Eric thinks that Christmas just isn't as fun as it used to be when he was a kid, so Kitty suggests that he direct the church Christmas pageant. He has some artistic differences with the gang over how things should go. Kelso is upset that everyone is making fun of him for wanting to watch Christmas specials on television; and Red is upset over Bob's Christmas decorations.
Eric is distraught after his break-up with Donna and wishes that they never kissed in the first place. As soon as he utters this wish, a guardian angel appears to teach Eric that it's better to have loved and lost than to have never loved at all. The angel takes Eric on a journey to the future -- the '80s -- to show him how everyone's lives would've turned out if he and Donna never got together. Eric remains unconvinced that the pain of his break-up was worth it, until the angel shows him all the wonderful memories he would have never had.
Four days after the big break-up, Eric locks himself in his room ignoring Red and Kitty's pleas for him to come out and talk about it. Meanwhile, the gang goes to Funland without Eric, and Kelso gets lost.
Eric kicks Donna out of the basement when she tries to hang out with their friends. Jackie inspires Donna to compete with Eric over their friends. The competition threatens to tear the entire group apart. Meanwhile, Kitty is ecstatic when she learns that Red has become friends with Pastor Dave.
Eric and Fez decide Hyde needs a girlfriend so they throw a party and invite lots of pretty girls, and Hyde isn't the only one to meet someone he likes; Eric finds a new way to deal with his depression over losing Donna; Kelso and Bob compete to win a van in a radio station contest.
After Hyde moves back in with the Formans, Kitty decides to redecorate the basement so she hires Leo and his cousin Theo to do the job. Meanwhile, Donna and Eric engage in post-break-up bickering, while Fez takes up ballet to meet girls only to discover that they consider him one of the girls.
Bob is in denial after Midge leaves. Donna seeks comfort in the arms of Eric, who thinks this means they're back together. Kelso and Fez go to the supermarket to try and pick up older women.
Donna keeps her promise to accompany Eric to the Pricemart Ball as a friend, but she gets jealous when she sees Eric with another girl. Fez gets a job at the Foto Hut but gets fired for being too efficient and making Hyde and Leo look bad, even though they're the only other two who work there and Leo is the boss. Bob meets a woman at the supermarket.
Eric is upset when Donna writes a story in the school newspaper that sounds exactly like events that happened in their relationship; he decides to write his own story. Red and Kitty have dinner with Bob and his new girlfriend. Red doesn't like her because she's taught Bob how to stand up for himself. Kelso invests in a pinball machine but loses out when Fez persuades the owner to get rid of it and bring in Space Invaders instead.
Red has to produce a new Pricemart instructional film, and his choice of actor for the part of "Stockboy" leaves Eric stunned. Kitty and Donna become friends, spending time together, and Leo takes Hyde and Fez on a shopping spree after inheriting money from his Uncle.
Red thinks Pricemart checkout girl Stacey is perfect for his lovelorn son. The girl impresses Red when she justifies her dubious customer relations with a phrase dear to his heart. Red encourages Eric to ask her out and he even offers to assist. But when Red talks to Stacey, she says she's interested in someone else. Meanwhile, Jackie and Donna give Big Rhonda a makeover for her first date with Fez.
When the guys go bowling for boy's night, Hyde throws a wrench in the plan when his "friend" Jill shows up. Kelso and Fez decide to hunt down their own ladies and leave Eric to feel like the third wheel. Meanwhile, Donna is uncomfortable when she discovers Bob's new girlfriend is spending the night. When Red unintentionally inspires Pastor Dave to give up the cloth, he gets into trouble with Kitty and must find a way to steer Dave back to the light.
Eric thinks that Christmas just isn't as fun as it used to be when he was a kid, so Kitty suggests that he direct the church Christmas pageant. He has some artistic differences with the gang over how things should go. Kelso is upset that everyone is making fun of him for wanting to watch Christmas specials on television; and Red is upset over Bob's Christmas decorations.
Eric catches Red looking through his dresser drawers for a condom and thinks that Red has found Hyde's stash. Jackie gets a job as a cheese maiden and Fez is jealous of the new foreign guy.
