At an advertising agency in 1960s Manhattan, the creative director has problems coming up with ideas for a tobacco account and crosses swords with the female head of a large department store that she wants to take in a new retail direction.

Pete's return from his honeymoon stirs up conflicted emotions about his bachelor-party dalliance with Peggy; Don and Rachel's business relationship shifts; Betty sets tongues wagging when she invites the neighborhood divorcée to her daughter's birthday party.