Kate Costas takes over as KACL's station manager; when Frasier angrily rejects her suggestions to improve his show, she banishes him to the midnight-4AM time slot.
Frasier's Aunt Louise, who was not popular in the family for her tendency to criticize everyone, has died. Frasier has been left in charge of organizing her memorial and delivering a eulogy,
Bulldog, with Kate's encouragement, plays a series of practical jokes on Frasier. Frasier tries to retaliate, but his first and last attempt sends Kate to the emergency room.
During a late-night broadcast, Kate and Frasier's overwhelming attraction to each other gets the better of them, and they are heard having sex over the air.
Maris disappears without a trace for two days; when a frantic Niles finds out that she has simply flown to New York for a shopping trip, he angrily confronts her, leading to their separation.
Frasier eagerly awaits a visit from Frederick for Christmas, but a crisis occurs when the gifts he has mail-ordered go astray. He has no choice but to fight his way into the mall on Christmas Eve.
Frasier sends out a radio call for a new friend, and ends up meeting Bob, a barbecue-obsessed photographer. Frasier can't stand the man's company, but because Bob is in a wheelchair, feels too guilty to dump him.
When Frasier tells Daphne he doesn't want her boyfriend, Joe, to spend the night in her room she decides her only choice is to move into a place of her own.
Niles brings news of Maris' legal troubles: she has had a minor road accident, but the police came across a heap of unpaid parking tickets. Niles initially asks Martin to exert his influence, but his father refuses on principle.
In honor of February 29th, Frasier encourages the people around him to "take a leap" and do something outside their comfort zone. Unfortunately, their attempts result in failures and make him have doubts about his own leap.
Frasier feels that he stands alone in upholding common courtesy, and eventually loses his patience in a crowded Café Nervosa, forcibly ejecting a man who claimed a table just before him.
Niles announces that he has been retained to testify in a high-profile legal action to be broadcast on TV; local millionaire Harlow Safford is, at age 78, showing signs of senility, so his son is trying to get him committed.
KACL's new owner, an eighty-five year old Texan with a nationwide chain of radio stations, has a job for Frasier: make his fiancée quit smoking. Frasier reels when he realizes the woman is Frasier's agent, Bebe Glaser.
Roz is going to a wedding as a bridesmaid, and has to wear a revolting lime-green dress to make sure the bride is radiant by comparison. The occasion starts her thinking about settling down.
Frasier's show on KACL is presented to a focus group of twelve people, and unbeknownst to them, Frasier and Roz watch from behind a two-way mirror as they give their feedback.
On the third-year anniversary of Frasier's show, Roz gives him a tape of their first broadcast. Frasier listens to it, flashing back to his rough first day on the job, and his rougher attempt on the same day to reconnect with Martin.
