During a school field trip, Bart notices a change in Milhouse's behavior. Milhouse talks back to Mrs. Krabappel and wanders away from the group. He causes mischief with Bart, and tells him that he does not care what anyone thinks of him anymore. Finally, Milhouse reveals that he is moving to Capitol City with his mother. Bart visits Milhouse in Capitol City, only to find that Milhouse has dyed his hair blonde, is wearing fashionable clothes, and is cultivating a "bad-boy" image, even going so far as to give Bart a wedgie in front of his new Capitol City friends. At home, seeing how depressed Bart is, Marge suggests he spend more time with Lisa. The two begin to bond by washing the car and riding bikes, and after they discover an Indian burial mound together, they become best friends.

Meanwhile, at Moe's Tavern, Apu and Manjula are celebrating their anniversary, and Homer realizes he does not have a gift for Marge for their anniversary. After being thrown out of the bar, Homer sits on the street and people start giving him money. He dances and earns enough money to buy Marge some flowers. Homer continues his panhandling, and eventually makes enough money to buy Marge a pair of diamond earrings. When he continues panhandling afterward, angry bums bring Marge to see what Homer is doing. Marge is mortified and angry, but can not bring herself to throw the earrings away.

Milhouse returns to Springfield when his father wins custody of Milhouse via court order. After she finds out Bart told Milhouse about their secret Indian burial mound, Lisa feels that Bart is acting like their friendship never existed and that he has been using her to fill a void. Bart, however, shows her that he still values her as a sister by giving her a set of cards with nice things he will do for her on them, and the two hug. The episode ends with Isabel Sanford at the TV and Radio museum, pointing out how sitcoms usually resort to using sappy endings for their episodes, and finally begging George Jefferson to come back.

!!Tropes in this episode:
* BlatantLies: Played with. Marge questions where Homer's getting all the extra money. Homer replies that he's not going to lie to her... only to not say another word and continue reading the paper.
* CreditsGag: "Movin' On Up" is playing over the end credits.
* ShoutOut:
** The episodes title references ''Alice Doesnt Live Here Anymore''.
** While Homer, Lenny, and Carl are riding on nuclear waste barrels, they are singing a parody of the ''Series/{{Rawhide}}'' theme song.
** Mr. Burns calls Homer, Lenny, and Carl "[[AdvertisingCampaigns Snap, Crackle, and Pop]]".
** While dancing, Homer hums "The Streets Of Cario" and "Mr. Bojangles".
** The TV museum has an exhibit called "Things that shouldn't talk, but do", consisting of Series/LancelotLinkSecretChimp, the robot from ''LostInSpace'', [[KnightRider KITT]], [[Series/SabrinaTheTeenageWitch Salem]], and Series/MisterEd. They also have an exhibit called "Nosy Neighbors", consisting of [[Series/{{Bewitched}} Mrs. Kravitz]], [[ThreesCompany Mr. Roper]] (the landlord that came before Don Knotts' Mr. Furley; he had a redheaded wife who always made fun of his bedroom performance and didn't have a job, a 1970s Peg Bundy, if you will), and Ned Flanders.
** Nelson has a [[http://en.wikipedia.org/wiki/Little_Bunny_Foo_Foo Little Bunny Foo Foo]] lunchbox.
** The restaurant in the "Itchy and Scratchy" cartoon is called [[MickeyMouse "Mickey Mao's"]].