After losing their new apartment, Larry and Jennifer move into a luxurious Victorian house but can't afford to pay for food and heat. So after trying to break the lease without success, They ask Balki and Mary Anne to board with them to help them out.

King Ferdinand of Mypos comes to visit America and dies in Larry's arms - which means that Larry is the new king according to Myposian custom. But convinced that Larry would make a terrible king, they must pretend that he's alive and drop him into the arms of the King's advisor - The Speaker of the Hut.