ALF is opposed to staying in the tent because the TV and the bathroom are indoors. Plus, he is deathly afraid of snails. When Willie goes to set up the tent in the back yard, ALF is an obstacle in the process.
Uncle Albert arrives and Kate and Willie are shocked that Uncle Albert has actually brought them gifts, a fancy dress for Kate and expensive slippers for Willie. Lynn and Bryan are also surprised to receive thoughtful gifts from their usually Scrooge-like uncle. Uncle Albert proceeds to treat the entire family to an expensive dinner, and leaves a generous tip.
Kate and Willie are discussing Uncle Albert's newfound generosity that evening, while ALF dines on all the leftovers. They warn him that he'd better stay in hiding.
The next morning, when Uncle Albert offers to wash the dishes for Kate, Willie finally asks him what made the change. Uncle Albert explains that a heart attack, and nobody even knowing about it or coming to visit him, made all the difference in him realizing why people did not count him as important. He doesn't want to be remembered - or forgotten - that way. So, he's making a change.
Later, while Uncle Albert is fixing lunch, he hears music and entertainment coming from the tent in the yard. He peers inside, sees ALF, and drops dead of a heart attack.
ALF tries to notify Willie at work of what has happened, telling him to buy peaches and other fruits and vegetables for embalming. Willie is horrified and rushes home. Sure enough, Uncle Albert is dead.
After the funeral, ALF won't show his face around because he is certain that his appearance is fatal. Lynn finally approaches ALF in the cardboard box in which he's hiding and convinces him that he is not a threat. She even brings banana bread, which helps win him over.
ALF reflects on what has happened at night on a lawn chair, and Willie joins him, affirming that Uncle Albert was able to turn his life around and be remembered fondly, instead of as a miserable old man.