendship with a handsome photographer.
Olivia presides over a messy divorce, while Grace must scramble to raise funds for the library when the town council decides to shut it down to save money. Meanwhile, Jack continues to struggle with his relationship with his son Eric. Things finally come to a head when Eric refuses to work and Jack must decide whether he is strong enough to give his son an ultimatum.
Bob and Peggy must deal with a suspicious death at their Bed and Breakfast, and Justine gets a chance to show her work at the local Art Walk. Meanwhile, Jack struggles with his relationship with his son Eric. When Olivia tries to help by giving Eric a job, things go from bad to worse and ends up threatening Olivia’s budding relationship with Jack.