Barbarino is frustrated because he doesn't get a good job at the hospital. So he is excited when he has to take a pregnant woman to her room. But the elevator breaks with them in it and she goes into labor. Now he has to deliver the baby.
Mr. Woodman's niece, Kelly, babysits for the Kotters one night when Epstein comes by looking for Mr. Kotter. He finds Kelly instead, they become acquainted, and they eventually move in together, to Mr. Woodman's horror.
Freddie and Juan compete in the school talent show, but Carvelli woos the judges so he can win the competition. So Horshack and Beau become alternate judges and fill in when the other judges are unable to fulfill their duties.
Arnold and Mary express their love for each other, then Arnold learns his mother married a blackjack dealer in Atlantic City, and now he has to leave school and the woman he loves. So Instead of leaving, Arnold asks Mary to marry him.
Epstein has a job prospect, but Washington unknowingly takes the job before Epstein gets a chance to interview. Their friendship is in danger, and they decide to settle their differences through a fight at the local spa.