A street gang known as the Dragons causes trouble at Rachel's Place. They harass Urkel (by hanging him by his suspenders on a coat rack), make fresh comments to Laura and Rachel, and damage glassware. Rachel orders the gang members out, but Chain, the gang's leader, has everyone pick tables, chairs, and more malt glasses so they can cause major damage.
Just then, Carl shows up and, knowing what was about to happen, asks what's going on. The gang decides to leave (but not before Carl asks Chain to pay for the broken glasses).
That night, Rachel and the others laughedly talk about how Carl taught the Dragons a lesson in manners and respect. Then, the phone rings. It's Carl and it's the worst news imaginable ... a gang, likely the Dragons, have heavily vandalized Rachel's Place.
The damage is far worse than Rachel had ever feared. Tables and chairs lying everywhere, video games damaged, the glasses and china broken ... and of course, don't forget everything spray painted.
Things go from worst to even more worse ... Eddie staggers into Rachel's, battered, bloodied and bruised. While he was out walking, the Dragons had jumped out from behind a parked van, attacked him and beat him up. Fortunately, Harriette is able to treat the injuries, which are not serious.
Carl is outraged and wants to take matters into his own hands. Urkel begs him not to, knowing that the Dragons' members can cry police brutality if he were to hurt them, but Carl insists he be allowed to handle this his own way since it was his son that was attacked.
But Urkel manages to persuade Carl to handle things ... by allowing him to pose as a bloodthirsty gangster who is seeking to get into the Dragons. He'll be hooked to a wire, and Urkel's conversation with Chain will be tape-recorded.
At first, things go off smoothly, but as Urkel continues to ask questions, one of the more talkative members lets slip that he and the other Dragons caused the vandalism and beat up Eddie.
Chain tells the others to shut up and then says he suspects that Urkel was wired. Carl and Lt. Murtagh (who have been listening to the entire proceedings from their surveilance van) have to run in to save Urkel's life. Even though they are handcuffed together thanks to Murtagh's immaturity.