Daphne is pregnant, and she and Niles are keen to make an official announcement to the family over dinner. Meanwhile, Frasier's relationship with Julia has run into difficulty, and following a conversation with his brother, Frasier decides to "commit to commitment" and resolve the problems rather than run away from them. His reconciliation with Julia ends up coinciding with Niles and Daphne’s announcement dinner, which they are compelled to relocate to Frasier’s place after their oven breaks down. They agree to let Julia stay for dinner, and even though they find her frankness and general conduct offensive, Frasier is reluctant to find fault because of his renewed commitment. Julia casually announces Daphne's pregnancy to everyone after overhearing her in the kitchen, ruining the announcement. Eventually, Julia mocks Frasier's hand towels and he breaks up with her in disgust. In the end, Frasier apologizes for allowing Julia to ruin the evening and the family celebrate Niles and Daphne's news.

Frasier thinks that Roz's new boyfriend is gay. He follows him into a gay bar, which makes everyone think that Frasier is gay. Alistair Burke (Patrick Stewart), a high-profile gay opera director then becomes interested in Frasier, who may be too enamored with the perks of a power-couple relationship to set Alistair straight.

While out shopping for a couch, Frasier and Niles encounter Ronee Lawrence (Wendie Malick), a former babysitter from years ago who turned down Frasier’s affections and used to tell Niles scary bedtime stories. They learn that she is now working as a singer and pianist at a local hotel. Having established also that she is divorced, Frasier takes the opportunity of inviting her round to his house for cocktails that evening. Martin is delighted to see Ronee, and soon both he and Frasier are flirting with her. They both pursue her to the Wellington Hotel to see her play, and continue competing for her attention. Frasier persuades her to duet with him, but she sings directly to Martin. As Ronee and Martin grow closer, Frasier goes through a spell of depression, and since he is due to start private psychiatry again soon, Niles becomes worried.

The KACL team has a weight loss competition with competing radio station, KPXY. At the initial weigh-in, Frasier recognizes one of his "mortal enemies" from his high school days participating on the opposing team. The two make a bet on the outcome of the winner, with Frasier’s dignity pitted up against a new chess set. At the final weigh-in, the KACL team loses by a mere 2 ounces. Roz then cuts off her hair and KACL wins the competition.

Frasier had been having a bad day. During his radio show, he came down with a coughing fit and Roz had to advise his kleptomaniac caller, Babette, after which she claimed he had been dispensing the same advice for ten years. He was later turned down by an attractive woman who had parked her car in his space, and cornered at his front door by an elderly neighbor (Estelle Parsons) who said she could set her watch by his routine. Calling round to change a light bulb for his neighbor, he learned that even she is still dating at the age of 83. He surreptitiously steals an item from one of her shelves, just for the thrill. However, he is plagued by guilt, and wants Niles' help in returning the item.

Frasier chips an old earthenware crock pot while preparing dinner, and is about to throw it away, when he pauses, and remembers the dinners associated with the item, going back in time until finally remembering the first dinner he had made for his father, Niles, Daphne and Roz. The show invented new scenes from previous seasons, with the cast wearing the hairstyles, clothes, and vocal and semiotic mannerisms from those previous seasons, in some cases wearing wigs.

• 2003: Niles and Daphne are still newlyweds, just back from their honeymoon in Tahiti. Roz tries to set up Frasier with her friend Lizbeth.
• 2002: It is Roz's birthday, and Cinco de Mayo celebrations are being held in Seattle. Niles and Daphne are enjoying their active sex life.
• 1999: The Crane family are celebrating Independence Day.
• 1998: The Crane family are celebrating Thanksgiving Day. Frasier is still unemployed after KACL had changed formats, but Daphne is concerned that Frasier might fire her due to a lack of funds. Niles is separated from Maris, and unhappy with his new residence at the Shangri-La. He is pining for Daphne. Following the changed KACL format, Roz has a temp job.
• 1996: Niles is still married to Maris. Frasier is having his disastrous dating woes. Roz is enjoying the single life.
• 1993: Frasier's hair is longer and Daphne’s hair is a bouffant. Frasier and Martin are still sniping at each other, Niles is married to Maris but bringing Daphne gifts, Frasier and Niles begin their love of sherry, Kenny Daly appears as a pizza delivery boy hoping to break into Seattle radio.

After the flashbacks, Frasier repairs the crock pot, warmly places flowers in it, and gives it an honored place on the dinner table, as everyone arrives. When he fills it with water, the pot immediately begins to leak from all the cracks.

While on a plane, Frasier meets a woman named Anne. They engage in conversation and in flashback, Frasier recalls the events preceding his plane ride: Frasier and Niles volunteer to put together a quick wedding for Martin and Ronee when the venue is only available for one day. Meanwhile, Frasier says farewell to Charlotte as she departs for Chicago. The wedding ceremony gets off to a rocky start when the guests are stranded outside in the heat and things get worse when Eddie swallows one of the rings. Daphne and Niles rush him to a nearby veterinarian and while there, Daphne goes into labor and gives birth to her and Niles' son. Ronee and Martin get married at the vet clinic. Frasier's agent Bebe Glazer gets him an offer to do a television show in San Francisco, which Frasier initially declines but after realizing that he wants to start a new chapter in his life, he accepts. A case of communication breakdowns lead Martin, Ronee, Roz, Daphne and Niles to believe that Frasier is dying, an error given more substantial backing when he begins giving them each some of his most prized possessions, and when a doctor phones and leaves a message saying that Frasier's 'results weren't good.' The misunderstanding is soon cleared up and the family celebrates Frasier's new opportunity in San Francisco. Before he leaves, Frasier and his family share a tearful farewell and Frasier explains to them that with Martin and Ronee newly-weds and Daphne and Niles' newborn, David, and Roz getting the job of station manager at KACL they each have begun a new chapter in their lives and that he wants that for himself now. He then goes on to recite Tennyson's "Ulysses" which flows into him saying it in his last show. Frasier records his last show, with the people who work at KACL and his family watching him, his final words on his talk show are "For eleven years, you have heard me say 'I'm listening'; well you were listening too, and for that I'm eternally grateful...Goodnight Seattle", and hangs up his headphones before the episode flashes back to the plane, where Frasier has just finished relaying his story to Anne. In a final twist, the plane touches down not in San Francisco, but in Chicago. Frasier turns to Anne and says "Wish me luck..."