Kate MiddletonandPrince Williamstole the spotlight atQueen Elizabeth‘s Buckingham Palace last week, making it clear that they are ready for the next step on their royal journey.
Entering the glittering palace ballroom behind the monarch andPrince Charlesand Camilla, Duchess of Cornwall, Kate and William mingled expertly with partygoers at the Dec. 11 reception for diplomats.
“They combine grace and regal presence with a lovely human touch,” a guest who attended the annual bash tells PEOPLE in this week’s cover story. “They are gracious and natural and yet able to really connect.”
The future King and Queen, who have been married for eight years, are honing their expertise as they go.

Kate Middleton and Prince William on the cover of PEOPLE.

Their teamwork was also on display during the couple’s triumphant tour of Pakistan in October.
For more on howPrince Williamand Princess Kate are making new strides in their royal work, pick up a copy of PEOPLE on newsstands on Friday.
Increasing travel and work commitments bring added pressures on their own family, especially as older children Prince George, 6, andPrincess Charlotte, 4, are more aware of their parents’ away time. (Little Louis is 19 months.) And occasionally, something’s got to give. Kate recently had to cancel an appearance with William at an evening event for the Tusk Conservation Awards because of a childcare issue. A source close to the royal household says, “That is good for other mothers out there.”
Victoria Jones/PA Wire

Prince William.Victoria Jones/PA Wire

Next week, the family of five will spend Christmas with the Queen at her Sandringham estate in Norfolk. WhilePrince Harryand Meghan Markle have opted to spend the holiday apart from the royal family, William and Kate will take their place alongside the Queen for their annual church walk — with George and Charlotte possibly making their Christmas Day debut as well.
They are also preparing for a busy year ahead. The couple are expected to go abroad on at least two overseas visits and continue with their efforts at home in the U.K. promoting mental health initiatives and supporting families with young children.

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As they near 40, both royals are also keenly aware of the passage of time — and how much closer it brings them to the throne.
“The monarchy is approaching a very challenging period of change,” says royal historian Robert Lacey. “Charles is going to have his work cut out coping with the transitions. It’s good to have that reassurance in the new generation that there is someone stepping up to the plate.”
source: people.com