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When her mother appears at the apartment building, Rhoda Morgenstern pretends not to be at home and Mrs. Morgenstern is invited to wait in Mary Richards’ apartment. Rhoda refuses to see her, afraid she’ll start feeling guilty about being on her own and not returning back home to New York. Unable to convince Rhoda to see her mother, Mary allows Mrs. Morgenstern to stay with her a few days. During the course of her stay Mary begins to understand Rhoda’s dilemma. Mrs. Morgenstern constantly insists upon doing things for Mary, buying her gifts and trying to get her to think of her as her own mother. But when the older woman decides to return home, Mary makes one last attempt to reconcile mother and daughter.

Lou and Rhoda begin dating casually, and everyone—especially Mary—wonders just how serious the relationship is getting.

With high hopes of boosting WJM-TV’s evening news ratings, station manager Mel Price hires a renowned critic who verbally and viciously attacks Minneapolis and the people who live in the city. Highly displeased with the new once-a-week addition to the news team, Mary, Lou, Ted and Murray are more than upset when Mr. Price hires the critic to appear as a regular, nightly on the news.

Mary Richards’ boss, Lou Grant, gets in trouble with the new station manager when the news show ratings drop. Mary attempts to organize a strike when the station manager tries to get the newsroom staff to evaluate Grant’s work. The strike flops, but Mary is elected to see the owner of the station, an eccentric millionaire and former cowboy actor. The owner storms into the newsroom and unexpectedly hires Lou to be news manager of one of his other stations. When it is pointed out that he already has a man there, the eccentric rehires Lou to his old job. The new station manager gets his just medicine when he gets fired because he cancelled the owner’s favorite children’s cartoon show.

Gordy Howard, former weatherman for WJM-TV, returns to Minneapolis for a visit after signing a contract to host a morning network show in New York. Thrilled over his success, the news staff can barely await his arrival, especially Ted, who plans to con Gordy into letting him co-host the network show.

Producer Mary Richards exercises her authority to hire anyone she wants to at WJM-TV, although Lou, along with Ted and Murray, begins to doubt her judgment when she hires a woman sportscaster. Mary feels that Barbara Jean Smathers, an ex-Olympic swimmer, would be the perfect person to add something unique and exciting to the news concept. The staff at WJM-TV admire Barbara as a swimmer, but wonder if she can stay afloat as a sportscaster.

Georgette is forced to cope with the two extremely opposite I.Q.s of the men in her life when the Baxters’ adopted son, David, is failing every subject in school and his concerned parents find out it’s because he has the brain of a genius, quite a contrast to papa Ted. Meanwhile, Mary is trying to solve a problem of her own as she seeks a reason why she gets stuck babysitting for Mr. Grant’s elderly Uncle Morris.

Mary Richards’ plans to spend the holidays with her family are thwarted when she learns she has to work in the television newsroom – alone – on both Christmas Eve and Christmas Day. Determined not to get depressed, Mary puts up a Christmas tree in her apartment and decorates the office with cheery holiday touches, but her heart isn’t in it.