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2.12: It's a WOnderful Lie
For the annual Snowflake Ball, Blair (Leighton Meester) and Chuck (Ed Westwick) make a bet that they can find the ideal dates for each other. Aaron’s (John Patrick Amedori) ex-girlfriend, Lexi (guest star Natalie Knepp), expresses an interest in Dan (Penn Badgley) which creates conflicted feelings for Serena (Blake Lively). Nate (Chace Crawford), Jenny (Taylor Momsen) and Vanessa (Jessica Szohr) get into a tangled situation that puts their friendships and hearts on the line. .
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Episode Synopsis: After surviving the on-again/off-again nature of their new relationship, Serena and Dan finally acknowledge they are crazy about each other, despite their polar opposite worlds that constantly threaten to pull them apart. Dan tries to treat Serena to a romantic evening alone. Chuck contemplates investing in a burlesque club in the hopes of making his hard-to-please father proud of him. Only to confuse his father's and Lily's relationship and making Lily's and Rufus' relationship go further. Nate confronts his father about the drugs he found in the house, but his father denies having a problem. Jenny discovers a secret her father, Rufus, and mother, Alison, have been keeping from her. Finally, Blair is once again devastated by Nate's actions after Jenny reveals that Nate kissed her by accident thinking she was Serena. After Blair confronts Nate about Jenny's confession, her relationship with Chuck heats up.

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	Clip one: Dan and Serena make out in the school courtyard.
	Clip two: Blair and Serena talk about the progress of Dan and Serena's relationship.
	Clip three: Dan's anxiety haunts him in the form of a dream.
	Clip four:Dan and Serena have the Humphrey apartment all to themselves. Or so they think.
	Clip five: Dan has another dream where; Nate and Serena are getting it on in the Humphrey apartment and he's watching them and asking them questions, lol.
	Clip six: Dan surprises Serena. And they finally admit that they're crazy about eachother.