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.

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'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.

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 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.

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.

After losing their new apartment, Larry and Jennifer move into a luxurious Victorian house but can't afford to pay for food and heat. So after trying to break the lease without success, They ask Balki and Mary Anne to board with them to help them out.

Larry and Balki throw a Halloween party with their friends and after six hours of watching scary movies, Larry wakes up and discovers that Balki is an alien from "Planet Mypos" and is turning everyone into Mypiots by putting vests on them.

The Chicago Chronicle is having a camping trip. Larry hates camping but knows that Jennifer loves it, so he arranges a trip. Jennifer insists she won't go alone with Larry (remembering the skiing incident), so Larry elects Balki as the camping leader thinking that Jennifer would feel safe and Mary Anne decides to go along.

With Larry working late and Balki at college, their household chores are falling behind. So they decide to hire a maid. They finally select Mr. Bailey who waits on them hand and foot for practically nothing which ends up getting on Larry's nerves.

Lydia is miserable when her boyfriend dumped her so Balki uses his match-making skills to fix Lydia up with a man who turns out to be a gigolo who married wealthy women, takes their money and leaves them.

Larry decides to impress Mr. Wainwright by enlisting himself and Balki to move his brand new oversized couch up the elevator to his office while the elevator is under repair.

Balki insists on buying a lottery ticket but Larry thinks that it is just a waste of money for something that can't possibly win. But during the draws, Larry realizes that Balki picked the right numbers and won 28 million dollars but Balki can't remember where he hid the ticket.

After Mr. Perkins, an employee at the Chronicle parked in Larry's parking space and Jennifer breaks a date with him at the last minute, Larry figures he has trouble being assertive. So he goes to a seminar called "stop" hoping it will help him become more assertive. When he returns, He tells Jennifer and Mr. Perkins off, and he instructs Balki how to get a raise after Mr. Gorpley laughed in his face when he asked for it. He finally gets Balki to demand a raise from Mr. Gorpley.

Mary Anne was promoted and moves to London and Balki is heartbroken and miserable. So Larry suggests Balki get a hobby to take his mind off her. So he joins a motorcycle gang where the club plans a wild initiation ceremony.

Larry and Balki are flying to Hawaii with Jennifer and Mary Anne serving along the way. But after eating a Myposian snack the wrong way, Jennifer and Mary Anne get sick. So Larry and Balki decide to cover for them but didn't know they weren't suppose to serve through turbulence.

Balki finally has enough money to buy a car and thinks it will be fun. But Larry insists on using his father's "used car rating system" to buy him one and ends up choosing him a lemon.

As the best man at Larry's upcoming wedding, Balki is tricked by Mr. Gorpley into throwing a bachelor party and when Mr. Gorpley show up at the party, he spikes the punch and hires a stripper and Jennifer finds out.

Larry and Balki are driving to Lake Whitefish where Larry and Jennifer are getting married and they are pulled over for going too slow, but they are arrested when Larry backs into the patrol car, then they are picked out of a line-up when Larry is identified as a robber. Larry and Jennifer end up getting married in jail until the real robber confessed.

Larry goes to an auction to cover a story and brings Balki with him and Larry demonstrates the bidding procedure at an auction and they wind up buying a very expensive bottle of wine for $21,000. They now must hide it from Jennifer until they can go back to the auction and resell it.

Larry and Balki get part time jobs to earn extra money. Balki tries stuffing teddy bears, but Larry asks for his help with door to door selling cleaning products. However, Larry is determined to go to a mansion and sell lots of products instead of going door to door with disastrous results.

Balki gets his and Larry's names drawn for jury duty which starts the day before Jennifer has a pre-paid, non-refundable vacation to Bermuda booked for her and Larry. Balki holds out for not guilty endangering Larry's plans.

Larry has an excellent idea to present to the owners of the Chronicle but has trouble getting into the party that they're holding. And mistakenly believing that Balki is that Crown Prince of Mypos, he gets invited with Larry.