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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.

Lou decides to add a female newscaster to his staff and gives orders to find a “girl like Mary,” which leads Mary, as well as Sue Ann Nivens, to audition for the job.

A snowstorm keeps Lou Grant from joining some gambling pals in Las Vegas, so he insists Mary set up a poker game at the station, even if the only round table in the building is on the set of a kiddie program. Mary hurriedly rounds up Gordy, the weatherman, Ted Baxter and Pat, the bartender, but for some strange reason has a hard time getting Murray Slaughter to join the group. When Mary finds out why, she’s in big trouble with Murray’s wife.

When young Bess Lindstrom’s boyfriend meets Mary Richards, he falls madly in love with her, and the generation gap has never before seemed so wide. Young William Campbell, plays hooky from school to visit Mary in the newsroom, using the excuse that he has been assigned to do a story for his school newspaper. It isn’t until much later that Mary realizes his friendly manner is based on something more like a severe teen-age crush than just friendship and, by this time, Bess has begun to think of Mary as the “other woman.”