Michael quits and heads for Phoenix as his father breaks out of prison. Lucille signs Buster up for the Army, and Lindsay and Tobias institute an open marriage.
Lucille begins an affair with George Sr.'s twin brother, Oscar. Michael's new business model backfires when Gob suggests they build a fake house in two weeks. Meanwhile, George Sr. turns up in Mexico, only to be captured by prison guards.
Michael gets a lead that his father has fled to Mexico and takes along a group to retrieve him. In the meantime, he tries to connect with George-Michael's girlfriend, Ann, and Buster tries to escape going off to the army by stowing away.
George is declared dead in Mexico and the Bluth family holds a wake for their dead family member. Meanwhile, George isn't dead and has returned to the USA, only to be found by a newly dumped George Michael.
George Sr. wants Michael to see if Lucille is really in love with Oscar. Some unfortunate pictures of Tobias wind up on the Internet. Wayne Jarvis, the family's former attorney, makes Michael an offer he can't refuse.
Gob fires the Bluth Company's entire staff during a Christmas party. Michael and Maeby get in trouble singing Afternoon Delight, but are quickly overshadowed by Oscar and Lucille's afternoon delight.
Armed with Michael's good ideas, Gob goes to work for their competitor. Michael plans the annual softball game between the rival companies, and Lindsay and Tobias move to separate bedrooms.
When the company's stock is unfrozen, the family buys expensive gifts. Michael trades the family's portable stairway vehicle for a Corvette. Tobias and Buster enjoy a night out, where Buster runs into a recuperated Lucille 2.
As George Sr. hides in the attic, the family readies for a charity auction. Buster scores a date with the company's new secretary after Michael sets them up.
As Valentine's Day nears, Michael "pimps" Lindsay to save the business. Michael suggests to Tobias that he buy a tape recorder to listen to some of his questionable phrasing.
Michael learns Maggie is 8 1/2 months pregnant and may be the father. Michael decides to enlist Lindsay and Tobias to figure out if she's really pregnant.
Michael wants to know who fathered Maggie's baby to avoid raising it. Buster prepares to go off to Iraq, but before doing so, decides to go swimming in the ocean, and gets his hand bit off by a seal.
Lucille has George-Michael join her in the "Motherboy" contest with her. Michael and Gob track down the seal that ate Buster's hand. Tobias signs away the family's life rights in order to get a part with his former acting coach.
George-Michael runs a doomed campaign for class president. Michael and Gob find themselves competing with each other as it's revealed that Steve Holt is Gob's son.
Determined to get back in the Magician's Alliance, Gob buys a sword from a Chinese shop and hires Buster to be the main magician while he's the assistant. Then he meets Tony Wonder who wants Gob and Buster to be on his next DVD.
Michael hopes to foil George-Michael's plan to get pre-engaged. But the plan backfires when Michael realizes Ann's family is just as screwed up as his.
Michael schemes to get his mother into an alcohol rehab center. Gob is hoping to get even with the producers of "Girls With Low Self Esteem". Kitty returns with a cooler full of evidence against the Bluth Company.
Michael gets arrested after a traffic camera captures him with his father. Tobias falls for Kitty, and learns that his "cease and desist" with the Blue Man Group has been lifted.