After Donna says "I love you", Eric responds strangely and is confused with how he should return his feelings. Jackie buys Kelso a jacket which makes him resemble Fonzie and Bob is kicked out of the house by Midge. Bob moves in with the Formans, much to Red and Kitty's dismay, forcing Red to come up with a plan to get him back into his own home.

Eric gets suspended from school after getting caught holding Donna's cigarette; as punishment, Red makes him smoke a whole pack. Jackie is upset Kelso won't let her decorate his van, and Hyde and Fez go on a double blind date.