"At the boathouse, Tad continued to pump Zach for information about the mystery lady. Zach and Tad concluded that Kendall was the real target and in great danger. With their heads together Tad tried to get Zach to think of who would kill the Fusion girls. Zach left and went to their new house. Tad saw Ryan and asked him if Spike had the same bodyguard as Kendall. Ryan asked why Spike would need protection and Tad told him about the investigation. Tad advised Ryan to keep Spike away from Kendall and Zach until the killer was caught.
Josh still wanted Kendall to tell Ryan that Emma is his daughter. Ryan walked in on the argument and wanted to know what was going on but Kendall said that she just didn't want him to get hurt. He told her to back off and she said she would. Josh threatened to tell Ryan but Kendall offered him a deal. She told him she would get Babe to leave J.R., but he said that Ryan deserved to know. Zach called and told Kendall to meet him at their new house. At the new house, Zach showed Kendall the photo of the lady in white and she asked who it was. He said it was his mother. He talked about his mother for a moment and then said he thinks he may have killed her.
Colby showed J.R. the nanny cam of Josh and Babe in Josh's room after the attack when Babe walked in and wanted to see. They told her it was homework and she left the room. When Babe returned to J.R.'s room with a lovely New Years Eve for two but J.R. said he was tired. He told her to go to ConFusion but she said she didn't want to go. He asked if she was trying to avoid Josh. She told him that Josh was considering leaving town soon and J.R. asked her when she saw him. Babe told J.R. that she had become short of breath at Fusion and Josh took her and her bodyguard back to his room. She told him that nothing happened and that all she wanted was him and their son. He told her to go make an appearance at ConFusion because it would be good for business and she gave him a kiss and left. At ConFusion, Babe and Josh stood and stared at each other.
Zarf in full ladies dress introduced himself to Bianca as "Zoe." Bianca, shaken and confused, did not take it well and slapped him. Bianca accused him of just trying to score with the lesbian. Zarf told her that she was seeing who he truly was. She told him that his actions were nothing but insulting. She called Zarf a phony and a fake and he agreed that Zarf was the illusion. He said he had been hiding behind Zarf his entire life and that he was a woman named Zoe. He told her stories of his misunderstood youth, and she told him she didn't know what to say. He said that he has been honest with her from the beginning. Zarf then announced that she was a lesbian and that she loved her.
Jack popped the cork on a bottle of cider for his and Erica's celebration and they and Sean raised a glass. Erica asked Jack about her necklace and he asked where she got it. Erica left the room and Jack interrogated Sean about what he and Colby did. He confessed his actions but then Erica came back in the room and they began the celebration. Sean and Colby talked about what they did for Jack and Erica and then went out to celebrate. Erica emerged from the shadows having heard the conversation and when Jack came back into the room said it would be a New Years Eve they would never forget."
- Soap Central