Ally is plagued with hallucinations of Al Green. She talks about these hallucinations with Dr. Shirley Flott, who is seeing patients while Dr. Tracy is away. Shirley has no patience for Ally's daydreams and wants desperately to put her on Prozac. Wrestling with the idea of going on medication leads Ally to question what is so wrong about hallucinations: they bring her comfort and keep her in perspective? Meanwhile, Nelle and John defend a boy suspended for impulsively kissing one of the most beautiful girls in his class. During all this, Billy has had a series of "off the book" appointments and refuses to tell anyone, including Georgia, where he's going.

Risa, the bride whose wedding Ally destroyed, decides to sue Ally for intentional infliction of emotional distress; Georgia expresses outrage when Billy hires a sexy twenty-year-old as his new assistant; Ling tells Fish that she has been faking in bed.

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.