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Ted Baxter has auditioned to host a game show in New York, something the WJM-TV news staff treats very lightly until he gets the job and they find their pompous anchorman is really going to leave. Ted drives everyone up the wall with his impatience, wondering if he will be known as a New York quiz show host. But when he wins the job, a melancholy wave flows through the newsroom.

Rhoda Morgenstern meets Bob Pedersen in her speed-reading class, brings him home and introduces him to her best friend, Mary Richards. Before the two girls realize what has happened they find that the three of them are constantly together for dates, lunches and dinners. It becomes increasingly apparent that Bob’s interest has switched from Rhoda to Mary. When Rhoda forces a showdown, Bob admits her prefers Mary. Rhoda, naturally, is deeply hurt and the girls stop seeing each other although both soon drop Bob. Later, when Mary’s television news program is nominated for an award, she invites Rhoda to attend the luncheon with her. Rhoda is reluctant but finally agrees to go along. When the award is announced, the microphone goes dead. Rhoda, sure Mary has won, tells her to stand up. This proves to be a mistake, and now Mary is the one who is deeply hurt.

Mary Richards is distressed when a report on the demographics of the television news program for which she works makes her realize she is no longer in her 20’s. After a discussion with her friend, Rhoda Morgenstern, the two decide that the time has come to involve themselves socially. They each phone an old boyfriend, whom they have not seen for four or five years, and arrange a get-together for drinks at Mary’s apartment. Rhoda’s old flame, Armand, arrives with his new wife Nancy on his arm. Mary’s old flame, Howard, is still single but is a camera bug and insists on taking pictures of everyone. The girls are further distressed when they realize their guests think they were invited for dinner; the only thing in Mary’s refrigerator is a raw carrot.

Ted Baxter’s successful brother, Hal, arrives in Minneapolis and drops by the station for a surprise visit. The brothers have always been very competitive, so Ted, wanting to impress Hal, introduces Mary Richards as his girlfriend. The game of one-upmanship is renewed with vigor when Mary and Rhoda double date the two brothers.

Mary spends every night for a week at a singles bar, researching material for a special news show, and gets an eyebrow-lifting view of the swinging-singles scene.

A Congresswoman with whom Mary worked on a news show accepts Mary’s very casual invitation to dinner and suggests that it be the next evening.

When her sister comes to town, Sue Ann confesses to Mary that the two have always been very competitive, and Lila usually ends up with what Sue Ann wants. When Lila gets a job on a competing station as their homemaker star, Sue Ann takes to her sickbed, believing that the WJM staff has turned against her. Mary forces the others to visit the stricken star in her bizarre, sexually oriented bedroom to convince her to return to her job. Sue Ann is soon out of bed and off to station WJM.

When the star of station WJM’s variety show suddenly quits, Ted Baxter convinces the station manager that he and Georgette can do the show as a team. To everyone’s astonishment, they become a hit. However, Georgette soon tires of the grind and wants to return to being a housewife. Ted resists, but finally gives in when he sees how much it means to Georgette.