After returning home from Iraq, George Sr. is finally cleared of all charges, and Michael is relieved to be the head of a successful company for a change. The real brains behind the madness is revealed, and just as the family begins to celebrate their victory, a whole new set of problems emerge.

Michael is increasingly frustrated over being abandoned by the family, and when the staircar is found in Mexico, Michael vows to find his father and give him a piece of his mind. Also, Buster spends time with Lupe's family and thinks he's in Mexico.

Lucille hires a bounty hunter, Ice, to find George Sr., who may be closer than everyone thinks. Gob tries to pull off an elaborate illusion, Maeby tries to set Lindsay up with Ice, and Michael tries to mend George Michael's broken relationship.

Gob stages mass firings after being inadvertently roasted at the Bluth Company Christmas party. Michael is forced to rebuild the Banana Stand, and Buster plays hooky from the Army at an arcade game.

George Sr. tries to find a way to attend an anniversary dinner for Lucille while Michael deliberately offends Ann's devout Christian parents. Tobias goes overboard performing his "Mrs. Featherbottom" persona.

Gob goes to Iraq to perform his Christian magic act on the USO tour and ends up incarcerated. Michael learns George, Sr. sent Gob to Iraq to burn down the model home he built there, so Michael and Buster fly to Iraq to spring their brother from prison.

Buster realizes that medical marijuana will help cure Lucille 2's vertigo, and pays George Michael to get it for him from Gob. Lindsay sends Maeby to spend a day with Lucille to punish her for bad grades. Michael thinks George Michael is on drugs and attempts to teach him a lesson.

Michael must deal with a huge mole problem in order to salvage a major real estate deal with Japanese investors. In an effort to help Michael, Gob and Buster team up with George Sr.'s surrogate, Larry, to devise a plan and save the deal, but their plan falls apart in a big way. Meanwhile, Tobias mistakes a CIA agent for a CAA agent and inadvertently betrays the family, and Michael makes Rita a proposal she can't refuse. Frankie Muniz makes a cameo as himself.

Michael is tired of his father always having Gob compete with him, so Michael gets Gob his own banana stand franchise, only to find that Gob has set it up 20 feet from the old one. After the two compete, they decide to teach their father an elaborate lesson, and Buster refuses to use his handicap to scare kids. Meanwhile, Maeby uses Lucille's surgery in a horror film.

In the first season finale, George Sr. has a heart attack, and Maeby is jealous when George Michael likes another girl. Meanwhile, Lindsay decides to leave Tobias until a book he wrote a long time ago becomes a gay bestseller, and Buster and Annyong compete over women.

Michael tries to find out who's the father of Maggie's baby, or if it's just another of her lies; Gob tries to find out whether he was responsible for Buster's accident.

George Sr. suggests a last-ditch effort to save the family by holding a fund raiser to raise money to pay their legal expenses. Michael suggests to Lindsay that she take over the house work, and he sends George-Michael to an expensive boarding school. Meanwhile, Maeby has trouble with a snowboarding film and Tobias tries to be a "discipline daddy".

In an effort to get to the bottom of things, Michael tracks Nellie down and hires her as a consultant for the Bluth Co. Unfortunately, Michael discovers Nellie's hands-on approach is more than he bargained for.

Michael attempts to have a one-night stand with an attorney whom he doesn't know is not only blind, but the prosecutor who is trying to put his father in jail. Also, Gob gets married on a dare, Maeby pretends to be a girl with a made up disease, and George Sr.'s admirer turns out to be an undercover SEC agent who has truly fallen for him.

Gob steals a file on the government's case against the Bluth Company that Maggie had given to Michael. Tobias is sent to Maggie's house to get evidence, George Michael tries to prove Maeby's fraud, and Lindsay fights to remove the Ten Commandments from the courthouse lawn.

Michael takes Maeby to work with him on Take Your Daughter to Work Day. After being slighted by Michael, Tobias, George-Michael and Gob all go to the mall to prove that they are just manly. Oscar takes Lucille and Buster to Annyong's soccer game.

George Sr. fears he's losing Lucille to Oscar. Gob motivates Buster for the Army while Lindsay spends more time with Maeby to get closer to Steve Holt and Tobias starts working out.

Lucille abducts George Michael for a mother-son dance, Buster adjusts to having a hook for a hand and Gob reunites with his estranged wife. Also, Tobias stars as George Sr. in a biopic about the Bluth family, which causes Lindsay to become more attracted to him.

Gob hides George Sr. while the model home's plumbing is checked; George Michael helps Ann protest Maeby's new movie; Tobias takes a liking to Kitty after Michael asks him to keep an eye on her.

Michael learns that it's actually George Sr.'s twin brother Oscar serving time in prison, not George. After getting a tip from Barry, Michael heads to Reno to find George, but that costs him a camping trip he promised his son.

George Sr. is placed under house arrest by the family's new attorney Bob Loblaw, and finds that it's not exactly a walk in the park. Michael sets up his first date with Rita, but Rita has an unfortunate encounter with the family beforehand.

After Michael announces he's marrying Rita, George Sr. worries that she's after the family's money. But when Rita's Uncle Trevor tries to stop the wedding by revealing some surprising information about Rita, Michael must decide if he wants to walk down the aisle.

George, Sr. hires a new attorney who asks the Bluths to participate in a mock trial to help prepare them for the real thing. The attorney gets actor Judge Reinhold to preside over the mock case. Meanwhile, Buster fakes a coma to get out of testifying, and George Michael and Maeby participate in a mock wedding to entertain hospital patients. Back at the office, Michael discovers that he may have a long-lost sister named Nellie Bluth.

Michael and George Michael leave for Phoenix but go back to ensure the family misses them. Lindsay wants to have an open marriage, which causes Tobias to try to join the Blue Man Group under the impression that they are a support group for depressed men. Lucille signs Buster up for the Army after being goaded by a Michael Moore look-alike. Gob becomes president of the Bluth Company.

George Michael runs for student body president, which Gob manages to ruin. Buster has an affair with Lupe, who is being sought after by Lindsay and Tobias attempts to move out of the model home, then develops a new persona when he regrets his decision.