In 1976, Mary Ann Singleton comes to San Francisco and, after crashing with her school friend, takes a flat at 28 Barbary Lane in a house owned by the bohemian, pot-growing Mrs. Anna Madrigal.

Whilst Anna and Edgar continue their platonic friendship, Mary Ann allows herself to spend a weekend with Beauchamp at a hotel, where the promised Z-bed does not materialize.

After her first night as a volunteer on a Samaritan-type switchboard, Mary Ann comes back to be confronted by DeDe, holding the scarf she left in Beauchamp's car.

Michael's parents visit and he shows them around the city, keeping a discreet silence about his sexuality. Anna and Edgar also try to keep their affair secret as he stays the night.

DeDe broaches the idea of having a baby with Beauchamp. Brian and Mouse hang out together, while Jon defends Mouse to his friends and later gets a surprise at the bathhouse. Mary Ann celebrates Norman's birthday with him, and Anna reveals her secret to Edgar.

Jon, who has met DeDe as her gynecologist and likes her, breaks things off with Beauchamp, informing him of his wife's pregnancy.