Punky and Cherie send Henry on a blind date with Ms. Maytag, the school librarian, then they talk Betty into appearing on the TV show "Dream Date", where out of the three women on the show, overweight contestant Chuck McKinley chooses Betty.

Punky's friendship with Cherie is put to the test when Cherie falls for Donald Sotta, a new boy in the neighborhood, and Cherie begins to spend more time with Donald than she does with Punky, making a jealous Punky think Cherie likes Donald more than she likes Punky, until Cherie proves Punky wrong by telling Punky that Cherie loves Punky as her best friend, and Cherie doesn't like Donald so much anymore because all Donald cares about is baseball, basketball, and wrestling.

In a special episode: Allen is scared to death that his parents Andy and Annie are going to get a divorce because Andy and Annie have been arguing a lot lately, more than usual. It turns out that Allen is right, and Andy and Annie decide to get a divorce. Later, Punky finds Allen in the treehouse with a lot of his things. Allen says he's never leaving the treehouse, and Punky is shocked by the reason why -- Allen has to move to Kansas with Annie. Allen doesn't want to leave his friends and move to an unfamiliar place. Henry comes outside and tells Allen that Annie is looking for him. Punky and the gang say a tearful goodbye to Allen, and Punky tells Allen that she and the gang will always be Allen's friends, and that they will always stay in touch with Allen.

Punky tells Henry that she is afraid of being in any vehicle driven by her friend Joey Deaton's father Mike Deaton, because Mike has a drinking problem, but Joey and Henry are reluctant to believe Punky, even though she's telling the truth. When Henry and Joey see for themselves what Punky saw, they apologize for not believing Punky, and Mike decides to get help for his drinking problem.

When Punky is grounded, she has a dream that she is an indulgent parent who lets her kids do whatever they want to do.

Punky's new math tutor Walker Wimbley turns out to be a Casanova who tests the friendship between Punky and Margaux by falling head over heals for Margaux -- crushing a lovestruck Punky. Walker turns out to be a jerk, and with Margaux and Cherie's help, Punky gets even with Walker.

A stubborn Joey thinks he should keep Brandon, while his mother thinks he should do the right thing and give Brandon back to Punky, but Brandon escapes from Joey and shows up at Punky and Henry's door, being chased by Joey and his mother.

Henry tries to overcome his fear of public speaking when he helps Punky petition city council to turn a vacant lot into a park -- but another man, Mr. Arnold, wants to put a mall in the lot, not realizing that Chicago has too many malls already. Henry does speak for Punky in front of the city council, and the city council decides to turn the vacant lot into a park.

When Henry's most valuable employee, Stanley, quits his job, Henry tries to find a replacement for Stanley, but to no avail. Punky tells Henry that she needs money to pay her own way into summer camp, so Henry hires Punky, then promptly fires Punky for wrecking havoc in the restaurant, starting a feud between Punky and Henry. Henry believes Punky should have taken the time to learn how to do some of the things that she made mistakes doing, while Punky just wanted to do a good job for Henry.

Punky is terrified when she has to have her appendix removed, and angry when it delays the vacation that Punky, Cherie, Brandon, Betty, and Henry were getting ready for when she collapsed from the pain of appendicitis.

The apartment building's new owner -- Margeaux's father Benjamin J. Kramer -- wants to increase Betty's rent by 60%. Betty is afraid that a 60% rent increase would force her and Cherie to move out of the building.

After discovering that Henry has become addicted to the sleeping pills that were prescribed for him six months ago when back pain kept him awake at night, Punky helps Henry realize that he has an addiction, and she helps him make the decision to stop taking the pills, because he doesn't need the pills anymore, and Punky wants him to be around for a long time.

When Margaux and her parents go bankrupt and auction off all of their belongings, Punky and Cherie use their skiing trip money to buy Margaux's favorite doll back for her -- a true showing of friendship that Margaux dearly appreciates. Margaux returns the favor by repaying Punky and Cherie's skiing trip money when her family comes back into having mega money again.

