On Christmas Eve, Larry and Balki throw a Christmas party at their apartment for all their friends. But when Balki realizes that Mr. Gorpley is lonely, he invites him who causes a lot of trouble with snide attitude and everyone wants to throw him out. But Balki insists on spreading a little Christmas cheer his way too.

Larry decides to join a health club after having the hots for a member named Jennifer. But he thinks she's only interested in jocks and pretends to be one. Balki goes with him and picks up a woman right away who happens to be Jennifer's best friend Mary Anne.

Larry and Balki are snowed in Chicago on Christmas Eve which means they can't go to Madison to see Larry's family. So Larry is miserable until Balki spreads some Christmas cheer his way.

Balki loses $100 at Mr. Gorpley's poker game so Larry insists on playing at his next game to win back Balki's money and then some. Larry tells Balki that he is a great poker player but he loses every hand to Mr. Gorpley.

Larry and Balki throw a '50s party and invite their friends. Lydia brings her date Lamont, a hypnotist. After demonstrating hypnosis, he accidentally hypnotizes Balki into thinking he's Elvis which carries on through their tax audit the next day.

Larry is assigned to interview Uncle Shaggy, a kid's show host and when he gets Balki to take a picture of him without his costume, the get Uncle Shaggy fired after someone discovered that he has a criminal record for something he did along time ago. But Larry swears he will make it up to him.

Jennifer's mother comes to town and wants to meet Larry, and Jennifer doesn't think that her mother will approve of her marrying him. Later on, Larry falls down the stairs at the Chronicle and gets amnesia which lasts through the dinner where Larry meets Mrs. Lyons.

Larry has been invited to a formal party for a photographer he idolizes but Balki's honest opinions embarrass Larry.

Jennifer and Mary Anne are going skiing and invite Larry and Balki. Larry thinks he can impress Jennifer by being an expert skier without much luck. So he decides to fake an injury to get sympathy from Jennifer.

The quartet are trapped in a cabin buried alive by an avalanche and they try to dig a tunnel to the outside world.

Larry enters a photo contest and has the idea of a perfect picture. But to take it, he and Balki have to go up on a roof and shoot it before a storm comes in.

Larry's bowling team is one game away from winning the trophy that Mr. Gorpley has been waving in Larry's face for the last year. But Calvin, the star player has been sent out of town by his boss - Mr. Gorpley of course. Balki tries bowling for the first time and had an excellent score so he becomes the substitute, but his trip to the ophthalmologist before the tournament may make playing difficult.

Larry and Balki win a trip to Las Vegas. When they get there, Larry plans out what to do for their entire trip to prevent Balki from going to the casinos and becoming a compulsive gambler. Balki eventually talks him into it and after Balki has a string of good luck playing roulette, Larry starts playing and won't stop.

Balki got a dog and wants to keep it even though it is against the lease. So Larry and Balki do their best to hide it from Twinkacetti.

Larry and Balki invite Jennifer and Mary Anne over for dinner but cannot agree on what to serve which cases a rift between them and eventually a rift between Jennifer and Mary Anne.

When Larry's sister Elaine stops by for a visit, Larry is appalled when she tells him that she's going to New York to become a pianist instead of college.

Larry manages to get tickets to go to a Bulls game with Balki on the night that Larry promised to take Jennifer to the ballet. So Larry lied to Jennifer saying that he had to work. Balki tells him a story about an old Honeymooners rerun where we see Ralph (Larry) lying to Alice (Jennifer) about having to work late when he plans on going bowling with Norton (Balki) and Alice ends up finding out about it while she was with Trixie (Mary Anne). However Jennifer found out about the basketball game and Larry is in a heap of trouble.

When Lydia wants her piano moved up ten flights of stairs so she can sing for a record producer she is dating, Balki volunteers himself and Larry but Larry's bad back may be a strain on this whole thing.

After the river takes them on a wild ride, The four end up lost in the woods. Hoping that Larry can regain Jennifer's respect, he talks Balki into letting him lead them back to the camp site but they end up walking for five hours in a circle. Later, Larry and Balki almost drown in quicksand and in the evening, they get attacked by a bear.

When a big corporation in Chicago wants to buy 300 acres of land on Mypos, Balki was chosen to negotiate the sale, and he picked Larry to guide him through. When they are offered 10% of the total sale of 28 million dollars, Larry insists they accept is but Balki has a funny feeling about it.

After Larry saves Balki from getting hit by a taxi, Balki becomes his personal servant which ends up annoying Larry.

Balki falls in love with a girl at night school and who makes a play for Larry and constantly breaks dates with him. Balki refuses to believe that she is just using him to get good grades.

Larry is promoted to the investigative reporting team of Marshall & Walpole at the Chronicle and looks hard for a great story. Harriette's husband Carl is a cop who is about to make a big bust and Larry tries to take advantage of the situation to get a front-page story.

Larry is assigned to be on a game show called "Risk it All" and Balki is his partner. Balki wants to do all the stunts on the show but Larry, to avoid humiliation, insists that he just answer questions and go home. But after being offered a cruise around the world, Larry won't quit.

Balki gets a cavity and Larry makes him a dental appointment for him and Balki is excited to go when Larry tells him about all the neat stuff but he's too scared to go when Mr. Gorpley tells him about the drill.