Corinne breaks up with her boyfriend, Buzz, after Val arrests him for soliciting. Val then suspects that Mickey wants to move in on Corinne.

Ruggs turns up to work without his pants and explains to Lt. Fogarty that a nine-year-old boy, Robert, mugged him. Fogarty, who is on a cheese-only diet, becomes obsessed with a strange smell in his office until Ruggs realizes it's the lieutenant who smells. While Richie is persuaded by John to see if Richie's dog likes his so the two pets can have companionship, Schuler gets a date through the personal ads. All seems to go well until, walking home, she demands Schuler's shoes at gunpoint.

The squad accidentally raids room 5C of a tenement building before breaking up an illegal Korean gambling den next door. Some of the confiscated money subsequently goes missing. While Fogarty is acting strange due to terrible flu, Richie goes to his priest to admit that he genuinely mislaid $1,000 from the gambling den haul but, being from a family of cons, he is afraid no one will believe him. He is persuaded to tell the truth and returns to the squad room, only to find that everyone knows about the error.

Schuler and Corinne pose as a married couple looking for extra-marital kicks at a brothel, which results in the arrest of its madam, Ashley. She turns out to be the girl Schuler worshipped from afar at high school and he is made to think she'll go on a date with him in return for preferential treatment. Mickey feels he's not being treated as one of the team.

Crawford and Ruggs think they've spotted a porn peddler on the street when the man offers them something strange and exotic. It turns out that he is selling llamas. John hosts a sexual harassment seminar in the office. Richie Biondi prepares for his brother Carmine's bachelor party. Schuler obtains some confiscated sex toys from the evidence room for the celebration but they are accidentally sent to Fogarty's wife. She is later reported to have been very pleased with the gift. During Carmine's party, a llama is delivered unexpectedly.

Richie's brother Tony is arrested for illegal gambling. For once, Richie decides not to help get Tony out of jail before his sentencing, much to his mother's annoyance. Fogarty doesn't know what to do when his second, younger wife says she wants to have a baby, which prompts the rest of the squad room to discuss the pros and cons of parenthood. Schuler is driven crazy by John's exotic brews of coffee.

The morals officers accidentally expose a vice squad undercover operation. After Mickey overhears a phone conversation, which says that someone is going to be 'whacked' (i.e., transferred or fired) for the mishap, everyone is afraid for their jobs. It later turns out that one of the vice squad undercover cops was crooked and exposed the operation. As the morals officers watch a TV report about the crooked cop's arrest, a cleaner arrives to say that someone called to have the squad room's floor 'waxed'.

Lt. Neil Fogarty, always living on his nerves, is made even more nervous by the fact that he must run the morals department of the New York City police while his boss, Captain Chung, lies seriously injured in hospital. His team is made up of wisecracking second-in-command Val Vandergroot, sexist slob Ken Schuler, busty blonde Corinne O'Boyle, who frequently ends up having to pose as a hooker, tough street cop Mickey Crawford (who is also Val's ex-boyfriend), by-the-book university graduate Darnell 'Shag' Ruggs, dim-witted mama's boy Richie Biondi, and gay civilian aid John Irvin, newly transferred from the 15th precinct (of NYPD Blue). The squad faces a tricky case when trying to catch the patrons of a bar selling alcohol to minors.