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.

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.

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.

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.

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.

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.

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.

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.

Larry was chosen to teach a college course in journalism and Balki is able to take the class. But his standards are set way too high that he fails the whole class.

On Balki's 25th birthday, his mama has a pre-arranged marriage that Balki must go through with, even though he is in love with Mary Anne. So Larry and Jennifer try and find a way to save Balki from being unhappy.

Larry and Balki wind up in jail after refusing to reveal their source for a commodity scandal, to protect the freedom of the press. They won't stop there; they are very persistent to keep their sources, and take the hard time, but they later get two dangerous cell mates.

Larry prepares a surprise party for Balki who is taking his college entrance exams. While they are waiting for him to return, they talk about some things they've been through together such as when they first met, the first day at the Chronicle, when they tried to fix Jennifer and Mary Anne's shower, etc. Larry thinks that he has helped Balki come along way but it seems that Balki has been helping him more.