Years have passed since Emma's death, and Aurora Greenway, Shirley MacLaine, remains her formidable, willful self, but life around her has grown more complicated. The three grandchildren she raised after Emma's death are navigating adulthood in their own ways: elder Tommy Horton, George Newbern, is in jail on a drug charge; Teddy Horton, Mackenzie Astin, now has a girlfriend and a son; and Melanie Horton, Juliette Lewis, the youngest and only girl, still lives with Aurora but is thinking about moving out. Aurora's only true companion is housekeeper Rosie, Marion Ross, especially now that a man she has been seeing, the General, is a friend, not a romance.
Her late daughter's old friend Patsy, Miranda Richardson, still has a home in Houston and acts as a quasi-friend counselor to Melanie, which irks Aurora. When Melanie's relationship falters after catching her boyfriend cheating, she tries to overdose on Patsy's muscle relaxants, but eventually moves to Los Angeles with the same boyfriend for a fresh start.
Rosie is courted by Arthur, Ben Johnson, who has bought the former home of astronaut Garrett Breedlove next door. Seeing how lonely Aurora appears to be, Rosie arranges for her to see a licensed counselor, Jerry, to whom Aurora admits she is still seeking "the love of my life." She begins to chronicle her life in scrapbooks, which helps ease her loneliness. Jerry and Aurora begin a romantic relationship; however, Jerry also has a fling with Patsy, which Aurora discovers. She ends the relationship after realizing it centers around Jerry's long-unresolved Oedipus complex issues.
After many visits to Tommy in prison, Aurora finally reaches him through scrapbook pages of him with his mother Emma from his childhood, helping to heal their anger and mend their relationship.
Needing a new cause, Aurora is frustrated when Melanie decides to stay in Los Angeles to try to become an actress, while Patsy pursues a similar path. Melanie succeeds in landing a role on a television show, which Aurora and Patsy celebrate, but they end up fighting on the flight home.
When Aurora returns, she learns Rosie is critically ill. Against Arthur's wishes, she carries Rosie home to the Greenway house and tends to her until she dies. Arthur brings Rosie's ashes to Aurora, asking her to do what she thinks best in Rosie's memory.
A few days later, Aurora writes in her diary in the backyard gazebo by Rosie's urn when Garrett visits and lifts her spirits. He urges her to find her one true love, quipping that "there aren't that many shopping days left till Christmas."
Tommy is released from prison, and he and Aurora share a heartfelt embrace. He lands a promising job after computer classes, starts a family with his new girlfriend, and their child Henry is doted on by Aurora, who teaches him piano and even music lessons.
Scrapbooks fill year after year, until one day Aurora suffers a stroke while teaching Henry the piano. She slows down but the family grows closer, with Patsy spending much time with her. They eventually make peace after years of battles over loving the same family. At Christmastime, Aurora is bedridden but surrounded by grandchildren and friends as she passes away, softly calling out to Emma. The final image shows young Henry playing the familiar Theme from Terms of Endearment on the piano as Tommy sits beside him.
> there aren't that many shopping days left till Christmas.
