Will and Jack can't wait to arrive at the house of two old friends who are known for their wild parties but they discover that the former party animals are now sedately raising an adopted baby girl — and Will shocks Jack when he volunteers to test his shaky parenting skills by babysitting her for them. Elsewhere at a snooty yacht club, Grace believes that Karen is jealous of her romantic relationship with Ben but then later regrets taunting her.
Terrified after someone breaks into her apartment, Grace stays with Will. Unfortunately, having both her and Jack under one roof is driving Will crazy and he forces them to choose which one will move out; Jack and Karen are still at odds over his divorce from Rosario.
With Piper growing more concerned that Leo will never return, Prue and Phoebe try to save a little girl and a fairy princess from evil Trolls. When Prue and Phoebe need Piper's help, her concern with Leo causes a spell to backfire, placing the girl in danger.
After three months on the island, Will finally returns only to learn that Jack and Grace have bonded in his absence. Meanwhile Grace still can't decide between Josh and Ben; When Karen tries to smuggle pearls in the States, Rosario ends up taking the rap.
The sisters must find a way to break a curse which turns a man into an Owl by day and his girlfriend into a Wolf by night. Meanwhile, Prue discovers a way to hold Piper and Leo's wedding without 'The Powers That Be' finding out.
While Piper and Leo are away, Prue and Phoebe must face a series of demons known as Guardians, who protect mortal murderers in exchange for the souls of innocents. After saving Darryl from a Guardian, Prue and Phoebe must testify in court, where they stumble upon an evil conspiracy. Meanwhile, Phoebe falls in love with the new district attorney, Cole Turner.
Dharma's vision of a baby sets her and Greg to officially start trying; Pete asks for Greg's help after getting fired; Abby celebrates the onset of menopause.
When Abby objects to being president by acclamation yet again of the educational co-op, she impulsively nominates Dharma to run against her, and both women are nonplussed when Dharma is instantly elected. While Abby tries to be supportive, Dharma sets about making changes, which backfire, convincing her that Abby is sabotaging her. Meanwhile, k.d. lang asks Greg for a small legal favor which quickly goes to Greg's head.
After replacing her furniture with Greg's stored bachelor stuff, Dharma is a changed woman. But not necessarily for the better — she becomes strangely possessed with material ambition. Meanwhile, Edward finally rebels against the fact that even his private den is entirely decorated by Kitty.
Greg's old girlfriend Stephanie asks for his help in getting her son into Greg's old prep school; and once Dharma sets eyes on the boy, she becomes convinced that he is Greg's child.