The "mother of all surprises" happened live this morning on "Good Morning America."

Katie and Daniel Vardalis, of South Amboy, New Jersey, invited their parents and close friends to join them for a special event live in Times Square under the ruse that Daniel Vardalis was being honored for his military service in the Army Reserves. But really, there was a completely different reason for gathering everyone together to celebrate.

Surprise! The couple is expecting their first child the day after Christmas, on Dec. 26, 2014, big news their parents were certainly not expecting to hear.

"I can't describe it," Ken Karmazin, Katie Vardalis' father, said of the exciting announcement. "There are no words."

In order to pull off the massive surprise, Katie, 31, and Daniel, 35, recorded a holiday-themed video message explaining they had an early Christmas present they couldn't wait to give their parents, friends and family.

It wasn't until the video played out on the jumbotron in Times Square that their elated parents realized they'd be getting the best gift of all this coming holiday season - their very first grandchild.

Tears and hugs were shared all around as the family celebrated the brand new bun in the oven.