Dr. Frasier Crane, formerly of Boston, has recently arrived back in his birthplace of Seattle to restart his life following his painful divorce. His independence is soon compromised by the fact that his father, Martin, is incapable of living by himself and must move into Frasier's apartment.

After Martin moves into Frasier’s apartment with his physical therapist, Daphne, and his dog, Eddie, Frasier struggles with the loss of his personal space and ensuing tensions with Martin. After repeatedly failing to get any kind of solitary time at home or work, he decides to try forging a bond with his gruff father.

Frasier and his brother, Niles, decide to treat Martin to a meal at fancy restaurant Le Cigare Volant in an attempt to improve his sense of style. Meanwhile, Niles meets Daphne for the first time and is instantly smitten, despite already being married.

After being insulted on Frasier's show for a bad review, newspaper columnist Derek Mann challenges Frasier to a fistfight. Although Frasier agrees in the heat of the moment, Martin is angry to later learn he has no intention of going through with it. After learning of the shame he put Martin through when he ducked out of a similar situation as a child, Frasier resolves to meet the challenge.

Frasier buys Martin a telescope as a gift. While looking through it, Martin spots a woman with whom he becomes romantically involved.

Frasier throws a cocktail party to show off a new painting he has bought, but is humiliated by the artist, who declares it is a forgery. When Frasier's attempts to return the painting to the gallery fail, he plots revenge against the gallery owner.

Frasier gives advice to a caller, Marco, to break off his relationship with his girlfriend, Catherine (Amanda Donohoe), because of his inability to commit. Niles questions Frasier's ethics when he ends up going on a date with Catherine.

After accidentally seeing Martin having an emotional meeting with an old family friend at a restaurant, Frasier and Niles begin to wonder whether Martin had an affair while married.

Frasier meets Bebe Glazer (Harriet Sansom Harris), a smarmy talent agent who sweet-talks him into doing a series of product endorsements. He finds himself conflicted when she arranges a television ad for a product he does not support, knowing that the money earned could go toward his son's college fund.

Frasier is told a rumor that one of the KACL on-air staff is getting fired. When sportscaster Bob 'Bulldog' Briscoe is called into a meeting with management, Frasier assumes the rumor is true and accidentally reveals it to him. As a result, Bulldog quits the station while Frasier learns that his job was actually safe. Feeling guilty and feeling pressure from Martin, Frasier decides to go to the station manager and beg for Bulldog's job back, only to learn the rumor was true and it was actually Frasier who was about to be fired.

Frasier's plans for Christmas with Frederick, Martin and Niles are derailed after Lilith decides to take Frederick to Austria. Already angry, Frasier then has a bitter argument with Martin, and agrees to do the Christmas Day shift at the radio station, which proves depressing.

Frasier is surprised to learn that Martin has been sleeping with a woman from his building. He then broadcasts this fact in his next show, embarrassing the woman and infuriating Martin. Feeling guilty, Frasier resolves to get them back together. Roz is going out with Noel Shempsky, a Star Trek addict.

Lilith (Bebe Neuwirth) visits Frasier in Seattle, wondering if there's any chance of reconciliation after she finds a letter from him.

Frasier is tired of Martin's favorite chair and replaces it, but Martin demands his old chair back. The old chair is easily located on the set of a school production, but the recovery proves more difficult.

Worrying about impending middle age, Frasier strikes up a tentative romance with a shop assistant several years his junior.

Frasier and Niles try to collaborate on a book about sibling relationships but end up brawling while developing a case of writer's block.

Frasier falls ill, and KACL restaurant critic Gil Chesterton (Edward Hibbert) tries to steal his time slot in his absence. Frasier begs Niles to take over to prevent this. When Niles unexpectedly runs the show with great success, a feverish Frasier begins to imagine plots against him, and decides to drag himself to the station no matter what. He locks Niles and Roz out of the studio and broadcasts in a state of delirium.