"Christmas" is the thirteenth episode of the third season and the fifty-seventh episode overall. It originally aired on December 18, 1996.
- It's Christmas time and the Salinger's grandfather Jake Gordon comes back. Charlie decides to get rid of all Kristen's stuff left so he can finally move on with his life. He tries to help a homeless man at the restaurant find a job and place to live, but learns that the man also suffers from the same mental illness just like Kristen. Sarah and Callie are away for the holidays. Bailey, alienated with his family, wants to spend Christmas all by himself, but Coach Petrocelli doesn't let him and instead asks Bailey over to his place to watch wrestling on TV where they bond by talking about Bailey's dead parents and Petrocelli's failed marriage and a daughter who never calls or writes. Meanwhile, Julia notices that Jake can't see very well and he tells her he's going blind. Charlie sees him leaving early Christmas morning and Jake says he has to go for a chemotherapy appointment for cancer and he doesn't want to be a burden on them anymore. Julia asks Bailey to spend Christmas in the house and he brings Coach Petrocelli with him since Coach's daughter is not coming to visit anymore. Stuart gives Claudia a very expensive gift and she tries to give him a bad gift, but he loves it. She tells him that she doesn't like him in that way, and he gets mad, but apologizes and stay over for Christmas dinner. Grace shows up and Charlie invites her to stay, and they all happily celebrate Christmas my.