Benny tells Alan that Katie is now his girlfriend and they can't be friends any longer; meanwhile, Karen Frankel further misunderstands her relationship with Alan, and, during preparations for the rummage sale, Aunt Sylvia and Sid seem to be hitting it off.

Katie finally explains her feelings to Benny and eventually he and Alan resolve their differences--after he makes peace with Karen and Benny has a heart-to-heart with Grandma. Meanwhile, the rummage sale wildly achieves its goal, and Sid invites Aunt Sylvia back to the store for champagne.

Phyllis and George allow Aunt Sylvia to take Alan into Manhattan to Nero's Coffeehouse to hear Jack Kerouac recite poetry, but when they are late coming home, Grandma and Grandpa follow them, whereupon Sylvia and her beat friends and the older folks discover they aren't so different after all.