After Niles and Daphne run out on her wedding, they return to do the honorable thing and face their jilted lovers. Donnie and Mel each seek some sort of revenge: Donnie sues Daphne, and then threatens to sue Frasier as well for his part in the affair; Mel promises Niles his divorce, but only after he agrees to put in some public appearances with her as newlyweds.
The tension of Donnie's lawsuit and Mel's demand that Niles and Daphne not be seen in public together (which nixes their planned first date) erupts in a major fight among Frasier, Niles and Daphne. Frasier vows never again to meddle in their affairs, but comes up with a plan to help smooth things over.
Frasier uses his father as a pawn in order to date the attractive owner of a home for senior citizens. Niles and Daphne plan a picnic during which to watch a meteor shower, but are accidentally separated at the crucial moment.
Frasier adopts the role of cultural mentor to Todd Peterson, a Silicon Valley billionaire who's just become the station's new owner. Unfortunately, Peterson simply copies Frasier's tastes - and worse, gets all the credit. Meanwhile, Mel makes fresh demands upon Niles before agreeing to their divorce.
Frasier hires a butler to take over for Daphne's housekeeping duties, now that she is Niles' girlfriend. However, Mel continues to forbid them to be seen in public, and when she unexpectedly shows up at a party at Frasier's house and ruins Niles and Daphne's planned evening out, it proves to be the last straw.
Frasier hires an attractive lawyer, Abigail Michaels, to handle his lawsuit with Donnie, but he suddenly drops the lawsuit. To celebrate, the Cranes all take Abby out to dinner, where they happen to run into Donnie. He explains that he dropped the case because he has become engaged to a client of his, but Daphne fears that he might just be on the rebound, and checks in on him for closure...at his wedding ceremony. Meanwhile, Frasier's budding relationship with Abby is going great, except for the exorbitant legal bill she charged him for her minimal services.
Roz introduces Frasier to her new boyfriend, Luke, and the two men hit it off as well. When she catches Luke cheating on her, she dumps him. Frasier, however, hides his continuing friendship with him while supporting Roz during her heartbreak. Then when Roz gets back together with Luke, she hides that fact from Frasier as well.
Frasier butters up the local morning TV host to let him co-host the Seattle Christmas parade with her, but when she comes down with food poisoning (from his cooking, perhaps?), he learns that Dr. Mary will be his new partner.
Frasier receives the Lifetime Achievement Award from the Seattle Broadcasting Awards. His mentor from Harvard, Professor William Tewksbury, sends him a congratulatory basket of flowers, with a note attached. Frasier over-analyzes the wording of the note and visits Tewksbury, who unearths that Frasier is experiencing deeper emotional problems. Meanwhile, Daphne is literally gaining weight by the minute, which is obvious to everyone but herself and Niles.
Frasier and Niles realize their helplessness when Frasier's car stalls, so they enroll in an auto repair night class. They quickly fall behind, and understand what it's like to be remedial students. They then take the part too far and degenerate into class clowns and become disruptive. Martin helps Roz pick out a new puppy, but after dog-sitting a few times, he starts to take over the puppy as his own.
Frasier and Niles try to reawaken the career of Jackson Hedley, an old actor they saw perform Hamlet when they were young. When they see him perform again, however, they realize that he is talentless and will humiliate himself.
Frasier is supposed to go to a speed-dating event and asks Roz if he should wear a suit or sweater, remarking that the slightest decision can have far-reaching effects. We are shown what would have happened in each circumstance: wearing the suit, he is knocked to the floor at Nervosa by a cute girl named Monica, and they hit it off, while Roz meets a handsome co-worker named Mike; wearing the sweater, Mike is the one knocked to the floor by Monica, and Frasier goes to the speed-dating event, which ends up a disaster.
Kenny arrives at Frasier's place in a panic after unwittingly making a date with a woman even though he's married. Frasier agrees to go and cancel the date, not knowing that Kenny's wife has already chased his date away and is waiting there in her place. Thinking she's a single woman, Frasier asks her out, and she says yes. Daphne's eating problem comes to a head when she starts hiding food throughout the house and Niles finally notices her weight gain.
Frasier receives tickets to the Sonics game and goes with Martin and Niles (even though he and Niles actually had other plans). Niles is selected to attempt the halftime half-court shot, and miraculously makes it. He shamelessly drinks in the adoration of Martin and the rest of Seattle, much to Frasier's chagrin.
Roz gets the green light to put on a special radio show about outer space, and agrees to let Frasier narrate. However, the two fail to come to grips with their reversed roles (Roz calling the shots instead of Frasier) and he leaves the show. She replaces him with the astronaut John Glenn, and Frasier tries to use him to get his rejected ideas into the program.
Frasier and Niles throw a fancy party to try to convince Penelope, the trustee of a foundation, to donate money to the failing prep school they attended as children. Martin hits it off with her and they go on a date, but afterward he meets another woman named Estelle and decides to date her as well. He's confident in his juggling abilities, but isn't nearly as good as he thinks. The sons race to try to get the money before Martin drops the balls.
Niles picks up Daphne from fat camp, and plans a weekend away where they'll sleep together for the first time. Daphne discusses with him her sessions with the camp's therapist, who diagnosed her overeating as a reaction to trying to live up to Niles' perfect image of her. He dismisses this theory obnoxiously, and Daphne throws him out. Frasier helps Niles see the light by revisiting key moments between them.
Even after Daphne's premonition of Niles getting hurt comes true, he says he needs scientific proof before he will believe in her abilities. So they hire a psychic evaluator to put her skills to the test. Meanwhile, Roz has started dating Frasier's mentor, Dr. Tewksbury, but Frasier has a major hang-up with their relationship.
Frasier meets Claire French, a friend of his previous girlfriend Lana Gardner. She is exactly what he is looking for in a woman, but he loses out to another suitor at Lana's birthday party. Lana agrees to try to hook him up with Claire, but it's gonna cost him.
Frasier's study sessions with Lana's son Kirby are not going well, which threatens his chances of ever seeing Claire again. He learns that Kirby isn't studying because he's still not over breaking up with his girlfriend just days before the senior prom. After Kirby shows interest in Roz during a Nervosa study session, Frasier promises to get Roz to be his prom date if he gets to studying.
Frasier spends the day with Lana helping her sell a house. Niles spends the day with Daphne and Eddie in the dog park. Martin spends the day at a parole hearing for the man who shot him in the hip so many years ago.
Frasier books a romantic weekend in Belize with Claire. On the drive to the airport, Lana suggests that he doesn't know how to be happy, but he completely disagrees with her. That sparks a series of events that utterly ruin his weekend, and he now wonders if maybe she is right.