Cage and Fish's firm gets a capital case to defend a man accused of murdering his comatose wife. He insists he fired up the chainsaw and cut off her hand after she was dead. Renee, who is prosecuting, has the testimony of the coroner who thinks the wife was alive and that the amateur surgery gave her a heart attack. Meanwhile, Billy and Georgia continue to patch up their marriage after Billy's indiscretion with Ally. Both of them are working on a case in which they are representing a man suing to get his job back with an insurance company who fired him over a bad hair day.

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.

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.

The first case Georgia brings to Renee's new firm pits them against Cage and Fish. Georgia defends Newman's, an upscale department store against Steve Mallory, who worked as the store's Santa for seventeen years. Cage represents Mallory, who claims that he was wrongfully fired because Newman wants to hire a younger, thinner Santa. Meanwhile, Ally is haunted by visions of herself as a little girl. Ally manages to bring Georgia and Billy together to talk, and Billy sees that he wants Georgia back. But Georgia is not as eager to work things out yet.

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.

Ally has a romantic dream about Cage and wakes up thinking that he may be the one for her. When she finally gets up the courage to tell him, he admits that he often thought she might be the one for him also. Meanwhile, Elaine goes on a date with a great guy only to learn that he asked her out because his friend said she was easy.

Georgia blames "Cage & Fish" for the new Billy, and is suing the firm for the break-up of their marriage. She cites many issues as leading to Billy's breakdown and the ultimate dissolution of their marriage. However, during the court hearing they discover that the root of the problem lies elsewhere.