Balki is cheated by a con artist who sold him counterfeit watches. And after getting no help from the police, Larry and Balki go undercover to expose the con artist and put him out of business.

When Jennifer's father comes to town, Larry tries to impress him. So they decide to go golfing. Larry is an excellent golfer but Mr. Lyons is a bad golfer and a bad loser o Larry decides to let him win and lets Balki play thinking that he can't golf, but can he?

Lydia has been offered the opportunity of having her on TV advice show but she has one problem, she's afraid of cameras. But Larry tries to force her to do the show because of a mistake he made in high school when he turned down an opportunity.

Larry found the perfect vacation and Balki, Jennifer and Mary Anne decide to give him one more chance with planning vacations. They go to a tropical resort, Club Paradise with broken walls in the hotel room and it is disrupted with a hurricane and Larry can't admit that he's made another mistake.

Larry is assigned to interview Uncle Shaggy, a kid's show host and when he gets Balki to take a picture of him without his costume, the get Uncle Shaggy fired after someone discovered that he has a criminal record for something he did along time ago. But Larry swears he will make it up to him.

After Larry buys an expensive stereo chair, their apartment is robbed along with the chair. So Larry buys a high-tech security system but takes all the responsibilities himself and won't share them with Balki.

Grandpa Appleton comes for a visit and is quite a surprise: He's 76 years old and is acting like a wild teenager, and has a much younger girlfriend. Larry thinks he should act more his age but Balki thinks that it's okay acting as young as he feels.

Balki is discovered by a music promoter and he offers him a record and video contract. So Larry convinces Balki to accept and he becomes the newest rap star after shooting a video called ""Fresh Young Balki B."" But after they watch it, they notice that a different voice was dubbed in and Balki quits.

Balki convinces Larry to become a volunteer fireman but after the fire chief wore him out, Larry refuses to go back to the fire station until he discovers that Jennifer gets really turned on by firemen. However, the only fire they get to fight is in the fire station.

Larry and Balki get part time jobs to earn extra money. Balki tries stuffing teddy bears, but Larry asks for his help with door to door selling cleaning products. However, Larry is determined to go to a mansion and sell lots of products instead of going door to door with disastrous results.

When Balki finds out that there is a ghost in their house, Larry refuses to believe it. Jennifer and Mary Anne are convinced when Balki shows them a book about it. So they go up to Balki's room (where the ghost lives) and wait for him to come out. Even when miraculous things start to happen, Larry still doesn't believe it until he's attacked.

Balki has passed his Citizenship test and is about to be sworn in as an American Citizen. So Larry arranges for Balki's mama (Bronson Pinchot in a dual role) to come to American to witness him being sworn in. When Balki's mama discovers that he will not come back to Mypos to live, She is angry and Balki has to go back to Mypos.

Larry travels to Mypos to try and persuade Balki's mama to let him come back to America. But before he can talk to her, Larry settles happily into the relaxed life style of Mypos and wants to stay. Eventually, he gets fed up and talks to Balki's mama who realizes that it would really make him happy to let him come back to America where is finally sworn in as an American Citizen.

When Balki shows Larry that Jennifer has been knitting booties, The possibility that Jennifer is pregnant causes Larry to imagine Larry and Balki's future sons becoming best friends in the nursery trying to escape.

Larry wants to put some sparks back in his marriage, and after he fails with Balki's secret treasures, he goes shopping with Balki and accidentally gets locked in the store after hours with a mad dog on the loose.

Jennifer is two weeks overdue and has a few false alarms. Meanwhile, After Balki and Mary Anne went to the fair, Mary Anne goes into labor and has her baby in the driveway. Jennifer is told about a balloon ride Mary Anne went in and in hopes of going into labor, Larry and Balki take Jennifer up in the balloon.