Shampoo boy Fez happily obliges much older customer Marsha Sullivan with 'full service': in bed. Marsha also sanctimoniously visits Kitty, who hates her but can't resist the gossip queen. However, she is shocked to learn she's fooling around with a boy Eric's age. Randy insists the gang should chip together to buy Donna a classy birthday gift, but what? After snooping through her room and even looking in her diary, they come up with three. When Kitty learns that Fez is her lover and scolds him, his rebuke that she's not his mother hits hard.
Fez almost loses his apartment when Jackie floods it. He's ready to say "Good day!" to their co-habitation, but Jackie manages to salvage things by bonding with Fenton, the landlord, over shopping, and convincing him to let them stay. Red and Kitty are concerned over the number of arguments that Hyde and Samantha are having. But when they learn the reason for all the fights, it causes some sparks to fly in their own relationship.
Jackie's new job at the station keeps her on edge as she assists psycho boss Christine St. George. Frustrated with Christine's attitude, Jackie tries to win her over with some of Kitty's homemade brownies. Luckily, Jackie's plan works and Christine lightens up, but when Jackie claims the recipe as her own on live television, Kitty is the one who freaks out. Meanwhile, Leo has a crush on Donna.
Randy surprises and charms Donna with his unconventional idea of a romantic Valentine's Day date with a mystery girl- closer then she guessed, but Leo spoils his plans. Red shows Hyde he's prepared for all occasions calling for presents for Kitty, so the bastard robs Red's stash for his stripper wife and Kitty has kittens having to wait for a lousy improvised gift and learning why. When the "What's Up Wisconsin" couple of the month cancels last minute, Jackie can't find another replacement then Fez; his story and kiss-stealing pale compared to Christine St. George's ...
When the friends find out that Donna is now into Randy, they just tease them. Red also gives his blessing, again to Donna's pleasant surprise, only Kitty calls her a whore as expected. The ever-present memory of Eric in the Forman home makes Donna break up with Randy and blame him for being so nice about it, till she admits he's too good to dump. Meanwhile Jacky, now Fez's even lowlier colleague at the hair salon, meanly gives his game away as 'serial dater' to co-worker Hillary, with a surprising result.
Showing her engagement ring to Fez in the car, Kitty drops it, so Red drops the kids to look for it in the woods. Bob blurts out that Red gave her a $65, not $1,000 ring, so he's in the doghouse until he tells the rather romantic truth, yet Kitty gets value for money in the end. Fez gets lost and hides in a cave with his goldfish until Bob finds the candy trail Fez accidentally left. Hyde enjoys taunting Jackie, who refused to team up boy-girl and manages to get wet all alone, while Donna exposes her 'wet' half.
To the basement gang's amusement, Hyde discovers that his marriage is illegal (bigamy): Samantha married Larry before Hyde. Although Sam claims to love only him, he decides to divorce her. Jealous to be the only single girl, Jackie draws up a list of qualities for her 'ideal man', which Donna points out actually describes her dream prince - Fez! After a promotion for his muffler shop goes really badly, Red has a verbal go at the competition and is offered a fat check to quit, and accepts - it's enough to retire.
Now Red finally has reached retirement, he realizes it's not really what he wants. Bored to death, Red grabs an opportunity to help out as handyman in the record shop, but drives the boys crazy, so Steven sends him home. Kitty insists he makes up, so Hyde wrecks things Red can repair at home - only to be told he's taking it easy after all. Meanwhile Jackie has finally admitted she wants Fez, who now is no longer chasing her but Hllary, and reneges on monogamy. Donna takes her to therapy with Dr. Hammond, whose patients include Kitty, and whose own marriage is the ...
Fez introduces his well-groomed friend Andrew Davies, from the West of their British-Dutch island, who suggests he returns home and adopts Fez's ambiguous attitude to the girls. At Bob's spurring, Randy makes a last futile attempt to get Donna back. Now the Foremans are moving to Florida, they must sell the house, but Red's host skills scare anyone away and Kitty rattles on about family memories till she throw a couple out herself. Reading his dad has sold the record chain, Hyde turns conventional, so the circle does an inverse intervention, then he gets more Groove ...
It is New Year's Eve and is the last day of the '70s. Kitty is having second thoughts about selling the house and moving to Florida, even though Red thinks she is happy they are moving. Donna has just broken up with Randy and is moving to college. Jackie realizes she loves Fez. Bob decides that he's moving to Florida and open a bait shop. Eric is coming home from Africa, and Kelso, who is now living in Chicago with Brook and his daughter, meets Hyde and Fez on top of the Water Tower.