Ethel and Frederick meet for the first time since their aborted wedding. Overprotective Harry is overseeing the installation of a brand new kitchen for Ethel while Martin Edwards decides to give the famous front door a new lick of paint.
Ethel is studying (not to mention practicing) medicine, because every Bed & Breakfast needs someone with knowledge of first aid. Neil and Kim have both got their mind set on moving into the spare 'box-room'. Harry has got a new job as a singing Telegram, and must dress up as Tarzan for a sweet sixteen party. Lucky for him, Dicky Heart & the Pacemakers are on hand to give him tips.
Ethel is trying to convince everybody that she's training an invisible dog. Harry has a gig to open a pet shop as a singing telegram, and dresses up as a gorilla, chicken, rabbit and a dog. Dawn returns from holiday and is exhausted from the trip. Neil and Kim are now occupying the box-room on alternating weekdays.
Dawn is being very posh. She has even gotten David Taylor to play her butler. What is more, she is hinting that her special VIP guest is none other than Prince Andrew (it turns out to be a DJ, Andy Prince). Harry is shocked to learn Kim has been dumped by her boyfriend Dirk (aka Berk), because Dirk just happens to be Harry's employer.
Whith Ethel still away on holiday, Martin and Tony Deal try to lure all the guests to No 75. Tony even puts on a mask molded after Harry by visiting mask makers. Dawn is busy counting fleas while Kim, who has fallen out with Neil again, is playing "Porkys" on the piano.
It's a girls weekend as Harry and Neill are off to France. Kim and Dawn fight over a diary as Ethel and Hazel try to negotiate between the two of them. Ethel want to get out of the bed and breakfast business. Martin just wants to be more popular and tries wearing a toupee.
It's Martin and Hazel Edward's 20th wedding anniversary, but only Hazel remembers. This makes her understandably upset. Ethel finally reveals the results of the Quest for the key to the Box Room: Kim has won, but Neil suggests she shares it with Dawn. Ethel is planning to be a clown with Harry as her reluctant sidekick.
Hazel, still upset with her husband, has thrown herself into directing an amateur musical all about pirates. Meanwhile, Martin now demands an anniversary present from her. Ethel is on a diet, Harry has another singing gig and Kim has taken up photography. She has even set up a dark room to develop them in the shed. Harry and Kim end up winning a Funny Face competition.
Harry is afraid the others are plotting to drive him mad, while in effect they are planning a secret Christmas pajama party for him (to make up for last Christmas when none of them were together). As presents, Harry receives a video and LP of his all time favourite film, 'The Sound of Music' Neil and Kim are now definitely an item, so he gets Neil 3 football tickets from her, while Dawn receives a puppy. In the next season it would be revealed Ethel emigrated to Australia over the summer and had taken the puppy with her.