Air date: 12/16/84

It's getting close to a very special day - Punky and Henry's first Christmas together, and Punky is saddened that it will be her first Christmas without her mother Susan. When Henry tells Punky about some of his childhood memories of Christmas, Punky tells him that she misses Susan. At school, a bully named Billy Bahootsas tells Punky and her friends that there is no Santa Claus, and after Punky gets home from school, Henry tells Punky that Santa is real and can do anything, but Punky is still not convinced, and neither is Cherie. While Punky and Cherie are out of earshot, Henry tells Betty that there has to be a way to convince them, which gives Betty an idea - Betty tells Henry that the school is having an awful hard time trying to find someone to play as Santa for Punky's class, and Betty suggests that Henry be Santa for Punky's class. With a little coaxing from Betty, a reluctant Henry agrees. At the school, Santa shows up at Punky's class, and none of the kids know that it's really Henry. When it's Punky's turn to talk to Santa, she asks Santa for just one precious gift - her mother Susan. Later, at the photography studio, as Betty helps Henry out of the Santa suit, Henry vows to find Susan.

Yes, Punky, There is a Santa Claus – Part 2

Air date: 12/16/84

Henry begins his search for Susan. After Punky puts a gift under the tree for Susan, Henry's detective friend Gene Doucette calls, giving Henry a promising lead that there is a woman named Susan who is in the hospital suffering from exposure, and she fits Susan Brewster's description. Henry heads to the hospital, and it turns out that she's not Susan Brewster - it's comically hinted that she's a prostitute. While Henry is on his way home, a blizzard sidetracks him on Michigan Avenue at Nick's Nook, an antiques store run by an old man named Nick, and there is something about Nick - especially since this is the part of Chicago that Henry was raised in, and Henry does not remember Nick's Nook ever existing on Michigan Avenue. Nick tells Henry that miracles can happen, and he offers to give Henry a free jewelry box for Punky, but Henry turns it down. On Christmas morning, Punky wakes up, and she can't find her mother in the apartment...but when she opens her gifts, she notices a gift that wasn't there before. It's from Santa, and it's a jewelry box just like the one Nick tried to give Henry, and Punky knows it's Susan's jewelry box because Susan's initials are on it. Also, Punky's gift to Susan is missing. Punky understands that Susan couldn't be there, so Santa took the gift to Susan and left the jewelry box for Punky, who has a great Christmas after all. On a hunch, Henry calls information, and he asks for the phone number of Nick's Nook, but he's told that Nick's Nook doesn't exist. Henry is now convinced that Nick was Santa.

Punky in the Record Business

Air date: 1/20/85

Hip young music teacher Tony Glen succeeds where Henry has failed - teaching Punky how to play the piano. Tony's contemporary approach wows Punky, and leaves Henry feeling out of touch with Punky's generation. While teaching Punky, Tony performs an original creation of his. After receiving compliments from Punky, Tony decides to record his music for release with the help of recording executive Lonnie Dell, the owner of a record company known as Dell Star, but it turns out that Mr. Dell is a crook. When Tony auditions, Mr. Dell says he'll cancel a recording session with Prince, and work with Tony for $2,500 cash. A suspicious Henry auditions - after secretly turning Mr. Dell's intercom on so Tony and Punky can hear it - and Mr. Dell says the exact same thing to Henry that he said to Tony, and this proves that Mr. Dell likes to take advantage of people's dreams and con people out of their money. Henry still feels out of touch with Punky's generation, but Punky assures Henry that he's fine just the way he is, and a grateful Tony agrees to give Punky some free piano lessons.

Henry Falls in Love – Part 1

Air date: 1/27/85

Punky is hoping for a complete family when Henry is reunited with his high school sweetheart Maggie McLerie, who is now one of the richest people in Chicago. Punky eagerly sets up a re-creation of their last date to help Henry out, and it works, as Henry proposes. Punky's hopes begin to fade when Henry and Maggie get into an argument over Punky - if Maggie and Henry get married, Maggie wants to put Punky in a boarding school so Maggie and Henry can travel the world, but Henry is against the idea of putting Punky in a boarding school. Punky decides to leave and take Brandon with her so she won't be in the way of Henry and Maggie getting married.

Henry Falls in Love – Part 2

Air date: 2/3/85

Running away so Henry and Maggie can get married, Punky says goodbye to Cherie, planning to go out west. Henry and Maggie soon discover Punky's disappearance, and all other plans are quickly put aside to search for her. As for Punky herself, she comes close to succumbing to the cold before Brandon discovers a junkyard shack. Punky suspects that it's a little too well set up to be abandoned, and she's right, as its occupant soon makes himself known. Teenager Zack, a runaway himself, doesn't understand Punky's reasons for running away at all, and after she falls asleep, he uses the phone number on Brandon's dog tag to alert Henry and Maggie. Henry and Maggie arrive and announce that the marriage won't happen after all, and they convince Zack to go home to his family.