Molly recalls her days in The Fred Dodd Quintet, and at a grocery store recognizes her old guitarist, Harry, of whom she was fond; Florence and Arthur leave on a cross-country trip.

Molly celebrates her 40th birthday with her best friend, Nina. On her way back home, Molly unexpectedly meets Nick Donatello, the garbage man, who reveals the true nature of their ""chance"" meetings over the years. Ramona and a new date visit Molly's apartment to wish her a happy birthday and run into Ron, who was babysitting. Florence, away with Arthur, checks in with Molly but forgets her birthday. Fred comes over to give Molly a birthday present and say good-bye.

Florence and Arthur have some surprising news for Molly about their relationship. Later that day, as Molly takes her baby for a stroll through the park, they unexpectedly run into an old, familiar friend, who stirs up old feelings. After this encounter, Molly strikes up a conversation with a mysterious woman, Vanise, who makes some predictions about the baby and leaves Molly a little disconcerted.

Molly is caught in the middle of her feuding neighbors, Ron and Ramona, who have separated but for economic reasons continue to share an apartment. Florence and Arthur stop by Molly's apartment to check on Fred, who is trying to conduct business over the phone while babysitting. Molly returns home to find Davey depressed, Florence and Arthur about to depart on a trip to an undisclosed location and Fred musing about his blossoming music career ... in Los Angeles.

Molly and Fred join Arthur and Florence for the opening night of the play Arthur is producing. At a gathering in Sardi's after the play, everyone is excited about Arthur's work--and keeping their fingers crossed for good reviews. Later at Molly's apartment, Fred volunteers to be a regular baby-sitter and a part of the baby's upbringing.

Molly returns to work and learns she has been ""promoted"" to a human resources position, the first assignment of which is to fire her friend Bernie because of an ""economic decision."" At home that evening she finds Bernie both in her hallway and on her answering machine, pleading for his job back. On seeing the fee her new baby-sitter Dora has charged for a day's work, Molly makes a second ""economic decision.""

Davey and his son Jimmy disagree about their work styles, with Jimmy looking for change and Davey hanging on to tradition. Molly, home from the hospital, spends the first few days alone with her baby. Arthur and Florence drop by Molly's apartment on their way to the Rainbow Room, leaving Molly to ponder the increasing demands of motherhood.

While friends and family are gathering at Ron and Ramona's apartment for Molly's baby shower, Molly goes into labor. Only one person, having seen Molly on the street hurriedly making her way to the hospital, is present for the birth.