On the broadcast, Bob invites veterans of the 151st Division to come to Pine Tree, Vermont, on Christmas Eve ("What Can You Do with a General"). Betty catches Bob's televised pitch and realizes she was mistaken. She returns to Pine Tree in time for the Christmas Eve show. When the General enters the lodge, he is greeted by his former division, who sing a rousing chorus of "The Old Man." Just as the following number ("Gee, I Wish I Was Back in the Army") ends, he learns that snow is finally falling.
In the finale, Bob and Betty declare their love for one another, as do Phil and Judy. The background of the set is removed to show the snow falling, everyone raises a glass, and toasts, "May your days be merry and bright; and may all your Christmases be white."