Cage continues to ride the high of his birthday gift from Nelle. It was a life changing night and has had a profound effect on his view of himself and his self-esteem in regards to women. The firm is defending another law firm, Johnson Biblico, in a suit alleging sex discrimination. Elaine is distraught that she won't be able to compete in the swing dance competition since her partner pulled his Achilles heel. Her hopes are raised when Ling reveals that she can dance swing and offers to enter with Elaine. Billy and Georgia continue to work on their relationship as part of the aftermath of Billy's almost-affair with Ally. They have started to see a marriage counselor, Dr. Hooper, who thinks it would be a good idea if Ally were to make an appearance.

Ally is having weird dreams about moments from her childhood, some good, some painful. But each compels her to wrestle with the question of true love. Can it be real or must it inevitably be just an illusion? Ally's latest case is calling the issue into question as she and John Cage are representing a woman charged in Criminal Court with fraud. Barry Philbrick has testified that his wife, Kelly Philbrick married him solely for his money. He claims that at the time of their marriage, she wasn't in love with him, that her wedding vow was a lie and that she admitted it in a letter to a close friend that Barry found. Kelly readily admits to her lack of feelings for Barry: she loved him but she was never in love with him. On the stand Kelly admitted that she had been writing to an imaginary friend: the man of her dreams, who then became the standard by which every real man in her life had to measure up too.

Ally's heart is broken and not by Billy or Greg. It's just one big stress fracture. She's come to the realization that there isn't anyone out there for her. She has her image of the perfect man, but is beginning to believe that he does not exist. Surprisingly, a pep talk from Fish leads Ally to become more proactive about her love life. Working on the, "you have to kiss a lot of frogs before finding Prince Charming theory", Ally decides to go on a dating frenzy. She also decides to go for a total hair and fashion makeover. Nelle is starting to become annoyed with John Cage because he seems to be the only one in the firm who understands Ally's imaginary love life. Nelle is worried that John and Ally feed off each other and now that she and John are a couple, she would really prefer her man to face life head on.

Elaine finds a real, live six-week-old baby in a nativity scene manger and wants to keep him. Cage and Ally represent Elaine in her fight to gain custody, while the rest of the office (full of child-less lawyers) become enchanted with the baby. Even Ling considers having children. Billy attempts to reconcile with Georgia. In preparation for the Christmas party, Elaine convinces Ally to sing a sexy song but Richard and Billy have their reservations.