Holiday festivities are underway in the Kelly household with Jean making her famous punch loaf to Grace's dismay and Jimmy's delight. Floyd is so much in the holiday spirit that he's giving away the entire inventory at the pharmacy, and an exasperated Russell decides to get rid of him by sending him on a cruise. Grace gets suspicious of Quentin's mellow mood and at first thinks that he's been drinking beer with his friends. When it dawns on her that he's been smoking pot, she fears that she's about to see him repeating all her teenage mistakes and decides that ""tough love"" is the only way to handle the situation.

When Grace brings her depressed sister, Faith, home for the holidays, she learns that Faith has been having an affair with a married man.

Grace has to contend with her 'down-in-the-dumps' ex-mother-in-law and an invitation to a Christmas dance with Dougie.

The Kelly's Christmas celebration is dampened when Emmet dies suddenly and his 'significant other' appears at the funeral and shocks everyone by announcing that fact.

Louise, Grace's mom, arrives for the holidays, surprising everyone. Louise has definite ideas about how little girls are to be brought up and she disapproves of Libby's tomboy behavior. Her mission is to turn Libby into a demure young lady, and she starts with a present to Libby of ballet slippers. Grace has no use for Louise's attempts to mold Libby into the lady that Grace never was. She likes the strong, independent Libby and doesn't want her to change. And Libby is feeling quite uncomfortable from all the pressure she's getting from her grandmother. Meanwhile, Russell is selling ""Photos With Santa"" at the pharmacy with Quentin doing the photography, but Russell's disappointed when Dot refuses to pose in a silly elf costume

Grace has divorced her abusive husband and is faced with supporting their three children. In the premiere episode, she takes a job at an oil refinery and dates the local druggist. Quentin gets into fights at school.

Quentin's bad moods are puzzling to Grace. Perhaps he needs a male role model. Grace tells Russell that she is not ready to have a new relationship. These serious discussions take place up on the roof.

Grace and Nadine take a night out and flirt with some frat boys, while Russell and Wade try to steal Russell's dog which his ex-wife got as part of the property settlement.

Grace is angry when her paycheck is attached to pay the back taxes of her ex-husband; Russell's ex-wife upsets a date with Grace when she decides to return to him.

The 'nice' guy Grace meets, at the behest of Nadine to attend a 'second time around' meeting, turns out to be Nadine's first husband (of three, she married the second twice. Wade is #4).

Faith asks Grace to talk to Evie, their wild younger sister, but when the three get together, Grace refuses.

Grace and Russell make plans for a double blind date; Libby is harassing baby Patrick.

Watching a talk show on tv, Grace sees her ex-husband brag about how his lawyer got him thousands for an injury and Grace decides to push for child support.

Wade gets fed up with his job at the phone company and takes a new job as the 'in the air, on the air' reporter.

Grace's status at the refinery becomes permanent and she gets a raise, but has to take the night shift and will miss the school play Libby is in playing a pork chop.

Grace takes her kids to her in-laws' house to meet their great-grand mom (Lil) from their father's side, the only in-law she actually likes. Lil gives her a ring to pass-on to Libby.

Grace turns down the advances of a guy, but welcomes a gal who is a 'battered wife' needing help.

Needing her own space, Grace turns to the basement to create a room for herself and get some privacy.

A romantic weekend in the Windy City is blown away when Ryan fails to show up at the airport on time.

Quentin shows his displeasure when Grace invites Ryan to dinner.

Libby is entered in a beauty pageant with a friend. The two mothers don't hit it off very well. Libby sings ""Tomorrow"".

Quentin is totally out of control and getting into fights at school, so Grace takes him to a child psychologist.

Grace and Ryan have time for themselves when Faith takes the kids to visit their grandparents and the refinery is closed.

It is Mother's Day and mother comes to visit. Faith gives them an earful.

Grace's promotion does not bring her happiness. Quentin runs away to find his dad and the men at work are disgruntled.