Now that Nick knows about Blue’s connection to VBS (Very Bad Santa) he formulates a plan to negotiate for Hailey’s release. But first he has to find a place to stash Mikey, who is more than just a figment of his imagination... and still naked as a jay bird.

Nick turns to the church in his hour of need...

A despondent Happy takes solace in the welcoming arms of another imaginary friend while the missing children are further terrorized by Smoothie.