Fonzie returns from Italy, with a beard, and excited about a new job. He'll be teaching mechanics at the High School. But he starts to lose his cool when his students are not as adept as he was at their age. With his students ready to quit his class, he starts to wonder if he has what it takes to be a teacher.

Howard and Marion's nephew Roger Phillips comes to Milwaukee to start a new life. He is clean-cut, straight-laced and quite naive for a college graduate. The Cunninghams give him Richie's old room, but it may take more than their advice to help him fit in to his new surroundings.