Ashley Gorrell

As Christmas nears, Mitch and Tracy fall in love. Mitch and Hobie let a lost boy stay with them during the holidays, only to discover he's a con artist. C.J. believes a priest has developed romantic feelings for her. Matt suspects that a group of vacationing little people are really Santa's elves.

At Christmas, Mitch tries to reunite Joey with her mother; C.J. worries that a priest is leaving the church for her and Matt investigates whether Santa's elves are really vacationing at Baywatch.

Matt Brody returns to Baywatch to try to make up his lost relationship with C.J. But things take an unexpected turn when a group of ruthless modern day pirates take a millionaire couple hostage and place them under water on the wreck of the sunken oil platform with a few hours of air. When Matt and Neely speed by in their Scarab motorboat, the pirates take them hostage as well. Meanwhile, Joey's past may jeopardize her adoption to Mitch when a professional beatnik criminal, named Trapper, recruits an unwilling Joey to commit a burglary job as payback for her mother's past scams against him.

C.J. returns to Baywatch after a vacation in Europe and immediately goes on a girls junior lifeguard trip to Catalina with Stephanie, Caroline, and even the devious Neely tags along where they try to teach the girls the values of teamwork after two of them get trapped in an underwater cave. Meanwhile, Mitch gains an adopted daughter when Joey Jennings, the young con artist from 'Silent Night, Baywatch Night', comes to live with him and Hobie after her mother suddenly dies, and who dreams of becoming a lifeguard like Mitch.

Stephanie is recruiting lifeguards for the annual Lifeguard Sailing Regatta where they will compete with the lifeguards of South Bay. Stephanie, Caroline, Cody, Newman and Barnett sign on, including Neely who reveals that she has a personal grudge against the lifeguard in charge of the South Bay team, Kurt Daniels, who was her former boyfriend and Neely is determined to win the race to get back at him at any cost. Meanwhile, Mitch's PI boss, Ryan McBride, reveals that Joey has grandparents from back east, who arrive in town wanting permanent custody of Joey, and Mitch must decide whether to fight a messy courtroom battle to keep Joey (as he did with Gayle over Hobie) or let her go for good.