It's your classic one of the main characters meets a guy in poor health before a major evnet.
We saw this with Zack on Saved by the Bell, Jamal on City Guys and Silk on Hang Time.
Eric meets Larry Madison at the hospital the gang is interning at. Along the way Eric is given the chance to perform for the patients.
Larry dies and Eric debates on singing for the patients.
Unlike the other versions of this storyline, the dead friend doesn't come back to encourage the main character. Instead Eric decides to do it after a talk from Mr. Belding.
One of the better epsiodes of the season.