Frasier and Lilith invite Sam and Diane over for dinner to celebrate their first week of cohabitation. But things start going wrong when Lilith finds out Frasier and Diane were engaged, and she locks herself in the bathroom. Then Sam and Diane have an argument as well. Meanwhile Cliff agrees to babysit Carla's kids.

Sam's goddaughter Joyce Pantusso (the late Coach's niece) has come to Boston for a visit. Not wanting her to get into trouble, Sam asks Woody to help her out and show her around - but Woody and Joyce have a surprise for Sam when they get engaged!