When Eric decides to buy Donna a meaningful gift, he ends up getting her an engagement ring. But after discussing it with the guys, he realizes they are too young and the ring was a bad idea. Unfortunately, Eric already told Donna he got her a surprise and on their special evening out, he's put on the spot and forced to make the biggest decision of his life. Meanwhile, in an attempt to lift menopausal Kitty's spirits, Red gets her a dog: Schotzy.

When Bob goes out of town, Eric and Donna decide to "practice" being married at her house. The gang is excited because they think this is a chance to party all weekend at the Pinciotti's place, until Eric and Donna are forced to set them straight. Meanwhile, Kitty goes to the jewelers to pick up a ring she thinks Red got her as a surprise. But she discovers the real surprise: it's actually an engagement ring for Donna.

The Pinciottis learn very quickly that living with Jackie is going to be difficult. Kelso swipes Jackie's panties to taunt Hyde, who has his revenge when Kelso gets a job at the hotel kitchen where Hyde works. Eric receives notice that he must return Donna's engagement ring if he can't make a payment by Friday. His visits to the jewelry store reveal that there's bad blood between Fez and Fenton, the jewelry guy.

Donna wants to take Eric to a department to register for wedding gifts but he doesn't want to go. Red tells him about the easiest way to get out of shopping: choose the ugliest thing so they think you are bad at shopping, and Eric tries it. Donna falls for it, but figures it out and sends him shopping with a wedding crazed Jackie, which he actually enjoys! Donna gets mad when she finds out and gets an enraged Hyde, who told Jackie not to do wedding stuff, to help her ruin their time. Red reads one of Kitty's "dirty girl" fantasy books, and learns a thing or two. Kelso tries to invent something, but all his thoughts have already been invented.

When Eric realizes he is the only loser with no future in the group, he goes looking for a job, only to find he isn't very good at many things. Kelso and Fez look for an apartment for the two to live together in, and Jackie arranges a dinner party to celebrate her high school graduation.

Hyde and Sam's constant fighting gets to Red and Kitty; Donna hosts a radio fund-raiser; and Fez and Jackie have landlord problems.