Stacey and Gavin return from honeymoon to a big welcome from both families. But Smithy seems none too happy with his best mate and Nessa has a confession to make that throws the whole evening into disarray.

Devastated by the news he's to become a father, Smithy goes AWOL. The boys finally track him down, but can he be persuaded to do the right thing? Stacey is shocked to hear of Gwen's new domestic arrangements as the prospect of living in Essex finally hits her.

Stacey feels dejected because she cannot get a job and Pam tells her she needs to get out more. Smithy needs Gavin's shoulder to cry on because his girlfriend split with him over Nessa's pregnancy and told him she was seeing a younger man anyway. Gavin, Stacey and Smithy head for Barry so that Smithy can go for the scan with Nessa. Smithy lodges with Bryn, who has turned his spare room into a gym and sets about getting Smithy into shape.

Stacey is miserable and homesick because she still hasn't got a job, or her own home. She feels she's getting under everyone's feet, especially when Pam interrupts her during her shower. Gavin tries to console her but she says he just doesn't understand. Pam admits to Dawn that having the newlyweds staying in her house is getting a bit much. (Dawn and Pete are still looking for a threesome.) Gavin and Stacey go to view a potential flat and are shown round a tiny, dirty studio by over-enthusiastic estate agent Duncan.

Stacey and Gavin are still in conflict over where they should live…with Gavin refusing to even consider the idea of living in Barry. Smithy admits to Gavin that he had another fling with Nessa and realises he's going to have to face her again at the surprise party Bryn is throwing for Gwen. Bryn is panicking because he wants to keep the surprise barn-dance themed party a surprise…but he's also having trouble getting enough people to attend.

Gavin seeks counselling for his marriage troubles from Smithy, but Smithy’s idea of relationship therapy is to organise a surprise lads night out at a nightclub foam party. While the lads are knee deep in foam, Stacey is with her family at a bingo night.

Stacey travels to Essex and back into the arms of Gavin. Everything seems perfect until Pam and Mick offer to cover the down payment on a house for Gavin and Stacey. Stacey tells Gavin that it can’t work between them because they both need to live in their own towns. If they were truly meant to be together, this wouldn’t matter, they would even think about it…but that clearly isn’t the case. She gives him her wedding ring back...