Larry and Balki throw a Halloween party with their Marafiki and after six hours of watching scary movies, Larry wakes up and discovers that Balki is an alien from "Planet Mypos" and is turning everyone into Mypiots.
Balki is cheated kwa a con artist who sells him counterfeit watches. After the police prove to be no help, Larry and Balki go undercover to expose the crook themselves.
The editor of the Chronicle's Sunday magazine makes a play for innocent Balki. Even though Balki isn't interested, she won't take no for an answer, and threatens Balki's job if he rejects her.
Larry gets a job at the Chicago Chronicle as a reporter and brings Balki to find a job. Mr. Burns hires Balki in the mail room, but Mr. Gorpley, the mail room boss, doesn't want him there.
Balki invites Gina, a pregnant friend, to stay with him and Larry while her husband is out of town. Already in a bad mood from having to share the sofa with Balki, Larry goes into a panic when he learns that Gina could go into labor at any moment.
Balki wants to get his driver's license, but Mr. Twinkacetti doesn't think he can do it. Larry is so confident that he can, that he bets $50 and offers Balki his car.
