Larry Appleton has just settled in his new Chicago apartment after leaving home of one of nine kids and took a job at the corner discount store working for his greedy landlord Mr. Twinkacetti until he can eventually become a photo journalist. But one evening, Balki Bartokomous, his distant cousin and a Mediterranean sheep herder from the island of Mypos shows up on his door step looking for a place to stay. So Larry takes him in and tries to get him a job at Twinkacetti's store which may mean risking his own job.

Larry tries to kickstart his career and gets tipped off that Dolly Parton is in town committing adultery. So he decides to follow her until he can get a picture to sell to newspapers. Meanwhile, Balki will do a favor for anyone who will ask for it so Larry teaches him to say "no" once in a while but it backfires on him.

Larry takes Balki to a singles bar to meet women and while Balki gets his first date, Larry gets beat up in a parking lot by a boyfriend of a woman he hit on.

Balki wants to get his driver's license but Mr. Twinkacetti doesn't think he can do it. But Larry is so confident that he can, that he bets $50 and offers Balki his car.

Larry takes Balki to the bank to open a bank account but Balki doesn't seem to understand everything about banking when he overspends with his checks and buys Larry new furniture. Meanwhile, Twinkacetti is going to a poker game and his wife, Edwina doesn't like him gambling. So he asks Larry to tell his wife that they were at a basketball game but Larry refuses to.

Larry is miserable on his 24th birthday after he blew a photo opportunity. So Balki tries to throw him a last minute surprise birthday party for him to cheer him up.