After a sedated Frasier spills the beans about Niles’ long-standing crush on Daphne, she receives confirmation from Roz that the rumor is true. Ironically, after six years of unrequited love, Niles appears to have moved on wi th Mel, leaving Daphne in a state of confusion. Yet, when Niles consoles Maris after the death of a friend, he hides the news from Mel, fearing she’ll be jealous.

Meanwhile, Frasier plans a big holiday bash, to which he’s invited all of his neighbors but none of his co-w orkers. At the station Christmas party, Frasier blow s the news about Niles’ visit with Maris to Mel, which causes Mel to stomp out. Furious with his brother, Niles blurts out the scoop on Frasier’s event, which causes him to incur nasty glances from his KACL comrades.

Frasier’s party goes bust after a competitive neighbor hosts a get-together on the same night. When Daphne hears that Mel has dumped Niles, she fears she’s the cause for the split. Eventually, Mel forgives Niles and turns up at Frasier’s party, where Daphne wistfully eyes the reconciled couple—feeling torn between Niles and her fiancé, Donny.