Dharma becomes jealous when she learns Abby and Larry will raises the baby differently than how she was raised, but turns to guilt when Abby is rushed to the hospital. Meanwhile, Pete and Jane use Greg as. 'Marriage counseler.'
Greg joins a trip to Mexico with Dharma and her hippie friends, but things quickly get uncomfortable on the way. Larry gets a job at Montgomery Industries as a night security guard, but his first shift gets the better of him.
Dharma is jealous when Abby hires a famous midwife to help with the birth. Edward & Kitty want to give Larry & Abby a new van they won in a raffle, but Larry insists on paying for it.
Dharma finds Greg's lock box under the bed and becomes extremely curious about it's contents. Kitty takes Larry shopping to find a gift for Abby, the new mother.
Dharma is forced to make cutbacks with the co-op while Greg makes a slam-dunk case personal when he learns that the other side's lawyer used to live with Dharma.
At Edward's birthday party, Dharma enters the soap opera-like drama of the Montgomery clan and detects a conspiracy among some of them to take over the company.
Greg leaves for two weeks for the Army Reserve and Dharma starts putting a pass-through window between the kitchen and living room. She also gets Pete a law case to handle by himself.
Dharma encourages the gang to use a plot of land next to Montgomery Industries for a community garden. She finds a bag of money there that leads to a man falsely accused of a crime.
Greg moves into Pete's place and everyone prepares for Russell and Susan's wedding. Pete has a beautiful Hungarian woman living with him and he's not sure if she's his maid or his girlfriend.
