Homer Simpson surprises the family with a newly decorated basement, now a rec room with a pinball machine, a ping-pong table and other luxury items, prompting his wife Marge to ask how Homer could afford all this. He says he has a plan and in the next scene files for bankruptcy before Judge Constance Harm, believing that this will save him from paying his debts. Unfortunately, Judge Harm tells him that the bankruptcy laws have changed and under the new laws, he has to pay everything back. When looking though the family's expenses, Homer decides to save a lot of money by moving his father Abraham out of the retirement home and having him live with the family. The rec room now doubles as Grampa's room.
One night Homer and Marge go out, and they ask Abe to babysit. Not entirely trusting Abe's competence as a babysitter, Marge also asks her sister Selma Bouvier to come over and watch Abe watch the kids. During the evening, Abe and Selma end up kissing and eventually fall in love with each other, and are unaware that they are caught by Homer, much to his dismay, as he wants his dad to end up old and lonely. Grandpa previously dated Selma's mother Jacqueline Bouvier in "Lady Bouvier's Lover". As is the case in this episode, Marge is happy with the arrangement while Homer is not. Homer calls Selma's twin Patty, and asks her how she feels about this pairing. Patty is no happier than him and she enlists his help to break them up. Patty impersonates Selma and Homer dresses up as "Esteban de la Sexface", a Spanish lover-type, and the two arrange for Abe to catch them kissing. Their plan is foiled though, when the actual Selma comes by and catches them. Angry at being manipulated, Abe proposes to Selma. She accepts; they are married and move in together.