ALF is still in the hospital with Tiffany and Mr. Foley. He convinces Tiffany to help him get back to the Tanners, but changes his mind when he hears about Tiffany's condition.
When everyone is leaving the house for the evening except Brian and ALF, Kate doesn't want ALF to babysit Brian, so they ask Mrs. Ochmonek to babysit. When Mrs. Ochmonek starts to watch "Psycho", ALF tries to sneak out of the bedroom.
Halloween is approaching and ALF wants to go trick-or-treating. Kate, of course, objects, but ALF persists. He argues that he has a natural costume and tries offering Willie a deal he can't refuse... Lynn presents Lizard to her parents.
ALF breaks Kate's precious $1,000 painting and gets confined in the garage. ALF can't handle a single night there and makes a bargain with Kate: unless he can behave 7 days in the house, ALF has to move into the garage permanently.
In one of those moments, when ALF lets his mind wander, he unintentionally walks into Mrs. Ochmonek's sight and greets her. Cue Mrs. Ochmonek panicking and deciding to warn the neighborhood about the "space creature".
Alien life form Gordon Shumway crash lands into the garage of the Tanner family. The Tanners call him "ALF" decide to keep his presence a secret so that the U.S. Government will not take away the space being and subject him to experiments.
ALF reminisces his "adventures" on Melmac. Willie reveals that when he was 17, he hopped on trains and crossed the whole country. ALF gets excited about the idea and talks Willie into taking him to the rail yard.