The next day, ALF tells Willie a fantasy of him (ALF) hosting The Letterman Show and having Willie as his musician and emcee. Willie says it will never happen. ALF then explains to Willie that he has called up a number of local media outlets because he is going to expose himself finally to the world. Willie is horrified, and details to ALF what would happen if he were to be seen by the world. Willie paints a vivid picture of ALF, living in a cage in a lab, hooked up to wiring and having his freedom completely taken. ALF concedes that Willie is right.
Feeling imprisoned and cut off, ALF falls into a depression. He sits in the bathtub and eats everything in sight, including the soap on a rope. Willie and Lynn try in vain to comfort him, and gag when they watch the new way in which he eats during this depression. Only one journalist comes to the door looking for the "story of the century," especially since ALF has promised him whiskey. Kate gets rid of him.
After ALF is forced out of Willie and Kate's tub, Kate calls him into the living room. Suddenly, the lights come on and everyone yells "surprise!" Everyone who has known ALF is there, including Kate's mother, ALF's psychiatrist, Jody, and Jake. They've come to cheer him up, and to ALF's delight, have also brought gifts. The party is going full-swing when the doorbell rings. It's the Ochmoneks, who Jake thought were gone dancing for the evening. Miffed at not having been invited, they finally leave, only after insisting on having a piece of cake.
As everyone gathers around the piano to hear Willie play, ALF assesses that his life is not so bad. He informs Lynn that he's having such a good time, he's invited everyone back tomorrow.