Jim announces he has psychic dreams and unfortunately, he has had one about Alex, culminating in his death. The gang becomes increasingly worried about Alex, when one by one, all of the events Jim dreamed about start coming true. However, Alex continues to reject Jim's superstitions. Louie becomes so worried about Alex, he comes to Alex's apartment to take him somewhere (so the final part of Jim's dream doesn't come true, since he is to meet his doom that evening at home), but possibly to spite Louie, Alex decides to stay and tempt fate. In the end, it turns out that the doom Jim dreamed about was a girl scout knocking at Alex's door, instead of his death, but when Louie leaves, Alex actually appears very relieved that Jim's premonition was wrong.

Alex and Elaine decide to take a vacation together through Europe. However, Alex feels it necessary to tell Elaine in no uncertain terms that they are going together as platonic friends, so there's no resentment if he meets and wants to spend time with any other ladies on vacation. Elaine agrees to this and they decide to do things mostly separately during the days, but to meet up once a day to write post cards together. During the trip, it turns out that Elaine is getting all the action, while Alex is lonely and unhappy. The last night, however, Elaine takes pity on Alex (more or less) and propositions him, suggesting that their friendship is strong enough to endure one night of ""love."" They then go off together...

Latka begins exhibiting multiple personalities again: not only Vic Ferrari, but also a cowboy, and best of all, he becomes Alex! Elaine refers Latka to her psychiatrist, but meanwhile Latka is becoming even more ""Alex""-like than Alex himself: he is a better cab driver and gives better advice to the gang. Alex decides he'd better sit in on a psychiatric session with Latka and Latka/Alex is about to reveal the answer to all of Alex's problems (somehow he has figured out the secret to Alex in the midst of subconsciously becoming him), when he becomes Latka again. This leaves Alex extremely frustrated and after Latka leaves, Alex sticks around to talk to the psychiatrist further.

While driving a television executive in his cab, Jim exhibits more psychic behavior by predicting TV ratings. Mitch, the executive, seeks Jim out the next day in hopes of getting more advice about TV programming that might save his job. Jim starts helping Mitch regularly and Mitch becomes a star at the network, but the gang soon convinces Jim (who isn't being compensated for this help) that he's being taken advantage of. Jim angrily confronts Mitch, who agrees to tell the network head honchos all about Jim and to get him a job, but Jim has a change of heart, saying he doesn't want to profit from his God-given gift as a psychic.

Zena asks Louie to drive her friend Emily, who has just been dumped and is drugged, drunk, and upset, back to her apartment. While there, Emily comes on to Louie and he ends up cheating on Zena. Louie soon brags of his conquest, but Elaine gets so angry that she is about to tell Zena everything. Louie decides to tell Zena himself though, who understandably dumps him. Louie then shows up at Emily's apartment, but Emily is clearly regretting her indiscretion with Louie and is getting back with her boyfriend anyway, so she kicks him out quickly. Louie, back at the garage, is in tears because he is so upset at the turn of events. Alex, feeling sorry for Louie, gives him some sage advice on how to get Zena back. All of a sudden, Louie turns off the tears and Alex sees that he's been had and gets furious with himself. As Louie goes to talk to Zena (and presumably gets back together with her), he assures Alex that the tears were real.

Alex's estranged father contacts Alex and reluctantly, Alex agrees to have lunch with him. At first, Alex lays into his father about having deserted his family, but eventually they start having a nice conversation. Alex's father, a real ladies' man, even sets him up with an attractive woman sitting at the table next to them at Mario's. When Alex leaves Mario's, Alex's father makes a date with the woman as well. Evidently, both men continue dating the woman, but when Alex learns that his father has double crossed him, he becomes furious and confronts his father. Ultimately, Alex's father lays on the charm enough with Alex that Alex forgives him and they are seen having dinner together.

Louie becomes irrationally upset when he learns that his mother plans to marry an elderly Japanese man. Louie makes his mother miserable in an effort to thwart the wedding, but she still goes through with the wedding (a traditional Japanese ceremony), and Louie refuses to attend. At the last minute, Alex talks Louie into going, however, and Louie proclaims that whatever despicable act he might perform at the wedding would be Alex's fault for convincing him to go. When Louie is very close to wrecking the wedding, he has a change of heart and gives the couple his blessing.

Elaine makes it her mission to try to cure a talented and friendly but troubled artist of his severe agoraphobia (fear of public places). Alex (possibly jealous of Elaine spending time with another man) advises Elaine to leave the treatment to a professional, but she ignores his advice and eventually brings the artist to the garage. Predictably, the artist is scared to leave the cab but while Alex and Elaine bicker about her methods, the artist walks out of the cab and appears to be making progress.

Tony becomes the manager of a promising young heavyweight boxer at his gym, but after the boxer wins a major fight, the ""syndicate"" (which turns out to be some doctors looking for an investment, rather than the mob) makes Tony an offer he can't refuse and takes over the boxer's management.

When Louie spies on Elaine changing in the garage bathroom, she enlists a NOW representative's help and gets Louie fired. Louie appeals to Elaine at her apartment one evening though and begs her forgiveness (and her help getting his job back). After Louie exhibits actual remorse and demonstrates through a touching story that he knows how it feels to be violated, Elaine accepts his apology (and presumably gets him rehired at the garage).

Louie becomes scared of nuclear war after hearing someone talk on Donahue, and he sets up a bomb shelter in the garage. He schedules a weekend drill with Jeff and Tony in tow, but finds he's too ""soft"" to survive if war really broke out, since he is unwilling to throw Jim (who has stowed away in a radiation suit) out of the shelter.

