On Christmas morning, Phebe and Rose open their presents together in Rose’s room. Rose receives a pair of ice skates and a sled from Uncle Alec. While decorating the house for Christmas dinner, Charlie mischievously hangs mistletoe from a chandelier, challenging Rose to kiss someone, but Rose argues that she won’t fall for his trick. When Rose comes down for dinner, Aunt Jessie and Jane admire how pretty she is in her silk dress.

After dinner, Uncle Jem, a sailor, makes a surprise appearance, returning from a long voyage at sea to the delight of his family. At first, Rose feels left out and hides behind a curtain, but she feels included later when Uncle Jem greets her. He is struck by how much she reminds him of his dearly departed brother and feels immediate warmth and tenderness for her. They all dance together, and Rose loses a game to Charlie for which he challenges her to kiss “old Mac” under the mistletoe. She does, but she kisses Uncle Mac instead of her young cousin, cleverly using Charlie’s words against him. At the end of the night, Phebe begins to sing “Sweet Home” and the rest of the family joins in to finish the tune.