Ted wakes up, hung over; Lila has left their act to marry a millionaire in Texas; he cannot remember who he danced with before passing out, but he decides she must be his new dance partner. Jim, worried that Ted will steal Linda from him, pretends not to have seen Ted's new partner. Ted sets out to dance with every woman he sees, trying to track down the right one ("You're Easy to Dance With"). Linda is humiliated by Jim and Ted's behavior; Jim apologizes and offers to start over ("Let's Take an Old-Fashioned Walk"). She agrees to give him another chance, and in time they begin a relationship.
By the Valentine's Day show, Jim loves Linda, and he writes a song about her for the Inn ("Be Careful, It's My Heart"). While he sings it to her, Ted walks in, realizes Linda is the girl he seeks. Jim objects that he does not want Ted to steal Linda from him, but Ted and Linda reassure him and perform together for the first time, headlining the performance. Jim cues the band to change style and tempo several times, attempting to prevent Ted and Linda from getting too close to each other ("Cheek to Cheek"). Jim apologizes for sabotaging the number, but he does so again in the Easter show the following month by entering at the end of the song and singing with Linda and Ted ("Easter Parade"). Ted asks Danny to put an end to Jim's meddling. Danny reveals to Ted that two Hollywood producers are interested in putting Ted and Lila in a movie, and they will attend the next Holiday Inn performance. Louise hears this and calls Lila, asking her to come to the Inn.
As Linda prepares for the Independence Day performance ("Song of Freedom"), Louise locks her in the barn to prevent the producers from seeing her. With Linda missing, Ted performs a solo tap number with fireworks ("Let's Say It With Firecrackers"). Lila enters the barn, revealing that the man she left Ted for owed millions rather than owning them, and, not knowing who Linda is, she mentions the producers. Linda assumes Jim has sabotaged her again and locks Lila in the barn, returning to the Inn to join Ted for the end of his number. As they exit the stage, Linda confronts Jim, but he has no knowledge of the producers nor of Lila's presence, and Louise admits she orchestrated the sabotage. As Linda forgives Jim, Danny reveals that the producers want to make a movie about Holiday Inn, starring Ted and Linda with Jim as a songwriter and consultant, but Jim wants to stay at the Inn. Linda is hurt by Jim's stoicism and leaves with Ted to make the movie ("Nothing More to Say" (reprise)).
Jim and Louise spend another Thanksgiving alone; with no headliners, they cancel the Holiday Inn shows. Jim finally decides to find Linda in Hollywood. On the set of the movie, Linda is having a tough time with the fictionalization of the story, interrupting shots and proving difficult for the director and producers to work with. As she sings "White Christmas," Jim enters the studio and sings with her. As the production halts, Jim proposes to Linda. She accepts, quitting the film to be with him. Danny objects, but Ted lets her go. It is early in production, and Linda is replaced by Lila. Later in Midville, Ted and Lila reunite, and Linda and Jim are married on the farm, vowing to continue performing at the Inn ("Finale").
((There you have it. You all know the drill. Add your posts below, and have fun!))