Diesel now meets up with two other ghostly engines. The Ghost of Christmas Present and the Ghost of Christmas Future, and he later finds Sir Topham Hatt still at Knapford during the Earl's Christmas party at Ulfstead Castle.
Thomas is sent to take a special crate to the Town Square from the docks, but Cranky accidentally drops the crate.
Kevin gets stuck out in the snow, and Victor goes out looking for him, despite his hatred of snow.
Toby accidentally runs out of coal at the scrapyards, leaving the engines to think he's going to be scrapped.
Sir Topham Hatt is anxious as two grumpy inspectors have come to inspect the railway, starting with Thomas. To prevent an even worse report, Thomas helps return the lost pocket watch to the railway inspector.
After he sees Sir Topham Hatt's grandchildren with chickenpox, Henry worries about catching the disease himself.
Toad spots a stranded whale on the beach, but Oliver does not take him seriously.
Percy doesn't notice his sheep jumping out of his cattle truck.
Henry becomes paranoid of meeting an abominable snowman after Spencer teases him about it.
Salty's imagination runs away with him as he worries about going to the Mainland by sea.
Diesel starts causing trouble at Christmas time and he gets visited by the Ghost of Christmas Past.
Mavis has an accident at Ffarquhar Quarry and is sent to the Dieselworks. Den is sent to take her place, while Dart has to stay at the Dieselworks. However, the two always work together and they fear to be without the other.
Thomas feels guilty about causing Hiro to have an accident. To make up for it, Thomas ventures into Hiro's old hideout to see if he can try to salvage some left behind parts.
Stephen is a slow engine, but one day, when the Sodor Suspension Bridge collapses, he tries to stop Gordon from crossing the bridge.
Thomas, Spencer, and Bertie argue over how many wheels are best.
Thomas and James compete with each other to see who can get to Dryaw first.
Emily idolises Caitlin when she sees how fast Caitlin can go.
A new diesel boxcab named Philip arrives. Loving to race, he thinks he's racing Gordon when in actuality Gordon never took part.
James is determined to prove himself stronger than Philip, but he ends up crashing on the stone bridge.
A mother and her noisy baby want to have a ride on Thomas' train, but the baby keeps crying which leads to irritation to Thomas, Annie, Clarabel, and the passengers.
Rocky ends up derailing and the Search and Rescue Team have to work together to put him back on the rails again.
Thomas discovers Bertie's been rerouted to behind the other side of the mountain, making Thomas curious as to what's there.
Bill and Ben say that Timothy is no help at all and send him to help Cranky & Porter at the docks.
Percy overhears some workmen talking and thinks Sir Topham Hatt is leaving Sodor, so he and the other engines go on strike at Tidmouth Sheds.
Diesel is jealous of Percy's job to collect the Mayor of Sodor, so he directs Percy to an old disused quarry while he takes him himself.