Whilst getting themselves into some manner of trouble in the marketplace of Jerusalem, the three protagonists learn about the arrival of the angel Gabriel to the Virgin Mary. They know that the time of Jesus' birth will be soon. As they are doing their thing, King Herod is going hysterical over the notion of a new king arriving. He passes his time meanwhile by taunting others with his monkey.
Along with the story of Esther and Noah's Ark, The Nativity is one of three episodes in which the travelers' use of 20th century terms leaves the locals confused (Margo makes a reference to "soft drink cans", which the camel-owner questions).
When the Magi arrive at Herod's palace, he tries to trick them into giving away the location of the baby Jesus. The plan fails when the Magi decide not to return to Herod. The time travelers follow Mary and Joseph from a distance on their way to Bethlehem. They do not get directly involved in the manger scene until all the potential threats to Jesus have left.
