Episode 12 of Not Dead Yet kicks off with a tense surveillance mission. Nell, Sam, and Edward are covertly staking out Phillip from across the street, their curiosity piqued by his mysterious presence in Pasadena and his failure to inform Nell of his arrival. Edward, tasked with casually extracting answers, bungles the mission, accidentally exposing Nell and Sam's covert operation.
As Nell and Sam head to work, Nell encounters her new spectral companion, Janice. Janice, a diligent mailwoman who never takes a day off, introduces herself with a warm smile. As they bond, Nell receives a perplexing text from Phillip, requesting a meeting. Sam, wary of Phillip's intentions, tries to dissuade Nell, but she insists on seeking closure.
Meanwhile, Sam is busy collaborating with Lexi to plan a joint birthday bash for their daughters. Kendall, Lexi's daughter, dreams of a fun work-themed party, while Tilly, Sam's daughter, yearns for a fairytale princess celebration. After much deliberation, they strike a compromise, agreeing to host both parties in the office. Sam, forced to stay late to decorate, entrusts Edward with the task of supervising Nell's encounter with Phillip.
Later, in a tense confrontation, Nell confronts Phillip in search of closure. Phillip offers a heartfelt apology for his past mistakes, surprising Nell. But the mood quickly turns sour when Phillip calls her out on her own abrupt departure, revealing that she had packed up and left without saying goodbye. Nell, defensive and angry, storms out of the meeting.
Later, venting to Sam, Nell reluctantly acknowledges her role in the failed relationship. Sam, wise as always, points out the error of her ways, but Nell stubbornly refuses to apologize. Janice, ever the voice of reason, gently reminds Nell that an apology could set her free to move on.
The following day, Nell ventures to visit Phillip and discovers his temporary storefront shuttered. Her spirits sink as she had hoped to engage in conversation with Phillip, prompting Janice to offer her a morale boost.
Meanwhile, the children gather for their celebration, and Tilly faces a challenging situation as Kendall has lavishly bribed their peers to pretend they are enamored with her office bash. Nell resolves to intervene and lend a helping hand to Tilly, transforming herself into a regal princess.
Elsewhere, Sam confronts Lexi regarding the party and Kendall's antics. Lexi confesses that she pampers Kendall due to her fear of witnessing her daughter's displeasure. She fears that denying Kendall's wishes would signify her failure as a mother. Lexi vows to have a heart-to-heart with Kendall, resulting in Tilly finally realizing her dream of a princess party.
Unexpectedly, Phillip strolls into the office, and Nell is startled to see him return. She apologizes for her hasty departure, earning Janice's admiration. Phillip admits that he still harbors feelings for Nell and desires to mend their rift. He reveals that he is attending therapy and strives to become a better man. Phillip pleads with Nell to grant him a second chance and vows to stay for a while. Nell deems it a favorable prospect, yet Sam remains unenthusiastic about their reunion. Regardless, the children thoroughly enjoy their party, and Sam and Lexi feel a sense of pride.
