Joey gets a job as the host of a local game show, The Perfect Couple. He gets the family to do the first show with him, with D.J. and Steve as the dating couple, Jesse and Becky as the married couple, and Danny and Vicky as the engaged couple. Vicky cannot make it on time, so Danny has to pair up with an old woman named Estelle. The director of the show tells Joey to embarrass the contestants, and he does, much to the family's dismay. At the end of the show, Vicky arrives and tells Danny that she accepted a job as a network anchor in New York City. Danny tells her that he cannot take a long-distance relationship, and the two break off their engagement and break up, although they still have feelings for each other. Back at home, Kimmy babysits Stephanie, Michelle, Nicky, and Alex and has trouble getting Nicky and Alex into their pajamas and in bed.

Gia (Marla Sokoloff) and Stephanie both have a crush on Jamie, the new boy in school. When Jamie asks Stephanie out on a date, Gia is enraged and attempts to make her life miserable if she does not cancel it. Stephanie and her friend Mickey attempt to take revenge against Gia and then learn that it is not the right way to go.

D.J. is nervous about taking the upcoming SAT test. The night before the test is given, D.J. has a nightmare about the test going all wrong. Meanwhile, Michelle goes overboard with her whistle reporting "safety violations".

Jesse's grandfather, Papouli, comes to visit the Tanner family. During his visit, a strong relationship builds between him and Michelle. He promises Michelle that, for show and tell at school, he will come and do a Greek dance with her. Sadly, Papouli dies of a heart attack in his sleep the night before. Everyone is mourning, but especially Michelle and Jesse, due to their strong relationship with Papouli. Jesse ends up saving the day by going to school with Michelle and doing the dance for show and tell. Two subplots: DJ and Kimmy get into a fight over a pair of sunglasses, and Danny fulfills a longtime dream of his and Joey's by buying a boat. Both stories tie in with the main plot as the men decide to christen the boat "Papouli", and Kimmy and DJ resolve their feud after Steve intervenes by informing Kimmy, offscreen, about what happened to Papouli.

The series returns to comedic form when Jesse comes home from Papouli’s funeral in Greece. To the family’s shock - Jesse brings back his sleazy doppelgänger cousin Stavros, who ends up taking advantage of the Tanners' generosity and kindness. Stavros later apologizes, claiming his village was destroyed in an accident, for which the family stages a dance marathon at the Smash Club. However, he actually lied and was planning to go to Orlando, Florida, which comes to light when Rebecca tricks him into revealing his plan over the club's PA system which angers the family and Jesse kicks Stavros out of his life. Jesse initially plans to end the dance-off, and return the swindled money, but the family and patrons opt to continue it, and donate the money to a children's hospital.

Joey decides to run for PTA President to help save Michelle's art class, but finds it hard to compete with Mrs. Carruthers' extensive promotion campaign, only for Denise's uncle, Little Richard to come in to help.

The whole family complains about the lack of space in the house, including Joey hogging the bathroom for an hour when DJ needs to use it and Stephanie complaining about Michelle using the room to practice "Down in the Valley" with her harmonica when she needs the same room to study homework and projects. But when a millionaire (Keene Curtis) who lived in the Tanner house growing up wants to buy it from Danny, offering twice as much money as the house is worth, everyone agrees and is excited about moving and starting new lives, except little Michelle, and she will stop at nothing to stay in "the only house she's ever lived in".