It's Christmas in Matlock season 2 episode 8, but that doesn't mean everything and everything is jolly. Last week's episode, the failed coup forced Matty and Olympia to regroup and figure out a new strategy in order to take down Senior. Their new plan involves the NDA and SD card that Julian was able to steal from his father and could lead to more information about the Wellbrexa case.
But as the team takes on a harassment case in "Call It a Christmas Gift," the team will also be navigating some secrets coming to light. After Sarah's guilty conscience about snooping on Julian nearly caused her to confess last week, it seems as though she might finally be ready to admit what she did to Olympia. As we know, Olympia doesn't have much lenience for liars anymore.
Matlock season 2's midseason finale will surely be one to remember before bidding us farewell until next year. Let's dive right into a recap of season 2 episode 8!

Senior has an unexpected health crisis
Matty, Olympia, Edwin, and Alfie look at the over 1,000 photos that Debra Palmer took on the Australia trip with the intention who else was there. It takes them a while, but they finally organize the photos and narrow them down to identify the people in them. In order to cover their bases, Julian put the SD card back, and like a Christmas miracle, they identified all 13 members on the trip. Next up, find out who went with Senior to the Opera House.
When they arrive at the office, Senior's cold to Matty and Olympia when Olympia says good morning and offers small talk about the merger meeting. Sara continues to feel guilty about spying on Julian's datebook. She calls Billy but deletes her message. The merger meeting gets canceled, which spooks Matty and Olympia. Julian finally calls Olympia and breaks the news that Senior had a stroke.
Alfie spots Senior with the Wellbrexa document in one of the photos from Australia, which is quite the smoking gun but at an inopportune time. Olympia joins Julian at the hospital, and he's not handling the situation well even though his relationship with his dad is strained. Matty takes over leading the fire department harassment case for Olympia. Matty approaches Olympia about comparing the Wellbrexa document to the original, but it causes an awkward moment.

Sarah confesses the truth to Olympia, Julian catches Matty
Julian addresses the company to announce Senior's condition and introduce his temporary replacement. Sarah learns that Senior increased her Christmas bonus, which only makes her feel worse guilt. Julian informs Olympia that he looked through Senior's phone and found a contact named Australia. He feels bad, but he's glad to have helped Olympia. She's conflicted with gaining this new information considering Senior's current state.
Matty uses a burner phone to call the Australia number, but it was just the hotel that the team stayed at. While investigating for the case, a drunk Sarah asks Matty about her holiday bonus and how she feels guilty about the amount. Julian talks to Senior while he's unconscious per everyone's recommendation, and he speaks from the heart. Olympia brings the Wellbrexa document to Matty's to compare to the photo, but it's not a match. She doesn't allow she and Edwin to hang onto it.
Unfortunately, Matty and Olympia don't win the fire department harassment case, and this inspires Sarah to tell Olympia the truth about helping Senior spy on Julian. She promises Olympia that nothing like this will ever happen again, and Olympia agrees. She's moving Sarah off her team because she can no longer trust her. Billy calls Sarah and reveals Claudia had a miscarriage. Olympia gives Matty the Wellbrexa document to hold onto. She believes Matty should hold someone accountable.
From outside the brownstone, Julian spots the exchange. He also planted the fake Australia number and heard Matty call. It's also revealed that Julian dropped one of his AirPods in Olympia's bag at the hospital to spy on her. That's how he knew she was meeting Matty. What a twist!

We've already seen the last of Billy in Matlock season 2
According to an update from showrunner Jennie Snyder Urman, Daniel Del Rio's last episode of Matlock season 2 after being fired has already aired. Del Rio doesn't appear in the midseason finale as Billy as the character and actor's final episode of the season and show was episode 7.
Snyder Urman explained what she could about the situation to Deadline: "I’m not going to discuss details, but what I can talk about is in terms of the show. The last episode you see him is in 7, and then you find out how Billy’s story ends, which is in a very organic way that has to do with our whole office and how things are being shaped in this merger."
When the show returns in February 2026, Henry Haber joins the cast as a new associate named Hunter that Snyder Urman describes as a "bro." Sarah Wright Olsen also joins the cast as a new character named Gwen, who's an efficiency expert taking a look at the firm.
Matlock season 2 returns on Thursday, Feb. 26 at 9/8c on CBS.
