- It is Christmas and The Joker is on the loose. As he is terrorizing a family, he see a newspaper headline about the serial killer now labeled as "Holiday" and feels rage.
- In Arkham Asylum, James Gordon and Batman talk to Calendar Man (Julian Day) about the Holiday killer. Day doesn't seem very helpful, he says the killer is a woman but at the same time a man?
- Gordon notes theres more and stranger criminals now that Batman is around.
- Batman leaves to deal with the Joker.
- At Sal Maroni's restaurant, Maroni is having dinner when one of his henchmen suddenly dies of Joker venom. Joker appears and points a gun at Maroni. Joker asks him about the Holiday killer and Maroni say he doesn't know anything. Joker leaves.
- Batman arrives at the scene. Batman asks Maroni what happened. Maroni tells him. Maroni also points out that the city is filled with lunatics since Batman appeared.
- Elsewhere, Harvey and Gilda Dent arrive at their new house, but the Joker is already there. Joker warns Harvey that if he finds out that the rumors about him being the holiday killer are true, he won't be as forgiving the next. Joker leaves.
- Later, at Falcone's penthouse, Carmine Falcone is awakened by The Joker. Joker tells Falcone to find the holiday killer, or he'll Gotham until he finds out who is it. Joker Leaves.
- Someone shoots Milos Grapa, Falcone's personal bodyguard. The killer leaves the gun and a snow globe in the crime scene.
- Batman arrives. He sees the gun, snow globe and playing cards, and promises to capture the Joker.
