While driving a television executive in his cab, Jim exhibits more psychic behavior by predicting TV ratings. Mitch, the executive, seeks Jim out the next day in hopes of getting more advice about TV programming that might save his job. Jim starts helping Mitch regularly and Mitch becomes a star at the network, but the gang soon convinces Jim (who isn't being compensated for this help) that he's being taken advantage of. Jim angrily confronts Mitch, who agrees to tell the network head honchos all about Jim and to get him a job, but Jim has a change of heart, saying he doesn't want to profit from his God-given gift as a psychic.

Alex runs into his ex-wife, Phyllis, eating alone at a restaurant, and when she tries to reach out to him, he gently tells her he's not interested. Nonetheless, Phyllis shows the next day at the garage to find Alex, but he's out driving. Louie manages to arrange a date with Phyllis, who is particularly vulnerable, having just gone through a divorce. When Alex learns of this (after Louie tries to rub it in), Alex becomes concerned about the depths that Phyllis has sunk to and goes to her hotel to talk. Too late- Louie has already arrived and has already tried to seduce Phyllis, much to her disgust. Alex then takes Phyllis out to dinner, leaving Louie naked in Phyllis' hotel room.

Elaine spends over $200 to go to a trendy hairstylist before a special date, but the result is outrageously bad. When she expresses some disappointment, the hairstylist insults her and she leaves, crying, but still pays. Alex talks her into going back and standing up for herself, so she can get her hair fixed and her money back. That doesn't go too well, but in the end, Louie, who has followed Alex and Elaine to the hairstylist, exacts revenge on the guy by pouring a bucket of red hair dye on him.

Jim invites Elaine to a concert, and while there, they run into an important patron at Elaine's art gallery. The woman invites them both to a party, although Elaine is very worried that Jim will embarrass her in an event that's important to her career. Still, she doesn't quite have it in her to ask Jim not to go. At the party, Elaine's worst fears are realized with Jim's behavior, until he surprisingly wows the crowd on the piano and turns things around.

Newlyweds Latka & Samka throw a Shloogel, one of their religion's traditions. The shloogel is, in effect, a party at Mario's where they set all the gang up on blind dates. Tony is set up with Vicki, an abrasive brunette and immediately starts arguing with her. Elaine is set up with mousy Arnie, who has low self esteem. Jim is set up with actress, Marcia Wallace, who played Carol on his favorite show, Bob Newhart. Louie is set up with Judy, a pretty blind woman. Alex is set up with Susan, who seems to be his dream woman and he seems to be falling for her immediately. Despite the fact that none of the other matches seem perfect, all of them show promise by the end of the evening.

When Jim's father passes away and leaves him a substantial inheritance, Jim's siblings sue to have Jim declared incompetent and his inheritance placed in an account that the brother will have control of. In court, Louie and Alex speak in Jim's behalf, but to no avail. Jim later feels better when he plays a tape of ""You Are the Sunshine of My Life"" that his father left for him.

In this episode, we learn that Alex can be a compulsive gambler. Alex even scares Louie off with his compulsion, but Jim talks some sense into Alex at the end (after having bankrolled him initially).

Latka is sent to rescue a female cabbie who is stranded in a snowstorm, but he breaks down as he reaches her. The two are freezing in her cab and decide to make love in order to avoid freezing to death. They survive and are rescued but Latka feels tremendous guilt and Simka realizes he's been unfaithful (despite the circumstances) before he can even tell her. Latka and Simka seek the guidance of their minister, who says to set things right, Simka must sleep with someone Latka works with. (Continued in part two)

Louie is worried by the prospect of his girlfriend having her sight restored.

Jim wants the cabbies to experience the joy of giving, so he hands each of them $1000 to give away.