(Part 1) Justin and Candace announce they are going to start dating. Brett, Leslie and even Burski have significant others now, while Shelly hooks up with an extremely tall woman at the bar. Justin makes fun of Danny being the only member of the group who is now alone. Danny retaliates by suggesting Candace has more to lose if she and Justin break up, because Justin will still have all his friends. This causes Candace to back away from Justin and rethink their situation.

The gang learns that Burski only landed his current date by pretending to be blind. As Danny did with Justin, Leslie sabotages Burski's relationship by flashing her breasts, which reveals Burski can see just fine. She later apologizes, telling Burski his constant attention to her looks makes her feel good about herself, and that seeing him with another woman made her a bit jealous. Burski insists any woman he is with right now is only practice for the day when he will win Leslie's affection. Meanwhile, Danny sort of apologizes to Justin for breaking up Candace and him, and helps push the two back together.

Candace and Justin walk in on Danny as he prepares to have sex with a woman he just met. Candace engages the woman in conversation, which embarrasses Danny and causes the woman to walk out. Danny is furious with Candace, and tries to put Justin in the middle of their argument. Justin is about to side with Candace when Danny, for the first time, says Justin is his best friend. Conflicted, Justin retreats to his office, and can only be coaxed out with a Grease sing-along.

In order to help out his mom, Shelly has to quit his job, move out of his place, and temporarily live with Danny and Justin. Justin wants to offer the upstairs loft at the bar to Shelly as a more permanent home, but Danny says Shelly will be too proud to accept charity. Justin makes up a story about the bar being robbed and needing someone there at night, and gets the gang to go along with it. Shelly suspects something is fishy, and he uses his "truth hugs" to extract the real story.

Danny and the gang suspect that Candace is getting annoyed with Justin's nonstop romantic gestures, but is afraid to tell him. Danny is able to coax a confession from her while Justin is in costume, listening nearby. Justin worries that Candace no longer likes the "real" him, but advice from Leslie helps save the relationship. In the end, Candace says "I love you" to Justin for the first time, and Justin responds in kind.

The gang all learns that Mike (played by Bianca Kajlich's real-life husband Mike Catherwood) is going to propose to Leslie. Danny is tasked with keeping Leslie distracted, only to hear his sister say she thinks Mike is way more serious about their relationship than she is. Danny then leaks the secret about the ring, making Leslie angry.

Jackie (Christa Miller), the older woman to whom Danny lost his virginity when he was 17, is returning to town. While Danny assures his friends that Jackie can no longer control him like she did when he was younger, it quickly becomes clear that she can still get him to do whatever she wants.

Danny gets mad when Justin plans to set him up with an old high school acquaintance, only to find out that it's Charlotte (Whitney Cummings), a bridesmaid he just hit on from the bachelorette party in the bar. Meanwhile, Brett meets the "gay male friend" at the bachelorette party and sleeps with him, but he later learns the man is the groom.

Candace's dog is accused of fathering a litter of puppies, and she is being pressured to pay $1,200 in "puppy support". Justin vows to get DNA from a puppy to prove Candace's dog is not the father, only to learn the owner of the mom dog is a large, scary man who runs a home for recently released prisoners. Elsewhere, Burski and Leslie have differing views on what their kiss in the previous episode might have meant, while Shelly announces he's hosting a holiday party only to find that all of his friends are heading somewhere else.

Danny is distraught and confused when Charlotte rates him only a 6 out of 10 in the bedroom. After Charlotte explains that Danny is great at sex but not so good at "making love", Justin resolves to teach his friend about intimacy. Meanwhile, Candace gets advice from both Charlotte and Leslie on how to act sexier for Justin.

Brett is preparing to take the U.S. citizenship test, but loses his lucky American flag sweater that his mother knit for him. When Danny and Justin find a street dancer wearing the sweater, they try to win it back by having the bar crew (as "Danny's Boyz") challenge the performer and his crew to a dance-off. Meanwhile, Burski wants Danny to prove his friendship by helping him find the perfect birthday gift for Leslie.

Danny and Justin face-off after Justin has the Backstreet Boys help him with a surprise. Meanwhile, the gang teams up to help Candace get something back from her ex-boyfriend, Trent.