It’s Christmas time in Hope Valley, and Elizabeth is reflecting on the last three years in her journal. She has taken on the Christmas Committee and all the responsibilities that come with it. Of course, there are some residents that aren’t so confident she can handle the responsibility, especially since this was a role once occupied by Rosemary.
Back in the classroom, Elizabeth prepares her students for the Christmas play. After class, she and Jack take a romantic stroll through the forest to pick out the perfect Christmas tree. While there, they are visited by a dog who leads them to the perfect tree. Later on, the two decorate the tree and Jack asks her to accompany him to the Mountie Christmas Ball. When it comes to finding the perfect gown for the dance, Elizabeth finds an unlikely volunteer: Rosemary!
Abigail pays Henry a visit and tells him some news he does not want to hear: he cannot go back to being mayor of Hope Valley because of the ongoing federal investigation into his activities as mayor. An angry Henry accuses Abigail of being happy with the news and refuses to help her with any mayoral questions she has. Later on, she asks Bill to help out in the bakery, so she, as head of the town council, can fulfill the duties of substitute mayor.
Hope Valley gets a surprise when Sam Bailey shows up in the town with his cart of notions and wares. The peddler promises Jack he will stay clean and out of trouble during his stay. Jack isn’t completely convinced that Mr. Bailey will keep his word but in the spirit of the season, he’s willing to give him the benefit of the doubt.
Bill is taking on the restaurant duties as Abigail continues to work on the town’s new budget. Elizabeth stops by to let both Bill and Jack know that she is in need of help when it comes to decorating the town for Christmas.
In the classroom, Elizabeth assigns the roles for the Christmas play. Rosemary shows up to the classroom to offer up her help with the holiday festivities. Elizabeth reluctantly accepts the assistance and gives a disappointed Rosemary the job of stringing popcorn for the tree.
Sam Bailey proves to not be a man of his word when Jack discovers him in possession of stolen jewelry. As punishment, Jack takes Sam to jail where he discovers that the jewelry he found on Sam belonged to Rosemary. It turns out she sold the jewelry to Sam without Lee knowing, and in return, Lee reported the jewelry as stolen. After selling the jewelry to Sam, she swore him to secrecy. In the face of the misunderstanding, Jack has no choice but to release Sam.
Later on, Elizabeth receives the devastating news that the supply train carrying the gifts, food, and supplies for Christmas has derailed outside of Union City. She turns to Abigail for support, who tries to offer up some kind words. News goes from bad to worse when Elizabeth also finds out that Jack is behind schedule on repairs for the Lawson family’s new apartment. Like many of the settlers, the Lawsons lost everything in the flood but Jack vows that even if it means missing the Mountie Ball, he’ll make sure the Lawsons gets the holiday they deserve.
The town gathers around to discuss how they are going to bring Christmas to Hope Valley despite not having no supplies. Jack and Elizabeth assure everyone that if they all pull together they can still have a proper Christmas. Abigail suggests the women pull an all-nighter to make toys for the children and Bill offers to cook for the Christmas Eve banquet with whatever scraps they can scrounge from around town. With the plan in place, Hope Valley pulls together, making toys, cooking food, and wrapping presents for the children. Meanwhile, Jack gets some extra help to finish off the apartment for the Lawson family. Later, Abigail confronts Henry about his return to Hope Valley. She reminds him that he needs his friends and his family. She tells him that she also needs his help and she won’t be pushed away, even if that means she has to visit him every single day until he complies. She ends their conversation with “Merry Christmas and welcome home.”
That night, the school puts on the Christmas program for the town. After the children are done performing, Pastor Frank takes the stage to tell the audience the greatest gift to receive on Christmas is God’s love and the greatest gift we can give is love for one another. Just then, the doors open and Santa makes a surprise visit to shower the children with presents and holiday greetings.
Jack heads outside and runs into Sam as he is packing up his wagon. Before heading out of town, Sam gives Jack a wrapped present to deliver to Elizabeth. He smiles and takes the gift. One last generous offer from Mr. Bailey goes to Cody. Sam tells him that he has a long journey ahead of him and it would mean a lot if Cody could give his dog Dasher a good home. Cody is overjoyed about his new four-legged friend and promises to take the best care of him.
As the town rejoices over Christmas being saved, Elizabeth is surprised to come home and find a note from Jack requesting her attendance at the saloon, formal attire recommended.
When she arrives at the saloon, she finds it romantically decorated, and a sign that reads “Welcome to the Mountie Christmas Ball,” with Jack dressed in uniform. He reaches his hand out and the two share in a romantic dance.