Al Bundy is an unsuccessful middle aged shoe salesman with a miserable life and an equally dysfunctional family. He hates his job, his wife is lazy, his son is dysfunctional (especially with women), and his daughter is dim-witted and promiscuous.
In the third season opener, Al learns that he has had a copy of "The Little Engine That Could" since 1957 and when he goes to return it, he finds the same fat librarian that was there in 1957.
Peg thinks she might have seen Elvis at the mall and Marcy notices a pit stain shaped like him on Al's shirt. Elvis fans come flocking around just to see it.
A nice weekend away for the Rhoades' and the Bundys turns into misery when Peg, Kelly and Marcy all have their period at the same time, torturing the men.
The Bundys inherit some money from a relative and decides to go to a fancy restaurant, but Al accidentally forgets his wallet. It is up to Bud and Kelly to go back and get the wallet, but they decide to ditch their parents at the restaurant, unable to pay the bill.
Peg goes to Kelly's school for mother-daughter day and talks about the joy of being a housewife, meanwhile Bud has to learn the value of a dollar after breaking the Rhoades' window.
Steve and Marcy ask Peggy to look over their house, but when a moving company asks for "Steves Roadhouse", Peggy allows the company to tow away the Rhoades' home, and they have to spend a night at the Bundys - where Kelly is having a slumber party.
Al and Peggy go to their high school reunion. Peggy wants to be prom queen and she spent a lot of money calling old friends and buying new clothes to gain votes. But when she thinks she has the majority of the votes, her rival Connie Bender appears and surprises Peg with the fact that Connie is now in the lead to be prom queen.
Peggy tries desperately to get more votes but it seems that most of the people are going to vote for Connie. Bud and Kelly ask Marcy and Steve about the sixties and after some history, Bud and Kelly dress up as hippies and visit the prom. Al runs into his old rival Jack, who appears to be Connie's husband, and Al and Jack decides to fight outside. Meanwhile, Peg rigs the election ... will she win?
When all the women in the neighborhood gets peeped on except Peggy, she gets really jealous and eventually puts out a ladder, milk, and cookies for the him. Meanwhile Al convinces Bud to stop fooling Kelly and actually help her with her studies.