After a few failed dates, Scott finds himself falling for Carol. He accompanies her in a horse-drawn sleigh to the faculty Christmas party, during which she confesses she used to believe in Santa as a child, until she was forced to stop doing so by her parents after fighting with children who told her Santa wasn't real. Using a little of his Christmas magic, Scott enlivens the otherwise dull party by presenting everyone with their childhood dream gifts. He makes a special presentation to Carol, and, with his last remnant of magic, wins her over and they kiss under mistletoe. However, when Scott attempts to explain to her that he is Santa, she believes that he is mocking her childhood, and throws him out. Later, Charlie confesses to Scott how hard it is for him that Scott is never around like other fathers, and reveals the pressure he is under to conceal the secret that his father is Santa. Lucy manages to convince Charlie not to be mad at him, which leads Charlie to convince Carol that Scott is Santa by showing her the magic snow globe.