Punky and Cherie sell cosmetics door to door for Lady Contempo Cosmetics, until they discover that Lady Contempo Cosmetics is a scam run by a con artist named Sidney. Henry washes his hair with Lady Contempo shampoo and wakes up the next morning with no hair on his head. Punky and the gang have to deal with angry customers who have also felt the various side effects of Lady Contempo products, and when they go to Lady Contempo to confront Sidney, they see that Sidney has cleared out, and it turns out that the reason why Henry is bald headed is because he washed his hair with Contempo furniture stripper that Sidney had disguised as Lady Contempo shampoo, and the reason why the blue face mask won't come off of Betty's face is because the face mask is actually kitchen floor wax that was disguised as the face mask cream. While they are in Sidney's office, A detective named Denko shows up looking for Sidney, who has cleared out.

During a firefly girl troop meeting, Punky befriends a deaf girl named Maria Aragon, and Maria begins to think that because of her disability, she'll never be accepted by the other girls, so Punky helps Maria make friends in the troop.

Brandon runs away, and while Punky and the gang spend six hours searching for Brandon, Joey Deaton, a kid Punky's age, takes Brandon in, and hopes Brandon can move to California with him and his parents.

Punky decides that she would rather go on a yacht on Lake Michigan with Cherie and Margaux rather than stay home and take care of Brandon, until she has a dream that shows her how it feels to be Brandon.

Punky is invited to the birthday party of rich kid Robert Whitney when Henry is hired to be the party's photographer. In order to keep from embarrassing Henry, Punky takes lessons from Margaux on how to act like a rich stiff. The lessons don't work -- Punky ends up wreaking havoc and has Robert wishing that his social secretary Charles hadn't invited any stiffs to the party, because Robert didn't want the party to be as boring and stiff as Charles wanted it to be.

Punky has a crush on 16 year old Kevin Dowling, who is helping Punky install a stereo in the treehouse. Punky tells Henry about Kevin, and Henry, who doesn't understand that Punky has a crush on Kevin, vows to break every bone in Kevin's body. Punky is crushed when she meets Kevin's girlfriend Gina.

Punky, Cherie, and Margaux go to summer camp, where they learn about such traditions as T-shirt raids, and the kissing rock, but Punky doesn't seem to have the same romantic visions about these things that Cherie, Margaux, and their roommate Marcie have -- until Punky is kissed by a boy named Jimmy. Also, Cherie is annoyed by Franco Grenolli, a fellow camper who has a crush on her.

Punky and Cherie enter a radio scriptwriting contest sponsored by a local radio station that has just changed its format from rock music to radio stories, and Punky, Cherie, and Margaux hope to win the grand prize trip to Disneyland, unless their opponents Garth Goobler and Grant Goobler, the self centered sons of a radio star, stand in their way. Punky, Cherie, and Margaux outdo the Goobler brothers and win the contest.

Punky and the gang want to know why Brandon is acting so strange lately, then Brandon is accused of biting a new neighbor, Ms. Jenner, and as a result, Ms. Jenner wants Brandon to be put to sleep (euthanize), so Brandon is taken to an animal shelter for examination.

Cherie's cousins Paula and Bobby arrive for a visit, and Paula, who doesn't know how to read, can't read the warnings and help messages on a bottle of fabric softener that Bobby drank out of.

After learning that Punky did not do her book report, Henry cancels Punky's plans to see her favorite singing group DeBarge in concert, a move that Punky vows to never forgive Henry for -- until Henry gets DeBarge to come to the apartment and tell Punky how important reading is.

Punky decides to write a gossip column in the school newspaper, and she soon finds herself in hot water with her teacher, her schoolmates, and Henry when the gossip column does nothing but cause problems, especially when Punky's column tells her teacher, Mrs. Winston, which class put a frog in Mrs. Winston's briefcase. Mrs. Winston thought it was her biology class, but it was her history class.