Episode Recap: The Greatest Gift

Explosions. Screams. Etc. Pete and Myka are on the job, saving a family from living Christmas decorations created by an artifact in the shape of Rudolph's nose. They bag and tag the item in question and return to the Warehouse, where Pete is tasked by Artie with filing the offensive schnoz in the Christmas aisle. As he's doing so, he slips, and a couple of artifacts fall. Thinking nothing of it, Pete refiles them and returns to the office.

There, he finds two strange faces, and an even stranger sight: MacPherson, in charge of the Warehouse! What's worse, no one seems to know who he is, and there's no record of his existence. They take him to Leena's, where the proprietress has no knowledge of him, either...but Pete uses a moment of distraction to knock out his captor and escape. His first stop? Washington, DC, to find Myka.

Unfortunately, she doesn't know him, either, but Pete appeals to her love for her father who, in this reality, has died because Pete and Myka weren't there to save him. On a hunch, she takes him to see Artie, who is in prison after the incident with the bloodstone. Artie knows something's going on given Pete's knowledge of the Warehouse, and after hearing Pete's story, deduces that he's had a run-in with Philip Van Doren Stern's upholstery brush - thanks to the author's story It's a Wonderful Life, in which a man gets to see what it was like to have never been born, anyone who comes into contact with the brush is literally swept out of existence. In this world, there is no Pete Lattimer. Zounds!

The only solution is to break into the Warehouse and get the brush back, and Pete knows just who can help: Claudia Donovan. So, it's off to the psych ward where this reality's Claudia is being kept. After springing her and avoiding near-capture by the Warehouse's new agents, the team then breaks into Leena's in search of the the palladium necklace that will allow the exiled Artie to re-enter the Warehouse. Leena confronts them, but her love for Artie leads her to help them out, and she gives the former Warehouse custodian the artifact he needs. The reunited team then breaks into the Warehouse through the back door, and just in time, as MacPherson has had Mrs. Frederic bronzed and is setting a trap for them.

The trap is sprung when Pete and Myka, in seeking out the Christmas aisle, become ensnared in an infinity loop. Only by tapping into their old teamwork and running in opposite directions can they break it but, by the time they do, Artie and Claudia have been captured by the new agents and taken to the Bronze Sector. Only a timely intervention by Pete, wielding Brigadier General Laverlong's Elephant Walking Stick‎, keeps them from being encased, and with the cronies knocked out, the team moves on to MacPherson, who has taken the brush and other artifacts from the Christmas aisle to the giant furnace that fuels the Warehouse. Artie scuffles with the evil agent, and though he sacrifices his life, he's able to throw the brush to Pete, who makes a diving grab for it over the red-hot flames of the furnace...

...And wakes up back in the Christmas aisle! A second contact with the brush has returned everything to normal, and Pete runs joyously to Leena's, where he finds the whole gang gathered together thanks to a freak blizzard that has canceled everyone's holiday travel plans. As Pete celebrates being alive, Artie enters with some of his famous cookies, and the assembled family gathers together on the couch, to watch a traditional Christmas broadcast...of It's a Wonderful Life!