Eric' cousin Penny, whom he used to tease unmercifully when they were younger, comes for a visit, and she's...grown some. All the guys are infatuated with her, much to Donna and Jackie's dismay. Jackie and Donna try to be hotter than Penny, with disasterous results. Kitty, feeling like she's not needed, wants to get a pet.
A tornado is on its way to Point Place and Red and Kitty are stuck in their basement with Bob and Joanne; Eric is stuck with Donna at the radio station; the rest of the gang is stuck at the school during a dance. Kelso is named the Snow King and Jackie can't believe she's only the Snow Queen runner-up.
Eric and Donna both start dating other people; Jackie sets Donna up with Kelso's older brother Casey, while Eric has his pick of the girls at school after being named Point Place High's most eligible bachelor. Fez thinks that he's finally going to lose his virginity, and looks for a place that he and Rhonda can use for that purpose. Bob becomes rich again and Red buys a Corvette.
Eric doesn't know what to do when Red says 'I love you', so he decides to say it back, but learns that Red was drugged when he said it. Fez buys Rhonda a box of candies for Valentine's day, then can't help but eat them all. Jackie tells Kelso to get a job so he can buy her something nice for Valentine's day, and he finds a career that suits his interests and hobbies at the same time.
Hyde tries to teach Fez to drive but Fez damages the car and hurts Leo, who was taking a nap behind the car. While in the hospital Leo falls in love with Kitty and starts showing up at the Formans bearing gifts for her. Kelso becomes a department store model and Jackie is jealous because it's her dream to be a model. She confronts him and demands that he doesn't do it but he stands up to her and does it anyways.
Eric catches Jackie kissing Todd, her boss, but instead of telling Kelso, he holds it over her head. Jackie decides to tell Kelso about it herself, as well as telling him that Eric knew all about it. Both of their plans backfire on them. Kitty feels neglected and worries about becoming a Corvette-widow when Red spends all his time with his new car.
While trying to come up with a quote for the yearbook, the gang recalls how they met for the first time. They go through the times when they each met each other, no matter how embarrassing or stupid they were. They also try to work out a saying to put under each of their pictures. Kelso finally comes up with the perfect quote for them all, "It's been a long, strange journey...in Forman's basement!" The gang also realizes how strong their friendship is.
It's Prank Day according to Kelso, who manages to trick his friends twice with his stunts. The guys' attempt to retaliate backfires horribly when Red triggers their prank instead. But rather than venting his wrath on Eric, Red joins the prank war to show the boys how it's done. Meanwhile, Jackie throws an impromptu slumber party to cheer Donna up on her parents' wedding anniversary.
When Red and Kitty go out of town, Eric takes the Corvette out and lets his date drive. She manages to get it all dirty and Eric scrambles to get it clean in time because his parents are coming home early. Jackie and Donna snoop around in Casey Kelso's room while he's away, and discover that Michael likes to hang out there.
Kitty plans a surprise birthday party for Hyde's 18th birthday. She recruits Jackie and Fez as decorators because of their feminine creativity (much to Donna's annoyance). Eric, Donna, and Kelso decide to steal a street sign for Hyde's present. But Hyde doesn't want to celebrate because he thinks this means he'll have to move out of the Formans' house.
When Eric finds out that Casey is taking Donna to a motel, he decides to show up to make sure she doesn't do anything she'll regret. Bob's divorce from Midge comes through, he mentions marriage to Joanne, who totally freaks out. Naturally, Red and Kitty are called upon to advise their neighbors, but unfortunately they aren't offering the same advice. And Kelso stalks Jackie at the mall to prevent her from kissing anyone else.
Kitty decides to throw a neighborhood barbecue after she wins a year's worth of hot dogs. Eric is upset when he learns Casey is invited, so he devises a convoluted plan to make Casey look bad in front of Donna. Kelso and Jackie seek relationship advice from Cosmo to uncover the root of their problems. Fez can't get past second base with Rhonda; Hyde's fed up with how the guys talk about the girls all the time.
Kitty and Eric go to the Hub after a dentist appointment and catch Donna (who's drunk) skipping school with Casey. Neither Bob nor Joanne can exert any authority over Donna, so a frustrated Red intervenes while everyone watches. Meanwhile, Jackie suggests that Kelso kiss another girl so that they can reconcile. And Hyde and Fez try to decide what to do with some dead fish that they stole.
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