A new station manager, Kate Costas, takes over and disagrees with Frasier from the beginning. When Frasier refuses to implement Kate's ideas, she banishes his program to the 2:00 AM shift.
Frasier and Niles attempt to go into practice together, leading to one disaster after another. This episode begins in a psychiatrist's office with the Crane boys detailing their escapade, and goes on to tell the story through flashbacks.
While digging through boxes, Frasier finds an unfinished song written by Martin specifically for Frank Sinatra.
After yet another one of Bulldog's practical jokes, Frasier decides to retaliate by strategically placing a lizard where Bulldog (who's deathly afraid of lizards) is sure to find it.
Frasier hires a contractor to buff a small scratch out of the floor on the day he is to host a wine tasting, only to find everything spiral into a major catastrophe, as problems pile onto each other. Meanwhile, Daphne can't take her eyes off the handsome contractor.
The staff go into open revolt after Kate cancels their annual raise. Frasier, chosen to represent the employees, marches into Kate's office to demand raises and finds himself locked in a passionate embrace.
Kate and Frasier agree to slow their relationship down. All of Seattle hears about it when they lose their resolve and make out in the radio booth. Seattle's abuzz as they try to figure out the identity of "Dirty Girl."
Maris throws Niles out of the house after he stands up to her. Frasier and Martin talk Niles out of crawling back, but...
Frederick's Christmas visit to Seattle appears to be a disaster after the shipping company sends a Barbie and a Homemade Casserole set instead of a "Living Brain". Frasier heads to the mall for some last-minute shopping.
Frasier realizes the true depth of his feelings for Kate, only to find out that she's moving to Chicago the next day. The night culminates with the two having a long discussion in the airport lounge, finding out more about each other than they ever wanted to know.
Frasier's on-air appeal for friendship backfires when a complete bore calls.
Frasier lays down the law after finding out Joe spent the night in Daphne's room, leaving the Cranes paralyzed at the thought that Daphne may move out.
Daphne gives Niles ballroom dancing lessons, as he prepares for the annual "Snow Ball". When his date falls ill, Niles takes Daphne to the ball, providing him with the night of his life.
Frasier's old love, Diane Chambers, comes to Seattle for the grand opening of her play about the "losers" at Cheers and their hopeless obsession with "Mary Anne". Frasier gets roped into financing the whole thing and narrowly avoids another fling with Diane.
Niles uses a man of questionable ethics, Jerome Belasco, to "fix" a parking ticket for Maris. Frasier advises Jerome's girlfriend, Brandy, to leave Jerome after she rattles off a list of his poor traits. Frasier and Niles fear retribution from Jerome.
Frasier suggests that everyone should take a "leap," or go outside their comfort zone, to celebrate Leap Year. For his leap, Frasier decides to sing an Italian aria instead of his usual "Buttons and Bows" for a benefit.
A stressed Frasier resorts to physical force with a rude Cafe Nervosa patron.
Frasier becomes obsessed with chess after Martin defeats him time after time after time.
Niles and Frasier face off when they take opposite sides in a courtroom hearing over an old man's sanity. Niles believes Harlow Safford to be as crazy as a loon, while Frasier interprets his quirks as eccentricities.
Frasier meets an attractive police officer, but she falls for Martin.
KACL is sold to Big Willy Boone, who happens to be engaged to Frasier's agent, Bebe. Big Willy demands that Bebe break her smoking habit, and enlists Frasier's help to make sure she gets it done in three days, or else.
Roz dates one of Niles' patients, a compulsive womanizer. Frasier wants to warn Roz, but can't find away around his ethical obligation for confidentiality. Roz mistakes his attempts to warn her for secret yearnings.
Eleven of the twelve members of a focus group think The Frasier Crane Show is perfect. Frasier obsesses about the one man who disagrees, a newspaper stand owner, and in the process inadvertently ruins the man's life.
Roz gives Frasier a copy of his first broadcast as a present to celebrate his three-year anniversary at KACL. As he listens, Frasier remembers the events as he first arrived in Seattle and reunited with Niles and Martin.