Brian has to lie to his friend who wants to come for a sleepover that the Tanner's basement is flooded, because ALF must be kept secret. Willie then tries to explain to Brian that lying is always wrong even though Brian has to keep lying because of ALF. Lying to the Ochmonecks is also tiring Willie, not to mention having to put up with ALF's antics. Kate suggests Willie talk to Larry, a therapist they know. Of course, Willie has to prove that ALF exists and is not his hallucination, which means that Larry and ALF meet.
With ALF feeling bored and useless, Larry advises the Tanners to ask for his opinion on their problems and make him feel more important. However, this plan backfires when ALF decides that he wants to become a shrink and starts to analyze everything they say and do.