When Balki finds out that there is a ghost in their house, Larry refuses to believe it. Jennifer and Mary Anne are convinced when Balki shows them a book about it. So they go up to Balki's room (where the ghost lives) and wait for him to come out. Even when miraculous things start to happen, Larry still doesn't believe it until he's attacked.

Balki has passed his Citizenship test and is about to be sworn in as an American Citizen. So Larry arranges for Balki's mama (Bronson Pinchot in a dual role) to come to America to witness him being sworn in. When Balki's mama discovers that he will not come back to Mypos to live, she is angry and Balki has to go back to Mypos.