Bobby, who has moved to Hollywood, comes back to the garage for a visit and announces that he's filmed a pilot for a new prime-time soap opera. During his visit, he learns that the pilot has been picked up as a series and Bobby throws a party at the Plaza Hotel to celebrate. He soon learns that although the series is a go, they no longer want Bobby to appear in it. Bobby is upset and entertains the idea of moving back to New York, until Alex convinces him to follow his dream in Hollywood.

Alex is strangely rejecting the advances of a cute, bubbly, young African American cab driver named Nina. Alex is growing more and more annoyed until he decides to invite Nina over to his apartment to talk to her and try to explain why she shouldn't be so interested in him. Although he succeeds with a fatherly talk where he comes off very dull, they kiss goodnight. After the kiss, Nina is convinced there's no spark between them after all, while Alex seems to change his tune also, but it's too late.

Tony takes a second job working as a chauffer for a wealthy but friendly woman named Christina. The two of them hit it off while he's driving her around, and Tony develops a crush on her. By the time Tony finally gets up the nerve to ask her out, it's too late-- she has just become engaged.

Latka is eagerly anticipating a reunion with his ex-girlfriend from the old country, Simka. She arrives at the garage and while Latka is in the bathroom, Alex warns her of Latka's multiple personalities. Sure enough, at Latka's apartment later, Vic Ferrarri makes his appearance and seduces Simka. Much to Latka's dismay, soon his alter-ego, Vic, and Simka seem to be an item. Alex encourages Latka to fight Vic for Simka, which he does in hilarious fashion and Vic never returns.

Jim befriends a runaway child, who has stowed away in Tony's cab, and soon has ""adopted"" him. When the gang gets wind of this, they find the kid's parents and reunite them.

Alex runs into his ex-wife, Phyllis, eating alone at a restaurant, and when she tries to reach out to him, he gently tells her he's not interested. Nonetheless, Phyllis shows the next day at the garage to find Alex, but he's out driving. Louie manages to arrange a date with Phyllis, who is particularly vulnerable, having just gone through a divorce. When Alex learns of this (after Louie tries to rub it in), Alex becomes concerned about the depths that Phyllis has sunk to and goes to her hotel to talk. Too late- Louie has already arrived and has already tried to seduce Phyllis, much to her disgust. Alex then takes Phyllis out to dinner, leaving Louie naked in Phyllis' hotel room.

Elaine spends over $200 to go to a trendy hairstylist before a special date, but the result is outrageously bad. When she expresses some disappointment, the hairstylist insults her and she leaves, crying, but still pays. Alex talks her into going back and standing up for herself, so she can get her hair fixed and her money back. That doesn't go too well, but in the end, Louie, who has followed Alex and Elaine to the hairstylist, exacts revenge on the guy by pouring a bucket of red hair dye on him.

Tony begins working out with a new cabbie, Lucius, who is a former football player. Tony is in great shape all of a sudden and Lucius inspires Tony to try to get his boxing license reinstated. Tony is not hopeful that the boxing commission will reinstate him, so he is surprised when he gets his license back. In addition, he getes a major fight scheduled with a promising young fighter. Meanwhile, Lucius goes away to Miami to try out for the Dolphins. Without Lucius around, Tony loses his motivation and his training suffers. At the fight, he is getting pummelled until Lucius, who has learned that he has made the Dolphins, arrives to inspire him. With Lucius' support, Tony turns the fight around and knocks out his opponent.

Jim invites Elaine to a concert, and while there, they run into an important patron at Elaine's art gallery. The woman invites them both to a party, although Elaine is very worried that Jim will embarrass her in an event that's important to her career. Still, she doesn't quite have it in her to ask Jim not to go. At the party, Elaine's worst fears are realized with Jim's behavior, until he surprisingly wows the crowd on the piano and turns things around.

Latka, who Joyce Brothers has declared is cured of his multiple personality disorder, asks Simka to marry him. They then must endure a bizarre series of tests, as is the marital tradition for members of their religion. In hilarious fashion, things get ugly at the ceremony itself, and Simka denounces her religion, when her minister reveals that she has just passed the last test and they are now married.

After Jim's home is destroyed by a wrecking ball, he stays with Louie, much to Louie's dismay after Jim declares him his ""best buddy."" Jim soon burns Louie's apartment after a cooking accident, though. Initially, Louie is angry, but sees an opportunity to make some money, when he learns that Jim gets a blank check from his wealthy father to reimburse Louie for his losses. Louie is not sure how much to ask for, though, since Jim says he has to call his father to okay the amount. After much lamenting over the amount, Louie settles on about $30,000 and Jim's dad okays it. Louie is overjoyed until he learns that Jim's dad was expecting the amount to be more like $200,000.

When Elaine is offered a job as an art gallery manager in Seattle, she asks the gang for help in making a decision. The cabbies share with Elaine some stories about life changing decisions they once had to make. Tony talks about how he refused to take a dive in a major fight, even though he will likely be in trouble with the mob. In the fight, Tony learns that the other fighter has also been paid to take a dive, and the fighter does so in comic fashion. Next, Louie talks about how he became a taxi dispatcher after mercifully taking over for the kindly old dispatcher who had to take his wife to the doctor. Louie finds he likes the job and forces the old man out of the dispatcher's job into retirement. Finally, Jim tells of how he was very studious at Harvard, until his free-spirit girlfriend turned him on to hash brownies. (Part one of two)

(Part two) In a continuation of the previous episode, the cabbies share past experiences with Elaine. Latka discusses his decision to leave his mother and move to America. Alex talks about an opportunity for a major promotion at a desk job he had, but would not compromise his principles to take it. Meanwhile, the man who offered Elaine a job comes to the garage to get a decision from her, but he withdraws his offer when he sees how wishy washy Elaine is being about it.