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Murray suffers the pains of being Ted’s ghostwriter when a small article he writes for the anchorman for $200 turns out to be worth $2,500 to Reader’s Digest, not to mention the fame and glory Ted is gobbling up.

Georgette visits boyfriend Ted Baxter at WJM-TV, only to find him kissing another woman in his dressing room; so she decides to become a nun.

Out of a job when told that her “Happy Homemaker” show is not being renewed, Sue Ann refuses station WJM’s offer to buy out her contract for a pittance. The station attempts to break her down by assigning her to degrading menial jobs. However, she outwits them by conning Lou and Mary into giving her a job in the newsroom where she immediately becomes a continual and permanent source of irritation.

Lou Grant is afraid Mary Richards is becoming addicted to sleeping pills when, after nights of suffering from insomnia, Mary turns to a doctor’s prescription for help.

Mary’s neighbor Phyllis, who now has a real-estate license and is hungry for clients. She zeroes in on Lou Grant as a likely prospect to sell his house.

Because he’s lonely while his wife is out of town, Lou Grant takes Mary and Rhoda to a movie, where they run into Lou’s son-in-law with a girl who is not Lou’s daughter. Embarrassed at the confrontation, Lou, Mary and Rhoda leave the movie and spend a long evening while Lou plays the outraged father determined to protect his daughter and teach his son-in-law a lesson.

Lou Grant moves into Rhoda’s old apartment and takes over Mary’s private life in much the same way he runs things at the office.

Is Ted Baxter, the inadequate anchorman, really in love? He begins to show all the symptoms when he borrows fresh roses from Mary Richards’ desk to give to the daughter of Chuckles the Clown, on whose show he recently appeared. Ted denies to Mary that he is dating Betty Bowerchuck, Chuckles’ daughter, but finally confesses that his denial is prompted by his fear that his new girlfriend may reject him. Betty, however, has fallen head-over-heels in love with Ted, but she tearfully confesses to Mary and Rhoda Morgenstern that there are certain things about him she doesn’t quite understand. So Mary takes Ted aside to explain a few things about the facts of life – and love.