Lorelai hesitates to tell her parents about her engagement to Max, despite Rory's urging. Rory and Dean have a spat over Rory's plans for extracurricular activities.
Lorelai's well-intentioned advice falls on deaf ears when Luke reluctantly takes in his wild 17-year-old nephew Jess, while Rory finds herself attracted to the town's newest resident.
Lorelai and Sookie have the first fight of their long friendship when, upon hearing that the Independence Inn may be sold, Lorelai panics and decides that their shared dream of opening an inn together is doomed to failure.
Lorelai's concern over the fact that she can't afford to repair her home's extensive termite damage turns to anger when Rory tells Emily about their problem and Emily again offers Lorelai a loan.
Newly retired Richard is driving Emily crazy, so Lorelai is coerced into taking her father for a day in Stars Hollow, where he proceeds to drive both Lorelai and Rory batty while criticizing every aspect of their lives and refusing to let Rory accept the car that Dean has built for her.
During the annual Stars Hollow charity picnic basket auction, both Lorelai and Rory's baskets have more competition then they both anticipated. Jackson and Sookie sort out a dispute. Rory and Lorelai resolve their own disagreement.
Rory panics when she suddenly realizes that she lost the bracelet Dean made for her. Luke snaps after living with Jess in the tiny apartment over the diner.
Lorelai and Rory help out at the diner while Luke is left to plan his unpleasant uncle's funeral, which causes him to reflect on his own existence. Meanwhile, Emily lends a hand planning Sookie's wedding and the sky's the limit.
It's Sookie's wedding day and Jackson is wearing a kilt. Jess and Rory happen to see each other before the wedding, which Rory and Lorelai are part of. Chris has to leave because his girlfriend calls with some news.