After a party at the brewery, Laverne comes home to find she's wearing a pair of men's boxer shorts. She starts to feel ill in the mornings but was so drunk the night before that she can't remember what happened. She fears that she's pregnant. So Lenny and Squiggy have a contest to see which of them will ask Laverne to marry them, Lenny wins and in a touching scene proposes to Laverne, of course in the end we discover that Laverne is not pregnant and that she was wearing the boxer shorts because she had been made an honorary guy at the brewery.

Carmine calls the gang together at the Pizzabowl and asks them all if they're willing to help him put on a Christmas show for the local hospital. Carmine and none of the others know that it's a mental hospital. When they get there they're greeted by one of the patients pretending to be a doctor. The real doctor enters and tells the group that it is a mental hospital. Shirley immediately becomes anxious as her parents always used to threaten her when she was a little girl that she would be placed in such a place along with her dotty aunt. The shows starts with Edna doing a song and playing a small guitar, followed by Carmine singing ""Jingle Bell Rock"" and tap dancing, then Lenny and Squiggy sing ""The Jolliest Fat Man"" and finished off with Laverne and Shirley baton twirling and singing. The show ends on a warm note getting the message to the viewer that they shouldn't forget the poor people who are on their own at Christmas.

The gang is rehearsing the play ""Alice In Wonderland"" so they're all in costume: Shirley is Alice, Laverne is the Mad Hatter, Lenny and Squiggy are Tweedle-dum and Tweedle-dee. Shirley faints on the couch and is taken to hospital where it is discovered that her appendix is about to burst. Fearful that she is going to lose her hair for the operation, Shirley hides while everyone else tries to find her before her appendix bursts.

Laverne comes to accept the death of her mother and visits her grave for the first time.