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When Ted Baxter learns that Mary is attending a night-school class in creative writing, he enrolls in the same course and insists on being introduced to the class.

Mary Richards’ friend, Rhoda, talks her into joining the “Better Luck Next Time” club so they will qualify for a group airline rate for a trip to Paris. The club appears to consist of divorced people ranging from squares to would-be swingers. One of the founders, a dentist named Dr. Udall, is taken by Mary’s beautiful teeth and before she can stop him engineers her election as club vice president. The following day Mary decides she must confess to Dr. Udall that she is not a divorcee and resign as vice president. The dentist is mortified, but tells her he will take care of the situation. At the next meeting, Mary follows the dentist’s instructions and informs the group she is reconciling with her husband. When this does not quite work, she decides to tell them the truth – and is amazed by their reaction.

Lou suffers an acute case of jealousy when an ex-girlfriend, whom he is still very fond of, arrives at Mary’s party with a male companion. Not about to take a back seat, Lou plots a counter-attack.

Mary’s new romance with a tall, dark and very handsome man seems to be progressing quite well until her friends convince her that she’s attracted to him only because he’s so attractive.

Joanne Forbes accidentally collides her car with Mary Richards’ and the girls become friends. When the two begin to spend a great deal of time together, Rhoda Morgenstern, Mary’s longtime friend, becomes jealous. Joanne invites Mary to join her and two other friends for a game of tennis at a local private club, but when one member of the group doesn’t show up, Mary suggests that Rhoda substitute. To Mary’s surprise, Joanne begins to make excuses for not inviting Rhoda. Mary discovers that Joanne belongs to a restricted tennis club and that, despite her denials, Joanne is prejudiced. Realizing how much she values Rhoda’s friendship, Mary decides that she and Joanne should go their separate ways.

In the final episode, WJM-TV is sold, and the new owner, anxious to bring the fourth-rated news broadcast to a number-one position, begins by re-evaluating the news operations. On learning of the new emphasis on news, the news team fears Ted will be the first casualty. Much to their dismay, however, Ted is the only one the new owner approves of, and Mary, Lou, Murray and Sue Ann are fired. Crushed to see years of dedicated hard work end in unemployment, Mary faces a difficult task of keeping self control. Hoping to ease the shock, Lou Grant attempts to cheer up the disheartened ex-producer by sending for her best friends, Phyllis Lindstrom and Rhoda Gerard.

Pandemonium erupts in a usually smooth television news operation when Murray takes a step up to co-produce the news with Mary.

When the television news program is expanded from a half hour to an hour, newsroom boss Lou Grant tells Mary Richards she can hire an assistant to help her with the paperwork. Mary’s neighbor, Phyllis, has become available for the position because she has been fired by her husband after working a few days as his receptionist. When Phyllis puts her application for the job on the basis of their personal friendship, Mary is forced to hire her. Phyllis insists on being referred to as her co-worker rather than her assistant, and immediately begins disrupting the whole news operation. She becomes friendly with newscaster Ted Baxter and encourages him to attempt a one-man revolt and demand a huge salary increase. She also demands that he be given new writers, such as Norman Mailer and Truman Capote, for his show.