Gloria informs Michael and Lauren that she is moving back into the Abbott mansion. Michael and Lauren think Gloria is crazy for doing so. Meanwhile, at the Abbott mansion, Sharon is meeting with a famous interior designer when Jack comes home. Jack tells Sharon Gloria is moving back in, and Sharon is not pleased.
Nick gets ready to meet indie-rocker Katy Perry's manager in order to get her on the cover of the next issue of Restless Style. Amber suggests to Nick and Phyllis that Katy could wear one of her designs. Later, Nick notices Amber misses Daniel when Katy's manager arrives.
At the gym, Adam and Heather are the only two working out. They kiss passionately. Phyllis enters and is shocked to see Adam isn't interested in her anymore.
Chloe continues to pretend to be sick when Cane arrives to bring her some ginger-ale. Cane asks Chloe about Lily's possibility of becoming a super-model, and Chloe tries to plant some seeds of doubt into his mind, but Cane is determined to do everything he can to help Lily succeed.
Michael tells Gloria about how he thinks life in the Abbott mansion will be, but she decides to go anyway. Gloria thinks Michael will actually miss her when she is gone. After Gloria leaves, Michael tells Lauren he punched Jeff in order to defend Gloria.
At the Abbott mansion, Sharon is irate that Jack made such a big decision without her input. Jack is adamant that having Gloria live with them is the right thing to do, but Sharon is very skeptical. She wonders how they are going to tell Noah Gloria is moving back in. Later, when Sharon is making decorating decisions with the interior decorator, Gloria enters the Abbott mansion with her portrait.
Phyllis' ego is wounded when she realizes Adam doesn't have any interest for her anymore. She notices Heather give Adam her room key.
Chloe begins moving in on Cane, but Lily and Devon come home, putting an end to Chloe's alone time with Cane. Chloe acts furious about Lily not making her plane to New York, but she is really furious that she didn't get to spend more time alone with Cane. Lily and Cane talk about going out on a date, but thinking Chloe is still sick, they decide to stay home with her. Chloe is not thrilled about all of this.
Ivo, Katy's manager, pushes Nick to make a deal with him right away. He insists that Restless Style include a demo of Katy's music with the magazine or there is no deal. Nick agrees. Later, at the gym, Nick tells Phyllis he signed Katy for the cover, but didn't discuss it with Jack or Sharon. They agree Jack and Sharon are going to be mad.
Gloria is disappointed to learn she will be staying in the pool house with Fisher. Later on, she thanks Jack and Sharon for letting her move back to the mansion. Jack is touched by her gratitude, but Sharon remains angry about the situation.
Chloe feels miserable while Devon plays video games, and Lily orders pizza. She tries to get some pizza, but Lily insists she only eat chicken soup. Chloe pouts. Meanwhile, Cane stops by Restless Style and runs into Amber. He talks about Lily's modeling career and how it is becoming successful. Amber feels bad about herself again; she feels like a failure.
After reading to Fen, Michael talks to Lauren about how worried he is about the kind of father he is to his son. Lauren reassures him that he is a great father. Michael reveals he fantasizes about having a better mother for himself.
Sharon continues to be angry with Jack. After she leaves the room, John's ghost appears to Jack. John says he is truly proud of his son, and that Jack is doing the right thing by allowing Gloria to move back to the mansion. John and Jack both tell one another how much they have missed each other.