Freddy Rumsen disappoints his team during a pitch. Pete finds an opportunity at the office to exploit while Don proves his loyalty to an old friend. Betty finds a welcome distraction in Sara Beth.

Don and his father-in-law cross paths. Meanwhile, Peggy is in search of a new roommate; and a rich new client is excited to be doing business with the firm.

The firm celebrates as they hit a milestone. Peggy and Paul compete to secure the same account.

The agency's Christmas party is nearly spoiled by the late arrival of a surprise and not-so-welcome visitor.

Peggy is forced to face some unpleasant facts about a client's discriminatory business practices. Don and Faye's burgeoning relationship is tested when Sally runs away from home and turns up at the office. Roger tries to rekindle his affair with Joan.

Don is honored at a banquet for the American Cancer Society, but finds his professional reputation has been damaged. Sally lends a hand to a relative. Megan's parents come to visit from Canada.

Harry finds himself in an uncomfortable position after reconnecting with Paul Kinsey who has joined the Hare Krishnas. Lane takes drastic and unethical measures to get out of financial trouble. Don spends an afternoon with Joan to get her mind off her marital problems.

Don works in secret on a Heinz ketchup campaign while Megan gets a love scene on the set of her soap opera. Meanwhile, Harry makes his power play while Joan has more trouble with the secretaries.

The creative department has a wild, drug-influenced weekend as they work on the Chevy account, Don has trouble letting go of Sylvia, and Sally walks in on an unwelcome intruder.

Peggy receives a bouquet of flowers at the office. Pete navigates the politics of new business. Joan is put in an impossibly awkward situation.

Roger gives Don some unwanted advice. Peggy and Stan disagree over an account's personnel. Harry asks for Don's blessing.