Frasier plans a big Christmas blowout, while Daphne comes to grips with some surprising information; Niles' new relationship hits a snag.
Tropes:
- Blatant Lies: Daphne's final line of the episode is that she's "never been more relieved in her life" after the misunderstanding with Niles is settled...before repeatedly glancing over her shoulder to look at Niles and Mel.
- Cannot Spit It Out: When Daphne and Niles are alone on a balcony together, Daphne attempts to express her true feelings over learning about his feelings for her, but can't get the words out before Niles asks her to return the gift he gave her (which was originally meant for Mel, who had changed her mind and was indeed coming).
- Christmas Episode: Frasier's Christmas party is an important part of the episode.
- Internal Reveal: After the last episode's ending, Daphne gets Roz to confirm that Niles had been crushing on her before his current relationship, while Frasier (who forgot what he said while taking painkillers) and Martin think they've kept the secret.
- Mistaken for Cheating: Mel's relationship with Niles ends up briefly scuttered after Niles keeps it a secret (and Frasier then accidentally reveals) that he visited Maris. They get back together when Niles explains it was to help Maris grieve over the death of their old gardener.
- Mistaken for Romance: When Daphne learns of Mel arguing with Niles over "another woman", combined with Niles gifting Daphne jewelry he meant for Mel after Martin breaks Daphne's original gift, it leads to Daphne thinking that Niles is following through with his feelings for her.
- Sitcom Arch-Nemesis: Frasier planned to settle bygones with upstairs neighbor Cam Winston at his party, only to learn that Cam is hosting an even bigger party that's syphoned all of his guests.
