The Sweathogs sneak out to a strip club and recognize one of the dancers as their former classmate Hotsy Totsy. Shortly after, the Sweathogs, Kotters, and Woodman step in and try to find her a more respectable job.

Carvelli goes to Buchannan High as part of an exchange program and tells the students about his encounter with aliens. Woodman, convinced his story is true, plans to go on the spaceship when it lands in the schoolyard.

Kotter becomes the new vice principal and the Sweathogs think they can get away with anything they want. When they tie up Carvelli and Murray, Kotter gives them detention and they decide to quit school and get jobs.