When Fez finally agrees to present his DMV girlfriend Nina to the gang, Kitty decides to give a formal dinner party, just when Red wanted to see an annual TV challenge special, Battle of the Network Stars. Eric and Hyde object to their girls making them come; when Jackie even wants Steven to wear decent cloths, he really refuses, so she accepts an invitation from her ex Kelso, who wasn't allowed to come alone. All the men soon run off from the horribly boring party. The boys' last hope to hold out against a girl is Fez- even Kelso knows better.
Now Jackie's dad is indicted, their cabin must be emptied, so she and Kitty force Red, and he Eric -annex Donna- to help with the heavy lifting. Because of Jackie's lie to go to a dolls convention, Hyde took Fez and Kelso there. Alas just when Kelso finds the weed stash, Red's gang arrives, except Eric and Donna who got lost on the way, but end up preparing his parents a surprise on the kitchen table no less disgusting.
Annette, Kelso's girlfriend from his and Donna's California exile, comes to visit Michael Kelso but stays with Donna, who insists Jackie must join them. Jealous Jackie hates Annette like bubonic plague, but seems to warm to her, until... Kitty's parents turn up unannounced from Arizona: Burt has lost all their money on an ostrich farm which got wiped out by coyotes, then has a fatal heart-attack while sneakily watching the girls' slumber party, like the boys before him. Grandmother as merry widow is a grim prospects for the Formans...
Donna's dad and his partner Joanne are off for a weekend getaway, so Eric and Donna plan a weekend together to prove to themselves that they're adult enough to be engaged. The gang is determined to throw a party at Donna's, and are unforgiving when Donna refuses. Meanwhile, a call from the jeweler makes Kitty think Red is buying her a present, but she finds out the ring is from Eric to Donna while taking 'poor orphan' Hyde shopping for a new coat, which Hyde hates--an Evis-style flashy jacket that looks nothing like Hyde's style. Kitty tries to prevent Red from ...
Now their parents know and worry about Eric and Donna's engagement, Eric is terrified and shunned by Red, Donna goes plead their case. Fez' boss and lover Nina decides to clear the air and his tension at work by asking him to stay for the night, all the way; when he reports to the gang, its sounds all but romantic or efficient, but Nina has her own conclusion. Hyde didn't even know about Jackie's birthday, Kelso gives her a perfect sweater. Eric claims he'll marry Donna even if he must pay the wedding himself, Red fires him...
Since Red ruined Erics life for getting engaged, their rowing gets worse for weeks, even chases the gang away. Kitty signs them up for a charity father-son Point Place Paul Bunyan pioneer event; they still fight and get creamed by Charlie and Mitch, an apparently perfect pair; as events progress the team' temperaments seem to get reversed, but at the end -a loss- nothing has really changed. Hyde doesn't believe Leo has just disappeared, so the gang look for him in his apartment; the new tenant has a note and a gift for Steven...
Now most kids are out of a job income, they all head for the job fair, Eric and Hyde being fired, Kelso after getting a ticket from a female cop made him doubt if his looks will last, Donna as 'hot' appetizer for her radio station. Red raises the stakes: if Eric sticks to marrying Donna, he'll stop the dumb ass's college funding. Most available jobs are revolting, yet Hyde becomes cook for his former 'big brother', a worse social cripple then him; Kelso decides to become a cop because the uniform would prolong his beauty many years. Eric found a bank teller's job, but...
Donna finds having Jackie as 'guest' is hell, only more invasive than an occupying army. Kelso hopes he'll be a tough cop in a year, but needs a less sissy job than model- Hyde's boss Roy engages him as kitchen hand, but bastard Steven pretends to be his boss, qualified to fire him after a trial period, which the scum turns into a non-stop hell-week, even in the Forman basement. Eric can't meet the payments for Donna's engagement ring, even after selling LPs. Fez is still drifting on a pink cloud called Nina, yet as horny as ever.
The basement gang realizes their lives, conversations and routine are boringly repetitive, so they consider inviting a new member, but Kitty forces upon Eric Lance Crawford, a creepy kid, just because she's after his mother's peach cobbler recipe, but he came prepared... Nina tells Fez she 'needs time, but it's not his fault', the gang translates she's dumping him unless he can make her jealous by playing aloof, but when that finally works...
Fez dreads impending graduation as he probably must return to his lizard-infested country afterward, so he gets Kelso and Hyde to observe a truce in their Jacky-war to join both on a camping trip by the lake with the whole gang, plus Eric's stupid sister Laurie. Kitty is on heavy tranquilizers as she can't handle her 'baby boy' moving out. After a failed ghost prank by the campfire Eric was to skinny-dip with Donna, but ends up screaming butt-naked with Laurie, who next does it in Kelso's van with Fez, who gets even more out of it then sex... Kelso and Hyde's rivalry ...
Although everyone keeps meanly abusing Kelso, he proves himself a true friend by realizing Hyde and Jackie may play cool and aloof, they're obviously still in love, so Michael starts shuttle diplomacy, albeit without rendering any sentence correctly, and makes each believe the other apologized first... Eric's announcement he defers college at least till Red is recovered delights Kitty as much as it depresses Red his 18 years wait isn't about to end after all, and joining Red in the doctor's ruthless diet looked doable to Kitty only till she reads he list includes no ...
It's Donna's last night in Point Place, and it's also Eric's eighteenth birthday. He may not be getting the party he expected, and he has to tell Donna goodbye.
When the boys see foxy Brooke again, Kelso wants her to confirm they did it at a Molly Hatchett concert, but she doesn't even remember the Adonis, who just can't believe it: other girls pretend they did get him. Just admitting he finds Brooke hot too gets Hyde in Jackie's bad books, but he's not about to lie for her; Kitty assures her it just takes a few years of picking shrewd shrew-battles till a man just gives up 'disobeying'. Donna tells Kelso that Brooke is now a librarian, he keeps insisting -the other boys only now discover there is a library in town, and it ...
The gang doesn't believe Kelso's claim Brooke can't be carrying his child. When Donna gets him to talk to her, she tells him never to give the baby and her another taught- he can't believe his luck! Immigration is going to deport Fez if his marriage to Laurie is found fake, so he must sleep in the Foreman house, Kitty can't refuse. Red isn't happy to find him naked in the shower, nor bunking with Eric, who must imitate his ocean sounds tape to stop his endless candy stories, so Fez ends up in the basement, cranky after a sleepless night. Agent Armstrong interrogates ...
The firm is mad enough to designate misanthrope Red as Santaclaus, instead of Bob who grudgingly accepts to assist as elf with Kitty, who by signing up the kids for the same duty unknowingly convinced the boys to attend the school dance they had sworn never to join again. Donna is furious when she learns Eric hangs out there and is now popular with a few schoolgirls, so she turns up during her radio show. Fez fears the football team will again lock him up in a locker. Hyde only came for Jackie's sake. Kelso only wanted to avoid going to the library as Brooke suggested...