Tony comes closer to discovering what Steve is doing, while Fiona makes a new friend. In the meantime, Lip helps Ian look for his father.

Grammy Gallagher shows up on a medical furlough and tries to track down a former meth lab protege that owes her money; Sheila plans Karen's wedding reception; Fiona double dates with Steve and his Brazilian girlfriend, and discovers that Steve is married; Ethel reacts to Clyde's death; Frank discovers the identity of Eddie's insurance beneficiary.

Lip tries to get back in Karen's good graces by crafting a prenuptial agreement for her and Jody, while Ian continues to give Lip the silent treatment; Frank wants to kick Grammy out but Fiona resists until the basement meth lab explodes; Fiona is invited on a boat trip but doesn't realize Steve and his girlfriend are also attending.

With Grammy near death, Frank exits the house but walks in on Ian and Mickey locked in passion at the Kash and Grab; when Lip drops out of school, Fiona proposes a deal where they both earn their diplomas, but Lip acts out and gets himself expelled when he realizes that Karen plans to sell their baby to the highest bidder.