At the Codfish Ball
performed by Guy Kibbee, Shirley Temple, and Slim Summerville

Don is honored at a banquet for the American Cancer Society, but finds his professional reputation has been damaged. Megan comes up with a last-minute pitch to save the Heinz account. Peggy thinks Abe is going to propose to her, but he instead suggests they move in together, a decision that doesn't go over well with her mother. When Henry's mother hurts herself, Sally takes charge and then comes to stay with Don and Megan, who are already hosting the latter's parents.