The arrival of two high-dependency patients from the Intensive Care Unit and an incompetent agency nurse increase the stress and workload in Ward 17. Despite his reassurances to Terri, Peter has trouble dealing with Raelene Gregson, a difficult patient who he blames for setting in motion the events leading up to his wife's death. Von feels betrayed when she learns a young woman deceived her about how she contracted her illness. Jared covers for an overworked colleague's mistake but a second error results in him filing an incident report. Bron and Luke's relationship is made public much to their friends' delight.

Luke is put through the wringer when a patient deteriorates before his eyes. Jared learns more harsh truths when he finds Angie working as a prostitute. Terri realises that Peter is nowhere near as settled as he appears in the aftermath of his wife Jenny's death. Realising she's not the person to talk to Peter, Terri asks Sophie for her help. While Von has trouble keeping her patients alive, Stephanie is taken aback by a family celebrating the death of a loved one.

Terri fills in as Assistant Director of Nursing for the day, leaving Steph responsible for Ward 17. Steph is emotionally tested when a young woman is admitted after a botched backstreet abortion. While nursing the young woman who undergoes a hysterectomy, Steph questions the importance of children in her own marriage following the loss of her pregnancy. After turning down Bob Parkin as a surgical candidate, Professor Craig forces Bron into making a huge sacrifice. Von suspects there is more to an elderly man's health than meets the eye and Jared literally saves a patient's life.

The 1998 season finale is packed with emotion when Ward 17 celebrates Christmas. A sick child hopes that her Christmas wish will come true; an elderly man asks Santa for a special gift for his ailing wife; Von learns the true meaning of Christmas; a homeless man goes to great lengths to stay in All Saints for Christmas dinner and Bron is in for a surprise at the Ward 17 Christmas party. Sophie is faced with the possibility of losing custody of her children to her father-in-law. Connor has decided it is finally time to tell Bron how he feels while Jared and Jaz receive test results.