While comforting a friend whose husband passed away, Larry and Cheryl comment on the husband's shirt. Larry then goes to the department store the next day to buy it. Meanwhile, Jeff talks Larry into investing in a trendy new celebrity restaurant. Larry also gets into trouble when he throws away some trash in a random garbage can.
Thanks to Larry's miscommunication on his new cell phone, Richard Lewis' girlfriend succumbs to peanut allergies a week before they're supposed to go to the Emmy Awards. A practicing Christian Scientist, she doesn't take any medicine, so Richard and Larry devise a scheme to cook up some brownies laced with medicine. Like all things Larry does, the plan backfires.
Larry, Jeff, and Ted scramble to find a chef for the new restaurant, but Larry doesn't like Ted's recommendation. While trying to find a replacement, Larry learns a few things - Cheryl has a new, male, tennis playing friend, people won't take a wedding gift after a year, and that club soda and salt will get stains out of anything.
The restaurant investors plan a pool party, but only Larry and Jeff show up. Larry goes to use the bathroom in the main house, and winds up getting the nanny fired. Larry recommends the nanny to Jeff and Susie. After the nanny snaps, Suzie's life is threatened. Meanwhile, Richard Lewis tries to get into Bartlett's Book Of Quotations for claiming to have invented the phrase "the ______ from hell".
Wanda Sykes unknowingly starts a rumor about a terrorist attack when she tells Larry about it. Meanwhile, Cheryl's friend is planning a benefit concert with Alanis Morisette performing. When people skip town because of the rumors, the benefit is canceled, and the blame is placed squarely on Larry.
Larry is distraught when he learns that his mother died while he was off shooting a movie in New York, and he doesn't learn about the news until two days after the funeral. Larry uses the loss to get out of a number of unappealing invitations, while plotting to move his mother away from the "special section" of the cemetery.
Suzie buys a guard dog, and Jeff has to leave the house because of allergies. Larry has to persuade Jeff's daughter Sammy to give up the dog, but Sammy wont. Larry, concerned, tries to find a way to please both Jeff and some friends who are also vying for the dog.
Larry befriends Wanda Sykes' new boyfriend, a gangsta rapper. While helping Krazee-Eyez Killa with his lyrics, Larry shoots a scene for a new Martin Scorsese film. When Cheryl tosses the jacket Larry needs for the shoot, he learns Krazee Eyez has one, but after accidentally telling Wanda about his plans, no dice. Meanwhile, Larry offends Suzie by not taking the tour of her new house.
It's December 23rd, and Larry gets up to get a midnight snack. He eats some cookies in the refrigerator. Unfortunately, those cookies were a nativity scene that Cheryl's devoutly religious sister was preparing, and being Christmas Eve, it's too late to get a replacement. Larry scrambles to find a replacement, which he does in the form of a live nativity scene at a local church. But a hair stuck in Larry's throat means no nativity scene.
In the third season finale, Bobo's Restaurant is two days away from being scheduled to open. Larry discovers that the head chef was hired under false pretenses for pretending to be bald. After firing the chef, Larry and Jeff scramble to find a replacement. During the process, Larry accidentally injures the most influential food critic in Los Angeles, who is coming to the opening. The food critic recommends a chef from New York, who turns out to have a rather interesting quirk. Meanwhile, Cheryl has a tense confrontation with Susie after she bails on lunch after ...