Dharma's parents arrive for their weekly yoga class only to find Dharma in tears because all her other students have deserted her for the popular self-defense class across the hall. Greg's efforts to cheer her up only get them evicted from Kitty's operatic fund raising evening. Clearing out her locker, Dharma curiously wanders into the self-defense class that turns out to be run by a wacky woman named Spyder, who is promoting herself with alarmist flyers about a massive increase in crime in the neighborhood. When Dharma protests that this is a lie, Spyder intimidates her physically, then invades a depressed Dharma's nightmare about breaking her non-violent principles and retaliating. When Dharma does attempt to remonstrate with Spyder, both she and Greg get their butts kicked.

Experimenting to see if her parents can be trusted to mind the baby, Dharma and Greg take the baby to the movies with them, but the incessant crying annoys the patrons around them, Dharma's crying. Abby approached Kitty to see if they can agree on a compromise between their family traditions for the baby's naming ceremony, which results in a huge gathering and a minister, a rabbi, and a shaman. (Yes, they tell jokes.) Even Kitty, with the help of Larry's special cookies, gets into the swing of things; and all is happiness until a telegram arrives: Donna has changed her mind and wants the baby back.

Greg is forced to make a very embarrassing public admission when he sees the first girl he claims to have slept with and her jealous husband makes some serious threats. Meanwhile, Dharma and Greg attend the wedding of Kitty's housekeeper and offer to park cars as a wedding gift.

Dharma is surprised when both Jane and her parents accuse her of having changed because she is busy attending a society fundraiser with Kitty then alarmed when Kitty congratulates her on having changed to the extent that young socialites thinks she's ""a hoot and a half."" Her identity crisis is confirmed by a visit from the spirit of her Indian friend, George, who directs her to retreat to the Redwoods to find herself and conveys a cryptic message to ""save the young one."" An uncomprehending Greg reluctantly lets her go, persuading her to take Jane with her; then, upon seeing George in a dream, rushes to the woods in Larry's van to save Dharma and Jane, who have adopted a bear cub while remaining oblivious to the nearby presence of its angered mother. Best lines: George to Dharma: ""You might have mentioned that you moved. I scared some skinny guy in the shower half to death!""; Larry, fleeing from the mother bear, slips on something in the woods and mutters, ""That answers that question!""

When Greg rather reluctantly gives Dharma half of his on-line investment account, she becomes obsessed with profit (even borrowing from her parents), but unwisely follows a tip from a friend of Larry's and sinks everything into a San Francisco company that promptly sinks even further. When she appeals to a recently retired Edward for help, he quickly rejuvenates the business, which happens to merchandize women's fashions for men: edrag.com; but Kitty objects that Edward's golden years were reserved for her.

Dharma pushes her mother-in-law's fortitude to the absolute limit when she presents Kitty with an award at a country-club luncheon -- and later wrecks her car.

Dharma agrees to play drums for a friend's teenage garage band. Meanwhile, she helps Greg through his crisis by purposefully invoking arguments with him.

Faced with Kitty's midlife crisis, Dharma decides to help her fulfill her lifelong dream of winning a beauty pageant.

Abby and Larry decide to make it official after thirty years of unwedded bliss, provided they can get Kenny Loggins to sing at the ceremony. Meanwhile, Greg comes full circle on his search for tranquility a part-time resident of the local park comes to him with a legal problem.

Dharma's friendship with two police officers gets her anti-establishment father Larry hot under the collar, and the family feud threatens to ruin Abby's surprise birthday party.

Dharma tries to reconnect with her old life by planning a wild road trip to Mexico with her friends. When Greg decides to go along for the ride, Dharma's friends are less than pleased. Meanwhile, Larry lands a job as a night security guard with Edward's company in order to get medical insurance for the baby.

When Dharma decides to go to college, she meets a professor who stirs some feelings that could disrupt her marriage. (Part 1 of 2)

Dharma gets to know Greg's dysfunctional cousins and in-laws just in time to keep Edward from making a huge mistake in choosing his successor as head of the firm.

Supermodel Claudia Schiffer guest stars as Gretchen, a drop-dead gorgeous new lawyer in Greg's office about whom he's having sexual fantasies. Guilt-ridden over his inappropriate thoughts—especially since it's his ""four-and-a-half-year anniversary"" with Dharma—Greg tries desperately to get Gretchen off his mind, to no avail.